Great Article About The Shale Boom and Bust

Peter Gorman of The Fort Worth Weekly has written a great article about the Shale Bust. Many of us saw this coming. He brought up some interesting facts and points

We have seen production from local wells drop significantly. They have brought in gas lift compressors to "squeeze the blood out of the turnip".

The wells, especially in “sweet spots” like the Fort Worth section of the Barnett Shale, saw declines in production that no one could have imagined.

But the banks that had lent all that money to the energy companies needed their loans repaid, so energy companies had to keep drilling new wells to maintain production volumes. It looked good on paper and kept stock prices at reasonable levels for a few years, but with a couple of exceptions, nearly all of the gas companies have seen their stocks nosedive in the last year.

 Geologist David Hughes had this to say in the article.

“What you have to remember when looking at a shale play is that drillers head for the sweet spots first, the places with the most accessible quantities of gas,” Hughes said. “When the first few wells come in, a leasing boom follows. But the majority of the wells drilled are not going to be in the sweet spots — maybe only 15 percent will be. So when we look at the drop in the Haynesville play, what we’re seeing is that if the sweet spots are drying up, drillers wind up going after less productive areas in the play. But with the cost of each new well in the Haynesville at about $9 million — and that doesn’t include the leasing rights or costs of pipelines and so forth — and the price of gas at $3.30 per thousand cubic feet, who in their right mind is going to keep drilling?”

“You need to drill 1,500 new wells every year, each of which has the same average first-year production of a 2011 well, to simply keep [total] production flat.”

When they start exporting LNG, and they will, the industry will be looking to drill in every nook and cranny to get natural gas. The oil and gas industry will reap the profits.

The drop in price, however, encouraged a lot of industries, including power companies, to retrofit their plants for natural gas rather than coal or oil. And without an abundant supply of gas over the long haul, that may prove very costly for consumers once the surplus of cheap gas is gone. Add to that a new wrinkle that not many people saw coming — the exportation of natural gas to countries willing to pay a premium for it — and the cost of natural gas in the United States could increase tremendously in the next five to 10 years

Americans get ready to be screwed in every way!

To read the Fort Worth Weekly article Click here

Wake Up People, They're Back!!!!

Flower Mound it is time to wake up. Last year Williams sold their assets to Premier Resources and guess who has been making the social scene attending fundraisers in Flower Mound?

Yep, Premier.

Should you be worried? Two words that should always be in the back of your mind.....

LNG Exports!

Related Articles:
click here to read about refineries popping up to convert natural gas to LNG
More Articles
click here
click here

HB 1496 Must Be Stopped!

This bill was filed by Representative Van Taylor out the Plano area of Collin County. On the Texas Railroad Commission Site, there is no drilling activity at all in his area! So why would he file a bill like this? A good question to ask him.

HB 1496 is a bill that will weaken the power of municipalities and even counties to regulate and zone any and all oil and gas operations in their jurisdiction. Don't be fooled by the language stating "property rights". We all have property rights (and some have had theirs already taken away for oil and gas) but all property owners and industries wanting to do business within the limits of a town or city must abide by some type of zoning ordinances. Without these zoning ordinances there would be rock quarries, cement plants, pig farms, dumps, adult book stores etc. on every corner. So why should oil and gas get to override these ordinances?  And if oil and gas is allowed to be exempt from ordinances, do you think the other industries above won't lobby for the same right?

Folks, this bill will open Pandora's box.

Please write your legislators

Listed below is contact information:

For Flower Mound area:

Representative Tan Parker

Senator Jane Nelson

Filer/Author

Representative Van Taylor

Energy Resource Committee Members:

Rep. Jim Keffer
Rep. Myra Crownover
Rep. Lon Burnam
Rep. Terry Canales
Rep. Tom Craddick
Rep. Tony Dale
Rep. Phil King
Rep. J.M. Lozano
Rep. Chris Paddie
Rep. Ralph Sheffield
Rep. Gene Wu

HB 1496 Is A Bad Bill!!!!

We knew it was coming. This is a bad bad bill! Once again they want to take away municipalities authority to zone gas and oil. They just got a little more creative with their wording this time around.
Click here for more info

For updated info and contacts for Legislators click here

Keep Watching For Legislative Information

The Texas State Legislative Session has begun. It is important that everyone keeps on eye on Austin.

We will be posting information on legislative bills that involve accountability, eminent domain and property rights, health and quality of life issues, property values, legal issues, zoning issues, air quality issues, water and soil issues etc. that are oil and gas industry related.

We will also post information on who to contact and how to contact our elected officials in Austin.

Stay tuned.......

Frack Attack National Summit, Dallas, TX March 2-4

Stop the Frack Attack National Summit will be held in Dallas, TX from March 2nd-4th, 2013. 

Activists, lawyers, scientists, community members, landowners, will come together to work, share, and learn about the impacts of fracking.

For more info go the the links below:

TXSharon has more info. click here
Stopt the Frack Attack website. click here

One Step Forward, Three Steps Back...

Is anyone else experiencing Deja Vu? Last night our new council had the audacity to appoint Jean Levenick to Place 5, the seat Tom Hayden left to run for Mayor. We heard it was a unanimous. So  basically we have the same majority we had during 2008-2010, (Bryan Webb will now play the role of Mike Wallace).

For us here at FMCAUD, this brings back memories of the "old" days when council members said one thing and did another AND Disrespected their office and the people of Flower Mound. (Don't forget to read the comments.) Apparently, it seems others are shocked and angered by this decision since we have received many phone calls and emails on this topic today.

There really isn't anymore to say that can express our disappointment in this selection when there were so many qualified prospects to choose from. Click here for a link to all information on Jean Levenick that has been posted on this blog.

Why would anyone want to take one step forward and three steps back?