Harold, Regarding future oil and NG prices, I am confused.
(1) The Texas RR Commission is reputed to have good oil and NG data. The EIA data for Tesas oil production is around 40% higher than the RR Commission data. If the nationwide adding of other stuff to crude production data raises the level by 40%, crude peaked some time ago.
(2) Recent studies fix the average global oil field production decline rate at around 6.5%, then the world needs over 5 million bbls/d of new production each year to stay even.
(3) A recent study of Bakken oil production from wells drilled before 2011 shows a production drop of 46% since then. Sample size about 2,400 wells. Production lost about 165,000 bpd.
(4) Barnett shale NG is said to be declining at 1.7 bcf/day.
Harold, We have adapted to our new environmrnet. The locals are friendly and the city is very interesting with a great variety of restaurants, clubs, music, and entertainment. My wife and like classical music and there are usually several concerts per week. The music academy has a very high quality and the concerts are often free and otherwise inexpensive. Regular concert ticket also include public transportation. When the weather is good we usually walk since the distances are relatively small. Last month we had the ground breaking for the new apt house where we have bought an apt. We were invited and asked to respond with the number of guests we would bring. At the party, which included several hours of very good food and drink, I asked the construction company chief how many of their employees were invited to the party. He said all. He claims they use no subcontractors, only in-house people. I chatted with a plumber and an engineer.
Harald, Hello. I own a couple of MLPs but I still am unsure about the financing. Have you studied the long-term result of paying more dividends than earnings?
One big news item: After a few days of test production, the giant Kashagan oil field is closed until sometime in 2014.(Gas leak.) Discovered in 2000 with massive oil reserves which include very high pressure hydrogen sulfide rich NG and stormy ice floes in winter, this field has burned about $187 billion so far. The we are awash in oil folks are still using it as one of their examples of plenty.