Oil and Natural Gas “Boom” vs. “Bust”

Oil and Natural Gas “Boom” vs. “Bust”

By Elliot S. Fitzgerald

 

 

 

All of West Texas is buzzing thanks to the recently increasing oil and natural gas production on the Cline Shale Zone. The word “Cline” in the words “Cline Shale Zone” is just simply the proper name of the specific West Texas Shale Zone that this article is talking about. And all that a “Shale Zone” is just a fancy way of specifying a specific land Region, located in a certain quadrant of the United States, where oil and/or natural gas drilling occurs on a routine basis. There are approximately forty eight such Shale Zones located throughout Northern, Southern Eastern and Western United States. Patters in the oil and natural gas industry’s production levels can often usually be charted onto a grid. Using a dot matrix grid, rising or lowering level patterns are charted/places onto the dot matrix grid and then measured in time increment cycles. {{more}} Sometimes, the production level cycles can be measured from one month to the next. Other times, the production levels can be measured in larger grouping increments, such as perhaps three month block cycle increments, for instance. No matter whichever particular increment system that a person uses to follow a cycle, the main objective is to attempt to spot recurring patterns, which then allows the person doing the measuring to determine whether a particular market is either a “growing market,” a “stagnant market,” or a “declining market.” By measuring the time block increments in this way, the person doing the measurements is usually trying to predict ahead of time the overall financial future of a specific Shale Zone. By Measuring oil and gas statistics in this way, it allows Oil and Gas analysts the opportunity to predict ahead of time a specific market’s likely overall realizable potential. A rising grid pattern over a certain set period of time typically indicated what is considered in the Oil and Gas industry to be a “Boom.” A declining grid pattern typically indicated a “Bust.”