Every time there is an uptick in oil futures, I start saying to myself "maybe we're about to start moving forward"; but we keep slipping back. It gets harder and harder to be optimistic about things getting back on track relatively quickly. For those that have not seen it, the following was in the "WHAT'S HAPPENING IN EXPLORATION" column on page 25 of this month's WORLD OIL magazine:
> > >Sign of the times.When adjusted for inflation, the price of crude oil remains at a 50 year low. Petroleum Technology Transfer Council (PTTC) Chairman Robert Nance said, "Many believe (this crisis) is the most severe depression in decades." In response to the current low-price crisis affecting the E&P sector, PTTC announced it would structure "most, if not all, of its planned 1999 activities to address 'survival' needs of the industry."
Known as the Industry Action Crisis Plan, PTTC regional technology workshops will focus on survival methods, such as improving cost efficiencies and identifying "best practices" for operating under economic-crisis conditions. Although technology has helped reduce finding and producing costs, such costs are still too high to economically find or produce oil in most regions of the U.S. PTTC will also compile a report concerning effects of the crisis on the U.S. petroleum industry. For more information, go to www.pttc.org or call 1-800-843-7882."< < <
It would appear that PTTC does not expect the problem to abate any time soon.
Hopefully the defensive and survival measures taken by Rod and other operators that do not have public corporation resources will get them through the crisis.
Beter days are coming, but apparently not quickly.
Best to all.
Steve |
