The Demand for Drilling
World events have a direct effect on the price of oil: OPEC, wars, politics, pandemics, and religious unrest.
The key to a rational oil market price (if there is such a term) is a balance of reserves, inflation, political prudence, and demand. Extremely high or extremely low prices are beneficial to no one.
As the charts below indicate, when world events are awry or the domestic environment is skewed, oil prices increase or decrease to the extreme creating a negative situation for both producers and consumers.
For the 21st century, the optimum petroleum price level (the point at which producers in the United States can profitably produce and consumers can willingly afford) ranges between $70 and $75 per barrel. Our country is fueled by fossil fuels. Approximately 81% of our total energy comes from oil, natural gas, and coal.
The graphs below show the correlation between oil price and the number of wells drilled. We then drill down to the number of wells the Geo. N. Mitchell Company produces.
Drilling wells is relative to the ups and downs of oil prices.
Price and performance is the foundation of a successful drilling project. Contact Ryan Mitchell to discuss your next project.