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#010: Keystone XL, Eagle Ford, and Natural Gas with Forbes Writer David Blackmon

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Forbes.com writer David Blackmon joins us to discuss the latest on the Keystone XL, Eagle Ford Shale, and the surprisingly strong natural gas market. Plus, I get all up on my soap box talking about how insourcing your content is not optional in this week’s Pay Zone Power Move.

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The more content you produce, the better you get. And the better you get, the bigger your tribe grows. – @JamesHahnII (tweet this)

EPA has done two studies and concluded Keystone XL would have no significant environmental impact. – @GDBlackmon (tweet this)

It’s going to take 20 yrs just for the initial drill out of the Eagle Ford with current spacing rules. – @GDBlackmon (tweet this)

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Links Mentioned

David Blackmon’s articles at Forbes.com
Follow David on Twitter
FTI Consulting
Keystone XL Review Extended, Delaying Final Decision Until After 2014 Elections
The Oil and Gas Law Digest and @OGLawDigest
Lord and Taylor
Hughes & Stuart Marketing Communications
Free 90 Minutes Digital Coaching Session
The Top 5 Marketing Mistakes Oil & Gas Operators Make – And How to Avoid Them

Pay Zone Power Move

James Hahn II All right. If this is your first time joining the tribe for the podcast, the Pay Zone Power Move is a digital marketing technique, tactic, or strategy designed to help you move the needle online in your business.

This week, I want to talk about the necessity. I want to call it a necessity at this point. We provide a lot of different levels of content services for people here, but I’m going to go ahead and say that this is the necessity.

If you want to kill it online, if you want to drive traffic, if you want to build your tribe, grow your brand, watch profits soar, this is how it’s done through insourcing content. What the heck does that mean though? All right, so insourcing content meaning that the content that you are producing as a company is being written by the people within your own organization.

And so, when we go back and look at — if any of you all have never heard of Drillinginfo, it’s a company I used to work for. They gave me my big break here and that’s the reason I even have this company today. Drillinginfo is an international oil and gas intelligence company and they are amazing because they gave me the scissors and said, “Run online.”

The thing is that while I played a large part in this success of Drillinginfo’s online strategy, I was really truly just riding the coattails of a whole bunch of geniuses that work for the company. I used to send out a Monday morning motivation email to everyone who wrote for the blog, which by the way was more than 50 people at the company — the CEO, Allen Gilmer; the president, Ed Perry; the co-founder, Mark Nibbelink; senior level managers, everybody that wrote for the blog, and why is that important?

Well, I just talked about how I rode the coattails of all these geniuses and the reason is because I would’ve gotten nowhere without amazing content. The amazing content came from those people that founded the company, those people that run the company, those people that are solving problems and creating solutions for the clients on a daily basis.

And so, like I said, there are several different ways that you can choose to do your content. When someone finds out about insourcing or I tell them about it for the first time, the big pushback is always, “You know, we just don’t have time. We are all so busy. There’s no way that we’re going to be able to be consistent,” and all of these different pushbacks come.

I’m happy to offer the content services in that case, and it might sound weird, it’s not what I want to do. It’s actually the most expensive thing that I can help someone do, is to interview their executives, interview their senior leaders, interview their salespeople, and then go out and produce content for them, ghostwriting it essentially from their own words in those conversations, but you can only imagine how time consuming that is and that’s a very pricey proposition.

A lot of people go with it because they just say, “You know what? We don’t have time,” but here’s the thing. You can’t give what you don’t have. I want to say that again because it’s a key principle that — I guess it’s been drilled into me by several spiritual directors over time and I’ve heard it and it rings true every time. You can’t give what you don’t have.

And so, while I and my team are very good at what we do when it comes to producing content, when it comes to sitting down whether via Skype, personal, or whatever, and I having the upstream oil and gas knowledge that I have, I can extract a lot of phenomenal information and content through the conversations that I have and then keyword target them appropriately, distribute them on the internet appropriately and everything, but it’s still not truly, truly authentic because it’s not coming from within the company.

