Friday, June 7, 2013

Is There Oil Down There?

 

 

With the expanded use of fracing, there is a mini oil boom in the area.  Keep in mind, a drilling rig is a boom around here and there are usually 2-4 rigs drilling. 

The oil companies have been approaching people about going on their land for seismology testing,   Lots of the people have been turning them down, well been wanting money for them to drive on their land.

It is so dry that any travel on grassland destroys it.  The ranchers/landowners are wanting compensation fro damage to their land.

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These big ole thumpers can cause lots of damage as they drive over the land shaking it.  Where they drove on some CRP land, one can still see the tracks where they drove, two years ago.  At existing wells thee is a big scar, for the plot and the access road.  If the hole is dry and they leave, the land heals real slow and is worthless for some years unless in a government program.

It is interesting, greed does overrule common business sense.  Some of the oil prospectors are kind of dumbfounded in being turned down.

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For the rancher, it is his land for income.  Without the land, the rancher earns no money.  With the drought, the land is at about 20% usability.  Any damage adds to the loss for the rancher. 

Oh….. expect the big mac to jump in price, except they are usually milk cows not prime beeves.

Have a good weekend.

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