Is this article true that the oil boom in Texas is coming back? (Houston: leases)

[FoodPornHater87]

Texas Oil Industry Gearing Up For Massive Oil Boom (It's Back!) | Crude Oil Jobs- Oilfield Jobs In The Oil And Gas Industry. Crude Oil Jobs Is Your Oilfield Headquarters For Energy Jobs And Recruiting.

This article from Crude Oil Jobs has been shared around Facebook all day today and I was wondering if this article happens to be true on the oil boom returning to Texas or if it is not true at all.

[Westerner92]

I mean, considering the source of the article is "crudeoiljobs.com", you'll have to consider that it's a strongly biased source. They aren't lying about the numbers, but significance of those numbers is questionable to put it mildly. That article is the equivalent of a UT football fan site saying "Despite a few rough years, the Longhorns had a good recruiting season, so they're bound to win the national championship. Join the excitement and buy tickets through our website!"

[Westerntraveler]

I think the article is premature in saying its gonna be booming again real soon.However, there will be another boom at some point.There is just no way to tell when though.

[joqua]

This recent optimism in a resumption of a 'boom' in the Texas oil patch may be a fueled by recent articles in various news sources by Chevron. Chevron has long been one of the major producers in the Permian Basin region of west Texas.

To wit:

Posted: Tuesday, April 26, 2016 HOBBS, N.M. (AP) — Chevron Corp. plans to move from massive, billion-dollar oil and gas projects to the Permian Basin in West Texas and eastern New Mexico.




...by 2020 Chevron could pump up to 350,000 barrels a day from the Permian — almost triple its current 125,000 barrels a day.

The Permian Basin is around 250 miles wide and 300 miles long, across West Texas and southeastern New Mexico. It encompasses several sub-basins, including the Delaware Basin in southern Eddy and Lea counties and the Midland Basin in Texas.

[Trainwreck20]

'Boom' may be a bit overly optimistic, although I have seen some forecasts that indicate a slight increase in crude prices. Nothing 'booomish' about them, though, more a stabilizing slightly higher than where it is now.

[turf3]

Well, if I understand correctly, the current price for crude oil is lower than the production cost for fracking fields, and (don't know about this) may be below production cost for existing non-fracking fields - although somewhat above the production cost for Saudi fields.

Why would anyone expand their oil production in the US right now, when doing so would mean they do more of a money-losing operation?

Wait till the Arabs decide to tighten the spigot again (maybe when the Russian oil industry collapses?)

[Trainwreck20]

Originally Posted by turf3

Well, if I understand correctly, the current price for crude oil is lower than the production cost for fracking fields, and (don't know about this) may be below production cost for existing non-fracking fields - although somewhat above the production cost for Saudi fields.

Why would anyone expand their oil production in the US right now, when doing so would mean they do more of a money-losing operation?

Wait till the Arabs decide to tighten the spigot again (maybe when the Russian oil industry collapses?)

There is no set cost of production - it varies by how much cost is already sunk into the production and by the specifics of the field and the drilling company. If you own idle equipment and have the leases, it may still be useful to put that to work. Also, there is 're-fracking' of existing wells that cost way less than the initial well opening.

There is also some benefit to limited expansion, I suppose, in case prices suddenly go up or even just spike for a bit - you are then ready to 'turn on the spigot'.

[kidicarus89]

Anyone who claims to know what prices will be by the end of the year is lying to you. Yes, they'll be another boom, but whether its 2,5,10 years out, nobody knows.

[radiolibre99]

I think the better question is has everything somewhat stabilized? Can we expect this to be the new normal in Houston until the next boom sometime in the future?

[justinjj1]

Absolutely not, that's just a clickbait article on Facebook. Anybody who knows anything about the oilfield can tell you that its not coming back anytime soon. At least within another year or so.