It’s coming sort of from within the company, but then to us as a third-party content service provider in that case. And then we are doing multiple drafts, sending it back, coming back and forth and everything where the ideal situation would be that your CEO sits down and writes a blog.

Your president writes a blog. The senior leaders at your company, the midlevel managers, the salespeople, the accounting, everybody produces content and that’s how you get over the hurdle of saying, “Oh my goodness, where are we going to get all this content from? It’s going to be impossible.”

Well, if you have even 50 people at your company and each person writes a blog and you post two or three times a week, they’re not going to have to write more than — I’m not good at math, but it’s not a lot of blogs per year. And so, that’s how you spread out the work, but also you get a much more unique perspective from within your business because it’s not always the same one or two people.

Maybe you hire someone to be your social media manager or your content manager or whatever it is and they’re the only ones that write. Well, that’s a problem because they’re the only ones that are contributing to the conversation about your company and they might be really good at it, but they only have two eyeballs.

Well, let’s get hundreds of eyeballs involved or however many people that you have on your team. Let’s spread it across. Because when you spread it across, then it’s authentic and then it really sounds like the company. And not only that, but you’re demonstrating — and we’ve touched on this last week, but you’re demonstrating to your customer base, to your clients, to your prospects as well that this company is a serious company because their CEO takes time to write an incredibly insightful content that helps me in my business.

That says a lot to a prospect when they are able to come to a — maybe they see a link on Facebook, come to your blog, read the thing and they go, “Wow! This was written by the CEO. This was written by the president,” or even one of the top salespeople or something along those lines, but again, the point is that you need to tell your own story.

It’s all about you telling your story and I can help you. I’m not the only person out here that does this. I think I might be the only person in our niche as far as in oil and gas that is really focused on this, but a lot of people will say, “Well, we’ll just hire a journalist to write something for $100,” or whatever it is, “because my time is too precious.”

Well, how much is your time worth if you’re able to write a compelling piece of content that shows that you mean business to your prospects and converts people to be part of your tribe and then gives you the opportunity to send multiple emails per week straight to their inbox?

And then when you do have that big new product release, when you do have that new strike down in South Texas, whatever the case might be, you’re able to go ahead and hit those people up with the announcement and get them essentially ready to invest in your product, buy your services, whatever the case is because they trust you.

They trust you. We’ve talked about this I think maybe even just last week, but what are sales based on? Sales, people buy things from people they like and especially the kind of — not even especially, but they go hand in hand, right? They buy things from people they like and most of all, along with that, they buy from people they trust.

And so, when you are being your authentic self as a company and everyone is pitching in and everyone is building these relationships with your prospects, with your clients through their email inbox on a regular, consistent basis, at that point then the sort of buyer company dynamic goes away and they’d see you as a resource.

I can name many companies in my own profession of marketing that that’s how I see them because they’ve helped me so much. A lot of them haven’t gotten anything in return from me personally other than me talking about their brands on every single phone call that I ever have with anybody, which is the 90-minute digital coaching session.

So again, I am happy to help you with your content and everything, but that’s not my ultimate goal, which sounds silly because I can charge you more if we’re interviewing, if we’re ghostwriting, if we’re doing things like that. Ghostwriting isn’t even an appropriate term because we’re taking your own words and putting them into a written format that is readable and search engines pick up and then shareable and everything like that.

It sounds silly that I would say, “No, that’s not what I want,” because why wouldn’t I want to charge you as much as possible as long as I can? I own a business, don’t I? Isn’t that the whole name of the game? Well, no. I want you to be successful. Certainly, I’ll take the money in the meantime, but it’s not my ultimate goal.

My ultimate goal is to teach you how this is done so that I can come in, work with you, and maybe we start with a ghostwriting situation, or in a better case, we just say, “You know what? Hey, let’s just start cranking out content,” because the more you produce, the better you get and the better you get, the more traction you get and the more your tribe grows, and it’s an upward spiral from that point.

