Amarillo, TX (Vocus) March 27, 2009
2008 ended with very low commodity prices for oil and natural gas. Integrity Natural Resources, LP along with many experts believe this is a temporary situation. Rigzone and many petroleum economists are predicting oil to be in the $80 to $90 range by the end of 2009. Integrity Natural Resources, LP is using this temporary lull to utilize drilling and ancillary completion services that had been bid up to unreasonable cost levels or often unobtainable, during the recent price driven drilling frenzy. Integrity Natural Resources, LP is using this now favorable drilling environment to drill wells that can last well over twenty years; it would make no sense to slow down drilling for a short term drop in prices. Once the current recession abates, prices will immediately go up. The supply and demand imbalance that existed during recent healthier economic times, causes oil to go to $150 per barrel, has not been resolved. Profligate government spending will most likely create increased inflationary pressure that will also drive up commodity prices. As to this current administration's stance on oil and gas exploration, further constricting supply, and you have the perfect storm for massive oil and gas price increases.
With the well documented problems on Wall Street and the flight of capital out of these markets, Integrity Natural Resources, LP has experienced unprecedented demand for its drilling projects. The bottom line is this: Integrity Natural Resources, LP expends significant resources and expertise on the front end of each project, finding the best leases in proven high production areas. This diligence has lead to very successful and sought after drilling projects. The best drilling projects will continue to be rewarded, regardless of fluctuations in market prices. Vocus Small Business Edition