Drilling bust | Arkansas Blog

Saturday, March 14, 2009

Drilling bust

Posted By on Sat, Mar 14, 2009 at 4:16 PM

The big oil-and-gas exploration boom is over for the time being on account of slumping prices. But busts have their upside.

“The big bonanza is over,” said Jay Ewing, the completion and construction manager for Devon Energy in the Barnett Shale field here, where so far this year his company has brought its rig count from 35 to 8. “Everyone is really shocked how fast everything has turned.”

Energy experts and company executives warn that oil and gas companies now cutting back on investments will be unable to respond quickly to a future economic recovery. John Richels, Devon’s president, said that if the slump lasted two years, it could then take 18 to 24 months for companies to reassemble rig crews.

That means a glut could rapidly turn to scarcity, sending energy prices soaring again. Already, experts are predicting that lower domestic gas production by the end of the year will require increased imports of liquefied natural gas from places like Qatar.


Sign up for the Daily Update email
Favorite

Comments (9)

Showing 1-9 of 9

Add a comment

 
Subscribe to this thread:
Showing 1-9 of 9

Add a comment

More by Max Brantley

  • The suffering children's open line

    Until it's fixed, nobody is doing enough to resist the Trump administration's cruel and thoughtless handling of asylum-seeking children.
    • May 27, 2018
  • Arming teachers: An insurance complication

    Gun lovers in the Arkansas legislature are spoiling to put more guns in classrooms at the earliest opportunity. Today, the Washington Post reports a complication — from insurance companies.
    • May 27, 2018
  • Razorbacks plan a return to real grass in 2019

    I don't know why the news of a return to real grass at Razorback stadium seemed like such good news to me. Old fogey, I guess.
    • May 27, 2018
  • More »

Readers also liked…

  • Women's March planned in Arkansas to mark Trump inauguration

    Speaking of Donald Trump and in answer to a reader's question: There will be a women's march in Arkansas on Jan. 21, the day after inauguration, as well as the national march planned in Washington.
    • Dec 30, 2016
  • Trump's strangulation of Obamacare

    If he can't kill it outright, Donald Trump will do all he can to cripple Obamacare. Vox has detailed reporting on deep cuts in federal spending that support nonprofit agencies that help people sign up for coverage under the Affordable Care Act.
    • Sep 18, 2017
  • Campus gun bill clears committee

    The so-called compromise amendment that will allow anyone 25 or older with a training certificate carry a concealed weapon on public college campuses was approved in a Senate committee this afternoon.
    • Feb 21, 2017

Most Recent Comments

Slideshows

 

© 2018 Arkansas Times | 201 East Markham, Suite 200, Little Rock, AR 72201
Powered by Foundation