O'Brien Energy Resources Corp., a privately owned oil and natural gas exploration company, has announced the drilling of 2 new wells in Meade County, Kansas. O'Brien has contracted Duke Drilling Company to move in to drill the wells back to back-on-separate leasehold locations beginning on May 11th. As of this release, O'Brien is one of the few exploration companies drilling in Kansas during the month of May.
"We are happy to be putting hard working Americans back to work in the oil patch," says Joseph Forma, President of O'Brien Energy Resources. "We are mindful of all the health risks and are taking every precaution to keep our contractors and workers safe."
2020 has been a very rough year for the oil and gas industry. In January, before the first COVID case in the U.S. was diagnosed, a political war between Saudi Arabia and Russia drove prices down significantly. An 11th hour agreement between the countries firmed prices slightly, but the global impact of the virus was just around the corner. In a supply and demand market such as oil, a softening of global pricing due to lower demand was inevitable. Crude oil prices are down approximately 60% since December.
O'Brien Energy Resources has felt the economic impact of the COVID -19 crisis and has taken advantage of an EIDL loan available to them from the SBA. In addition, O'Brien has joint venture partners who remain active in the market.
The U.S. oil and gas industry has worked for decades to achieve energy independence and curb reliance on foreign crude imports. The COVID-19 crisis has virtually halted domestic exploration and only very few companies can continue to drill, fueling concern about the future of short-term U.S. production.
O'Brien Energy Resources has been in business since 1990 and is a conventional driller that operates over 75 wells in 5 states. O'Brien uses the services of over 100 vendors and contractors, from drilling companies and service companies to engineers, land men, geologists, and contract pumpers. According to PwC, the oil and gas industry supports over 9.8 million jobs nationwide, approximately 5.6% of the workforce.
"It is critical that independent exploration companies like us continue to drill for new reserves. Companies like ours are at the core of an industry that is vital to the economic survival of this country," says Mark Eddinger, Executive Vice President of O'Brien.
O'Brien Energy also sees other opportunities in the market, including purchasing existing oil and gas production. "It is strategic for us to increase our reserves while demand and pricing is low, and we believe that there are small producers that may need to exit the market," says Mr. Forma.
Source: O'Brien Energy Resources Corp.
Date: May 13, 2020