03 Mar What a Crazy Week
“South to Texas “
Last week, I picked up one of my vehicles in Tacoma, WA to drive to Ft. Worth from Alaska. What was originally a 1600 mile planned trip through the Rockies turned into a massive rerouting due to “second winter” weather throughout the mid-continent. Had to add another 1200 miles, which included backtracking after the first day to get to the West Coast, LA traffic, and the average extra $2 per gallon for fuel through CA. 2800 miles driving in 4.5 days is no fun, and will not do that again just to save about a grand!
OK, let’s get to the oil prices.
A few weeks ago I wrote that prices would spike in February due to Ukraine-Russia and lower inventory…and they did! I was anticipating $115 WTI for a day or 2! (LinkedIn and Facebook posts). We hit $128. Saying that, prices have dropped quickly since last week to where today WTI is in the mid-90’s. Honestly, I feel better that things have settled down, even for producing assets! It was like when you throw a party and then someone gets “crazy” and the whole party feels anxiety.
We predicted early this year that we would see a spike, but still anticipated lower prices starting in Q2 as inventory increases and weather improves for development. I believe we are still on that trend (as well as the EIA).
Now that I’ve landed in Ft. Worth permanently and the industry is settling down, I think I can finally sleep! We will have new programs and leases coming out next week. If you’re looking for working interest in a program currently in field development, check out ID 1215 on our website.