Permian Basin

Not only oil prices have translated to higher gas and diesel and jet fuel, but natural gas prices have soared overseas.

They're much more tame here because we get so much of it via the Permian Basin where they're doing you know, a massive amount of drilling.

And so our natural gas prices are well behaved.

But overseas, they've got the compounding effect across the entire energy spectrum of pushing up inflation.

Paul, let's first just start by kind of reviewing where the company stands production-wise here and now.

You are operating mostly in that central basin in the Permian Basin.

The current production I'm seeing around 20,000 BOE per day.

Give us an understanding of what the mix is between oil, gas, and GLs, please.

All right, gentlemen.

Well, I think we'll wrap it up there for today, but this was a great introduction into Ring Energy.

I think you laid out a great case of growth of the testing you're going to be doing, some of those lateral pay zones and some of the long horizontal wells, being able to access areas that maybe traditionally weren't looked at, looking at bolting on some land in the central basin of the Permian Basin and continuing to both invest in growth, pay down debt, and set yourself up for a big year this year and next year.

So we'll definitely keep following along with it here at the KE Report.

Around Midland, Odessa, we've had earthquakes and people, oh, it's this underground pressurized water.

Well, guess what? I had a Permian Basin Company tell me just about two months ago, man, this water now can be valuable and be worth something.

That's what we've thrown on the ground.

We take it out.

Neither group is claiming an answer.

Shortly before 6 this morning, a drilling company in the Permian Basin conducted a limited restart at one suspended well.

The restart was authorized only to test whether the well could circulate drilling fluid without returning to full operation.

According to a preliminary report filed with state regulators, seismic monitors detect a localized disturbance less than 10 minutes after the pumps begin operating.

Some estimate that the reserves may be exaggerated by as much as 220 billion barrels.

Even if this huge reserve figure was accurate, Venezuelan oil is not the high-quality, light-sweet crude found in the US Permian Basin.

Venezuelan oil is heavy and sour, with the consistency of molasses and a high sulfur content.

It is quite similar to the oil extracted in Canada, which is trading at around $43 per barrel.

You know, Lance, I was thinking, I'm jumping around, guys, my ADHD.

You know, in Texas, right, they have the Permian Basin where they drill a lot of oil?

Yeah.

Why doesn't the state of Texas just take some oil, Refine themselves and give gas cheaper to the Texans, people in Texas.

I would have

thought it would have been a state like Texas that has a gigantic, the Permian Basin, that is the largest natural resource, I guess, for oil in the United States.

There's a really interesting book you can read about this called How to Lie with Statistics.

It's when you take something that's technically true, it has the essence of truthiness to it, but it's misleading.