You in O&G country? The bargain bin shopping of midstream panic selling last summer has been paying off the last month.
What's funny is that while we were still living in CA and splitting our time between there and AZ, when I would mention that gas cost less in AZ pretty much everyone was surprised to hear that. They thought everywhere in the Country was paying $3+ a gallon like in CA.Over 3 bucks here in NorCal...
That's why oil companies applied for and were granted thousands of permits in the waning days of Trump's Presidency. Permits that will last them quite a while.I know guys still getting 8-9 figure backing to start up new oil companies...provided they avoid asset purchases involving federal land and their business model is focused on maintaining/optimizing production and cash flow rather than frenzied drilling/completions and flipping the company.
No matter how much they want to, they can't ban oil & gas production in the US unilaterally, not on any rapid timeline, would require coordination with the states. And yes, while production decline is a thing, they aren't going to suddenly make everyone P&A every well on federal land, but I do see a federal leasing ban coming. Operators would still be able to drill & complete on existing leases at some degree.
Most likely if there's any fucking sense remaining (which is questionable), they will probably pick away at it by going after fresh water usage, emissions limits, etc. before they just give a blanket "fuck you" to the entire industry in an already crushed economy.
But what do I know.
Yeah, only place I've lived personally that was more was Hawaii.What's funny is that while we were still living in CA and splitting our time between there and AZ, when I would mention that gas cost less in AZ pretty much everyone was surprised to hear that. They thought everywhere in the Country was paying $3+ a gallon like in CA.
CA politicians REALLY dodged a bullet a few years ago. The Carbon Tax they had voted for and which was going to add close to a dollar a gallon just happened to take effect right as gas prices nationally took a nose dive. So while everyone else saw their prices drop, in CA they basically stayed the same. So consumers thought the Tax had zero affect on pricing. Absent that lucky drop and had prices gone over $4 a gallon there would have been lynchings in Sacramento.Yeah, only place I've lived personally that was more was Hawaii.