So I hope that Pay Zone Power Moves helps you in your business. I’m certainly not trying to turn it into a commercial for Tribe Rocket, but even if I’m not talking about Tribe Rocket, there are hundreds of people out there that will provide the same content services and you don’t need to waste your time and money with that, with me even if you insource your content.

If you have someone within your company that knows how to SEO keyword targeting, that knows how to do the appropriate distribution of your content, then hey, you might not even need a consultant. You just need to recognize the talents and the strengths of the people within your own organization and maybe put someone in the right place. That’s actually what happened to me at Drillinginfo.

I was fired after a year of sales. I moved into technical writing for a year and they saw that I had a talent and they put me in the right place. So within your organization has a passion for this online marketing? Who in your organization knows how to do these things and maybe even listen to these kinds of podcasts and has a passion for these things, but hasn’t been given the appropriate opportunity yet?

I would encourage you, please give that person the opportunity because it can save you a heck of a lot of money, first of all, but second of all, even every one of us here is an employer at some level and ultimately our purpose over and above making the bottom line should be to make the best people that we possibly can out of our organization.

I will jump off my soapbox for today and again, I hope you enjoy that Pay Zone Power Move. If you did and you found it helpful, you can hit me with an email at james@triberocket.com. You can always tweet me @JamesHahnII.

And now that we have all the contact information out of the way, I’m tired of hearing myself talk. I want to hear Mr. David Blackmon because this guy has some things to say about Keystone, about Eagle Ford, about natural gas, and it’s a fantastic interview, so let’s go ahead and transition over to this interview with Mr. David Blackmon.

Forbes.com Writer David Blackmon on the Keystone XL and More

Joining the tribe this week is David Blackmon. He is a managing director of the FTI Strategic Communications Practice and is based in Houston, Texas. Throughout his 34-year career in the oil and gas industry, David has led industry-wide efforts to develop and implement strategies to address key issues at the local, state, and federal level.

David is currently a contributing columnist for Forbes.com, which is one of the main reasons I wanted to get you on here, and he’s focusing on public policy issues affecting oil and gas industry. He also writes regularly for the World Oil Magazine and Eagle Ford Shale Magazine.

David Blackmon, thank you very much for joining us on the Oil and Gas Digital Marketing Podcast.

David Blackmon You bet. Thanks for having me. Happy Earth Day!

James Hahn II Oh! Is it Earth Day today? Oh man! That’s so retro. It’s like 1994 all over again.

David Blackmon Yeah, something like that.

James Hahn II So here on Earth Day, one of the things that we wanted to speak about, give me an update. You’re out there writing all of the time on Forbes.com and I’m fascinated with everything you put out. Give us an update on the Keystone XL pipeline because there was a major decision to delay that made recently. Is that correct?

David Blackmon Yeah. Basically what happened on Friday, of course, later in the afternoon on Friday when the administration always does its document dumps that it doesn’t want to receive too much media attention, they announced that they were extending the deadline for other agencies in the administration to offer comments related to the State Department’s upcoming report on whether or not to move ahead with the northern part of they Keystone Project.

That deadline was going to be the end of May and now, they had basically extended it past, guess what, Election Day, no surprise there.

James Hahn II I couldn’t have guessed it.

David Blackmon Yeah. I laughed out loud this morning when I got online and there was a report containing a quote from Debbie Wasserman Schultz, the chairman of the DNC, stating that politics have played no role in the administration’s decision. Well, reality is the only aspect of that decision, the only factor in that decision, was politics and everyone knows that.

James Hahn II So help me understand then because I’m an amateur on the Keystone XL pipeline just like anybody else. I remember — it was even way back when I was first starting work at Drillinginfo, which was in 2010 — reading news stories about this thing. Why are we still talking about it?

David Blackmon Yeah. They began the permitting process for Keystone I believe six years ago now. It has been through four different major environmental impact studies and the administration has basically used every conceivable excuse they could find to delay making a final decision on it.

