The Things We Worry About.

Oil & Gas Journal is reporting that the proposed Obama budget is targeting the oil and gas industry. You can to go the link to read the details.

I get a chuckle out of all of this. Right now there is renewed anxiety by some folks elsewhere that the oil companies in North Dakota are going to quit drilling in the Bakken once they get everything tied up in production, holding leases by production. First of all: that isn't going to happen. Most of the Bakken-centric operators have nowhere else to go to drill. Once they stop drilling in the Bakken, the game is pretty much over for them. Unless someone knows where KOG plans to drill outside of the Bakken. Or Oasis.

Folks elsewhere would be better off working with their state and federal legislators to minimize new taxes on the oil and gas industry. Nothing will slow down drilling faster than increased taxes, loss of industry-wide incentives, and more regulations. And, of course, even if drilling continues, increased expenses --> decreased royalties.

But do what you want.