Houston, TX (PRWEB) April 25, 2012
It is easy to assess spikes in gasoline prices and assume the worst about the state of energy production, both in the U.S. and abroad. In reality, however, fuel production is a complex matter that has many components in play. While current gasoline prices may be high, for example, there are actually many promising signs in the oil and gas production industry. Reuters reports that a mild winter served as a tremendous boon for oil production, particularly in areas like the Dakotas. According to Franklin C. Fisher, Jr., a retired attorney and veteran of the oil and gas production industry, these reports give ample reason to be optimistic about the future of American energy production.
“For many people, it is tempting to look at unrest in other parts of the world, or in escalating gasoline prices here in America, and despair over our nation’s future as a producer of energy,” says Franklin C. Fisher, Jr., who is an energy investor and oil consultant in the Houston area. “Reports like Reuters are ultimately very affirming as they also remind us of the many positive factors working in our favor. Even something as seemingly innocuous as a mild winter can actually have a tremendous impact on our oil and gas production; both positive in the instance of oil and negative in the instance of natural gas pricing.”
The Reuters report quotes several leaders in the oil production industry, including Denbury Resources Inc.’s Chief Executive Phil Rykhoek. Ryhoek says that his company, one of America’s large, independent producers, is “increasingly optimistic” about fuel production in 2012, following a better-than-expected first quarter.
Both Rykhoek and Fisher base their optimism on promising, national first-quarter numbers, which are, according to Reuters, largely attributable to the mild winter. The article notes that many oil companies are increasing their focus on liquids over dry gas, citing high volumes of output in both North Dakota and Texas. Indeed, it was the tame Dakota winter that helped lead to such a significant increase in oil production in 2012’s first quarter.
But it is not just the first quarter that has these oil experts excited. Denbury’s production numbers for that period were up 12% from last year, which has ramifications not just for a higher-than-expected first quarter but for their production for the rest of 2012. Reuters notes that the drilling areas that have thus far; but, also proven so rich and fruitful are continuing to show promise, prompting experts like Franklin C. Fisher to speculate that the remainder of 2012 will prove similarly positive.
“There are always a lot of factors in play when it comes to production, and there’s no use in trying to precisely predict the future,” says a cautiously optimistic Fisher. “However, many oil oriented companies are on track for an excellent 2012, which is really good news for everyone.”
Franklin C. Fisher, Jr. is a Texas-based retired attorney with a significant history of consultation in the oil industry. Mr. Fisher works in Houston, Texas and consults on behalf of some of the area’s leading producers of oil and natural gas, plus ancillary industries.