Gas price drop could trigger production slowdown

Hmmm...Natural Gas prices have fallen, yet my natural gas bill this month was higher than last month's, even though I used less natural gas...because the cost per therm went way up.

More to the point, however, why would there be a "slowdown" merely because prices have fallen slightly? Last year, prices where far lower, yet there were more permits issued. My guess is the new government regulations are what's really effecting permit count.

It seems our government always is willing to adopt stifling new rules and regulations, with either the unintended, or intended, consequences being that those rules drive industry out of the United States to overseas, where regulations are far more lax and the cost of operation is less. Until the people of the United States figure that out and demand a more industry friendly environment, I'm afraid the United States will continue to be on the short end of industrial growth.

Our elected "leaders" have already driven logging, mining, and manufacturing overseas, and are currently working on the automotive industry, why not continue to drive oil and natural gas overseas also?

If we continue to allow our government to run roughshod over what's left of our industrial base, we'll have a nice, pretty country with pristive vistas, and no jobs.

CLN wrote:

...demand a more industry friendly environment..

Ha ha. I see green-painted well pad equipment every direction I turn around here. Your whine holds no water! Let's take your sentence, recast it ever so slightly...
"...demand a more environmentally-friendly industry..."
Ah. That's better.

Texas had brown outs 2 months ago because they relied on wind energy. Urainium is a limited resource, we have are at peak production of domestic coal and there is no capital left to do any massive investments into solar. Bleak options my friends. The emotional based squeeky wheels are manipulating the unelected bureaucrats into increase the cost to produce the only feasible energy we have left. Drilling everwhere might just by us time to ease out of the carbon age, instead of crashing out of it. Gold, fire wood and a garden is were I am putting my reasources.

Did anyone think the gas and oil companies foreseen this and this is why all the price gouging has been going on, the ol theory of let's make the money while we can because production will be slowing down.
Hello ghost towns of northwest New Mexico!!!

It is supply and demand, not price gouging. Hello under feed cities and suburbs of the future.

Maybe if we start drilling more in the U.S, some country will come over and kick our ass for it!!!
Hillbilly you must be one of those pocket full of money production company jerks we have all made rich!!
I am a realist and a survivalist who don't need this oil and gas BS anyway and if more people would rely on themselves to survive they could do it too.

The article needs to be re-written. Lets all take notes, we now know how much the price has dropped in the last 2 months. Now redo the article and tell us how much the price has risen in the last 2 years. Give us something to compare it with.

Tell us the production during that same 2 year period.

I would be willing to bet that production companies have been creating an in ground vacuum trying to extract as much as possible during this time of "price gouging".

Now you want us to believe that the current price could pose a reduced production rate. YEA RIGHT!!! It is called "supply and demand" on purpose. Now the companies will slow down SUPPLY, so that we DEMAND more. Prices will increase again?? Right? You better believe it!

These people aren't stupid you know.

Nope, I am a hillbilly that listens to the old timers and I love history. Granted, I do make a good living servicing wells. Therefore, my rhetoric does have a bend to it. And yes, we have made them rich, by eating from a reliable food source, reading at night, buying tuperware or Barbies, driving to work, keeping our homes at a comfrotable temperature, going to the doctor and traveling more then 30 miles in a day. A realist you are not, by your statement of 'price gouging' and thinking we have enough domestic hydrocarbon resources to eminate an attack, proves your lack of understanding of reality. Saying that you are a survivalist, gives me concern for your welfare. The commondefinition of the term, is defined by some one who has cut them selves of from their community and have loaded up on weapons. That is not the route to go. Even as a fellow 'gun nut', I have developed a social net work that has an interest in my survival. A lone nut with guns, is the first to go. Having gone through NOLS, Outward Bound and ect, I know that no man is an island. I don't mean to be harsh, but I am passionate about the new reality we are facing and I do not suffer fools. If I have defined survivalist wrong, please correct me.

poor oil/gas people.
you can use the soap box we made for you.

suck it up and move on!

we are all stuck on this rock.

Holey-Moley wrote:

The article needs to be re-written. Lets all take notes, we now know how much the price has dropped in the last 2 months. Now redo the article and tell us how much the price has risen in the last 2 years. Give us something to compare it with.
Tell us the production during that same 2 year period.
I would be willing to bet that production companies have been creating an in ground vacuum trying to extract as much as possible during this time of "price gouging".
Now you want us to believe that the current price could pose a reduced production rate. YEA RIGHT!!! It is called "supply and demand" on purpose. Now the companies will slow down SUPPLY, so that we DEMAND more. Prices will increase again?? Right? You better believe it!
These people aren't stupid you know.

The supply is finite. It can not be increased easily like it was in the 70's. The shortage in the 70's was a localized prodution shortage created by the middle east politicos. The lack of production we see know could be postponed by disregarding the snivelers. Even with an expasion of exploration, we will only postpone the enevitable. We will not see the price of any hydrocarbon drop again. All of your energy prices will go up along with all comodities. The great depression will seem like a party compared to life with out hydrocarbons.

If any of you are interested in history, look back a mere 50 years. Mining, timber, oil/gas, automobiles, the United States had it all.

