Recent analysis conducted by Rystad Energy suggests that if hydraulic fracturing were banned on U.S. federal acreage—in accordance with the stated policy goal of at least one Democratic presidential candidate—the result would be a widespread shift of capital from federal to private and state-owned acreage in a bid to replace the lost oil, natural gas, and liquids volumes. In other words, a potential prohibition would likely have little immediate impact on nationwide oil and gas production figures.
“Even in the long term, the impact might be quite negligible as seen from a greater industry perspective,” says Artem Abramov, head of shale research at the Oslo, Norway-based international energy research and business intelligence company. “However, the effects of such a ban could have stronger negative effects on one key shale-producing region in particular—the New Mexico portion of the prolific Permian-Delaware Basin.”
“New Mexico has the highest relative contribution to activity on federal acreage, where the share of federal lands has been fluctuating at around 60% in recent years,” says Abramov. “Both Wyoming and North Dakota saw the share of federal acreage, relative to total activity, at close to 25% in the three-year period from 2017 through 2019, whereas horizontal activity on Colorado’s federal land is insignificant.”
We are coming down the home stretch and spring can’t get here quick enough. This has been overall a very mild and dry winter, but March can sometimes surprise us with a few cold days. The drivers have caught up and are pretty much on schedule, so if you are a will call please call the office immediately and get on the schedule so you aren’t missed. Enjoy the last few days of winter and stay warm.
John Buller and Sons