Do we still need exploration? With recent periods of weak energy prices and such large production increases from the Permian Basin, many question the need. I believe that several macro trends are developing to build the case for another bullish period for energy prices and the need for additional supply provided by our exploration efforts. Several recent studies have shown the precipitous drop in exploration capital spending in the past several years is resulting in the lowest reserve adds in decades. At the same time, OPEC does not have spare capacity. Iran, facing U.S. sanctions on its oil exports, cut production by 376,000 bpd in September versus May, and has said OPEC and Saudi Arabia are not able to make up for a total loss of its exports. “There is no spare capacity,” Iran’s OPEC governor, Hossein Kazempour Ardebili, said last month. Among other OPEC members, production fell by 189,000 bpd in Venezuela and by 17,000 bpd in Angola. At the same time Europe, including Germany, is now seeking greatly expanded LNG import projects to reduce dependence on Russia. No one can predict the exact tipping point from over supply to under, but clearly we are getting close to that point and your new exploration projects will be in demand. So take heart!
This month’s luncheon speaker on Wednesday, November 21st, at 11:30 AM at the Cascades Golf and Country Club. Our own Nick Pollard discusses “A Microseismic Case Study: Cotton Valley Taylor Sandstones, Overton Field, Texas" Nick’s talk is relevant to work of many in the Society and he recently presented this at the GCAGS Convention. Let’s have a great turnout for Nick!
Just a reminder that ETGS will recognize our individual and corporate friends of the Society for 2019 on signage at our meetings beginning in January and on our website as well. Annual individual gifts of greater than $25 and corporate gifts greater than $100 are recognized. Gifts given in the 4thqtr. 2018 will be included in the initial recognition and will then be updated on a quarterly basis. These annual tax-deductible gifts allow the Society to provide short courses at reasonable costs to our members and College scholarships to promising geology and geophysics students. A convenient donation link is available on our website. We welcome any thoughts and feedback on this effort or other ideas regarding speakers or events for the Society.
November 1, 2018