Every one of the environmental impact studies that have been made related to the project have uniformly found that it would have no significant negative environmental impacts and yet the administration continues to delay making a decision for purely political reasons. Let’s be honest. There’s no real reason of anything other than political considerations to delay this project any further.

James Hahn II And how did they do it this time? You said they extended commenting by who?

David Blackmon Well, the process that they have set up, the final step in the process before the State Department — because this is an international project that crosses the border with Canada. The State Department has to be the final arbiter of whether or not it goes ahead.

The administration has set originally a 90-day-period for other agencies within the administration to offer comments for the State Department to consider before issuing its final decision. It allows the EPA, for example, one more bite at the apple. The Department of Interior and any other interested department commerce maybe might have had an interesting commenting to do that.

That was supposed to be the final step in the process before the May 31st deadline and then 60 days later, the State Department was to have issued a final decision. Well, without any real rationale, just on Friday, they arbitrarily extended that deadline, so other departments within the government will have through the end of November, I believe, to offer their comments.

James Hahn II So we need some more meetings about the meetings about the meetings about the meetings.

David Blackmon Right, exactly. Let’s realize, too, that EPA has already twice now performed studies related to this pipeline and both times issued reports stating that the pipeline would have no significant environmental impact, so it’s not like there’s going to be anything new here. There’s no new news to be had about Keystone XL. It’s just a purely political exercise trying to postpone the date of decision until after the midterm elections, which as everyone knows are shaping up to be very difficult for the president’s political party.

James Hahn II So from a Keystone perspective, we’ve gotten pretty down and it is a pretty frustrating and sad story, but I want to look at the positive side of it, too. Let’s say the ideal situation goes through, which it hopefully will, that the keystone gets approved. What are we looking at in terms of job gains, in terms of financial gains? Give us some of the benefits that this will bring to our country.

David Blackmon Well, it’s 20,000 jobs. They’re in the construction phase of the project, all sorts of — we’ve seen studies that project billions of dollars in economic impact, lots of job creation, and the ancillary economic impact that comes from any oil and gas project is extraordinary.

We’ve seen studies over the years that estimate that every dollar spent in the oil and gas industry or the pipeline construction, the upstream industry, the downstream part of the industry generates $3 to $4 million in additional economic activity, so it’s an extraordinary job creator, extraordinary creator of economic development, and the irony here is Keystone is a shovel-ready project.

This is the kind of public works project, public development project that the President supposedly was looking to find when the Stimulus Bill was passed way back in 2009. Of course, eight or ten months later, the President said, “Well, we had a hard time actually finding shovel-ready projects.” Well, here it is. It’s been sitting there waiting for your approval for half a decade now throughout the entirety of the Obama Administration.

This process began actually in the Bush Administration, so this project was already out there to be approved rapidly when the President took office. There’s no finer example of a shovel-ready project that doesn’t even have to be subsidized by the Stimulus Bill or by the government in any way.

The government simply has to get out of the way and all of this development will take place, but for purely political reasons and in order to placate his environmentalist voter base, he continues to delay the project for no good reason.

James Hahn II And so, two points there. First of all, if we don’t get the oil, someone is going to get it and it will be China, right?

David Blackmon Yeah, that’s correct. Yeah, the oil is going to be produced from the oil sands regardless of whether this pipeline goes in or not. Right now, much of it is already coming in to the United States via various smaller pipelines or on trains, on well cars. We’ve seen in the last two years a 400% increase in the amount of oil transported via rail in the United States and across North America. Of course, virtually all of that is due to the lack of enough pipeline capacity or new pipeline development.

Keystone is the single biggest example of that. Once Keystone is complete, 800,000 barrels of oil are going to come down that pipeline to refineries along the Gulf Coast and are to be shipped overseas for refining. All of that creates jobs and creates economic development, and it helps the United State’s economy to continue to recover from the recession.