Then look at how the United States legislated industries out of existence, one by one. First, mining. We get most of our mineral goods from overseas while productive mines here in the U.S. sit idle and fill with water. Then, timber. We get most of our lumber from Canada and other overseas timber producers, even Russia, while our forests burn and mills sit idle. Then, oil. Environmental restrictions and outright bans halt U.S. oil production while wells are capped, drilling is stopped, and refineries rust away...two within 5 miles of my home. Now, the automobile industry loses billions because the investment in truck and SUV production over the last decade has become unprofitable with $4 gasoline.

Nancy Pelosi and Harry Reid want to save the world from humanity, while they forget entirely that humanity IS the world. They go on vacation while leaving the United States berift of an energy policy that could lower prices immediately. They have proven themselves, along with party line Democrats, to be enemies of the people of the United States.

It's past time we send people the likes of Reid and Pelosi back to their land investements and restaurant/hotel businesses. Pelosi can live off the income of her defense contractor husband, and maybe Reid can go back home to Searchlight, Nevada and work at the Terrible Herbst Casino or Searchlight Nugget. I've had my fill with the lot of them.

Anyone who thinks this is a profit driven big corperation plot, is an idiot. Think about it. Would an industry want to bankrupt its consumers. All of the emotional based left has expounded that the car makers are in bed with the oil companies. If so, why are the big 3 in the crapper? We are hosed,( accidental deep pun ), conserve and pray for the best my friends.

CLN brought up that his home gas bill is more expensive than last month. Most states allow the gas utility to raise the prices they charge the consumer (YOU) according to cost increases 2X a year. The HenryHub http://www.oilnergy.com/1gnymex.htm#since30
(an NYSX price index) rose from about $7.80/MMBtu on 1.1.08 to $ 13.31 on 7.2.08. During that run up, PNM probably applied for and received an ok from the NM PUC to raise your gas rate, thus your gas bill. Folks, this is the summer, electric usage is thru the roof. I hate to tell you, but most places in this country, they use Natural Gas to make electricity. There are more and more plans on the books for new NG fired electric plants that you know about. Just cuz you have 2 coal fired plants in your backyard, doesn't guarantee cheap NG or electic bills.
Unfortunately, the NMOGCC has just implemented new drilling rules, called the "pit rules" in NM.
Beleive it or not, the drilling regs in NM before the change were pretty stringent, NM was like Calif or Oregon for stringent rules. Now the rules are tougher. Colorado's drillig regs are more along the lines of Texas or Louisana, very lax. I am suprised that any drilling companies are still drilling in NM, much less SJ county.
As regulations get stricter, prices are going to go up, drastically. Get used to it.

Thank you CLN, for telling it like it is.

You should of added Tom Udall to the list, bet he
was out the door, before Nancy, turned off the lights. Please New Mexicans check this congressman
record, before electing him to the Senate.

Concerned For America wrote:

Thank you CLN, for telling it like it is.
You should of added Tom Udall to the list, bet he
was out the door, before Nancy, turned off the lights. Please New Mexicans check this congressman
record, before electing him to the Senate.

Hey "Paranoid for America"--

You might as well get used to referring to him as "Senator Udall". It's not as if Steve Pearce is a serious competitor...That race is a done deal.

Why don't you just go back to blogging about socialism, tree-huggers, and radical islam, and the other bogeyman that keep you awake at night? You'll be on more familiar territory there.

You are right on the money, Concerned For America. Udall doesn't represent the Four Corners area. He regularly loses the vote up here, but the rest of his district has enough bleeding heart liberals to offset that.

In fact, I think a lot of New Mexicans pretty much forget Farmington is part of the New Mexico. Anyone who's driven the hundred-plus miles between here and any other major town in the state knows we might as well be in another state, geographically speaking.

However, if/when the state loses the tax revenues the oil and gas industry generates, they'll notice all right.

In fact, there's so much money in the coffers right now, Governor Richardson proposes to give the surplus back to the people in the form of a state tax rebate in September. That's one idea from a Democrat that I can support, even though it smacks of vote buying.

CLN wrote:

You are right on the money, Concerned For America. Udall doesn't represent the Four Corners area. He regularly loses the vote up here, but the rest of his district has enough bleeding heart liberals to offset that.

Hey Brainiac, Udall actually won San Juan Co. by a landslide in 2006: 18465 to 12976. Next time, maybe you ought to check your facts.

And "bleeding heart liberal"? God, who writes your stuff? I mean, come on, really, I haven't heard that one since they stopped showing reruns of All in the Family. Feel free to call me "meathead" when you lose it and write your angry response. Please do post back quickly, I'm looking forward to some more laughs.

I didn't say Udall always loses San Juan County.
Even Governor Richardson lost one, and won one. Sometimes Udall runs unopposed and get less votes than the Republicans winners in other county races.

And 5500 votes ain't no landslide.

As for "bleeding heart liberal", that's an age old, timeless, tried and true description for folks like you, mah' man MarsAZ!

Congressman Udall, according to his TV ads, has now figured out why gasoline prices are so high. Too bad he couldn't figure it out when he was Attorney General and kept promising to get to the bottom of the price gouging in the Farmington area. He couldn't find anything out of line, ever.

This is an editorial, not a factual article. Only one local producer was cited. I think the reporter has an agenda. I was glad to see the BS pit rules brought up.