James Hahn II And do you ultimately see this working out? It’s just Obama can’t let it happen on his watch because of his base? How do you feel that it will work out?

David Blackmon Well, I do think there’s no legal basis for denying the project. The President, you keep thinking he will run out of options, rationale under which to further delay it. My hope is that after the midterm election and he will be a lame duck going into the final two years of the administration, he will finally do the right thing and approve the project so that he could then brag that it got built under his watch and all those jobs were created under his watch.

It does feel like that once the midterms are completed, there won’t be nearly as much political rationale for the Democratic Party to continue to urge the President to delay the pipeline, so hopefully that will happen. If it doesn’t happen, then he’ll continue to make up reasons to delay it until after he leaves office and leave it to the next president to decide. That would be a shame for the country, but certainly you wouldn’t believe it’s beyond the realm of possibility for this president.

James Hahn II I couldn’t disagree. Well, let’s shift gears from this sad Keystone story. Tell me what’s going on down there in the Eagle Ford because I read everything you write on Forbes about the Eagle Ford.

Let’s talk about some good news. What’s the latest going on in the Eagle Ford these days?

David Blackmon Well, the Eagle Ford just pretty much on a daily basis sets a new production record. It’s the second most productive, all-formation in the United States right now behind the Bakken, but most likely we’ll move ahead of the Bakken shale over the next couple of years.

The rig camp in the shale, in the Eagle Ford, is kind of stabilized between 250 and 270 active rigs over the last two years, and you probably won’t see it increase much above that. Any production basin has a limit to how many active rigs it can sustain, so it’s really being drilled out full bore. It just transformed the economy in South Texas.

It’s so gratifying to me because I grew up down there in a small town called Beeville, population of 14,000 people, and it’s the biggest city in the Eagle Ford Shale 25-county region, which is a pretty extraordinary fact in and of itself. In an area that has forever since human beings have lived there been basically economically impoverished, it’s now and has been for two years now one of the very hottest economic development regions in the whole world, so it’s very gratifying.

There are challenges, of course, and the industry continues to work closely with the local communities and the junior colleges and councils of government down there to address them. Obviously, with any hot economic development plate like that, you’re going to have challenges for the communities in the industry to meet.

James Hahn II When you say that, are you speaking along terms of road construction and that thing? Tell me more about those types of things they’re overcoming.

David Blackmon Yeah. Roads have been a pretty big challenge. These are very rural areas, the county roads. Really probably the majority of county roads in these 25 counties are not paved with asphalt or concrete. They’re either gravel or caliche, a chalky substance that we use to pave roads with here in Texas. And so, they’re not designed to carry the big truckloads that the oil industry has to use in order to conduct these drilling operations.

There is substantial damage the companies for the most part try to repair as well as they can and they’re pretty diligent about it, but the counties still see these impacts and it does create some very rough road conditions for the local residents. So there’ve been several different efforts at the county in state level to address that and the state has begun to provide more and more funds through the department of transportation to help these counties deal with this issue.

James Hahn II And at the same time, something like that’s happening, there’s quite a few landowners that are probably getting some healthy transfer payments these days.

David Blackmon Oh yeah. There’s a new millionaire every day in that region. It’s just unbelievable, just millionaires everywhere now in an area where they were not for a long, long time. I even have a friend I grew up with at Beeville who’s become a multimillionaire without even getting an oil and gas lease. He simply has a very high production — very deep water well drilled in to the Carrizo-Wilcox Aquifer in his land and has become a millionaire selling water for the Eagle Ford operations.

The business development down there is transformative in Beeville for the first time in 30 years. There are new housing developments being built as people continue to move into the region workers and other folks in supporting industries. It’s a really amazing thing to see happening.

Another thing that’s really being transformed down there is the rail situation. I talked about that related to the Keystone situation, but railroads transport a lot of things for the oil industry in addition to crude oil. They transport the frac sand and equipment and all sorts of other things related to service industries.

This region in South Texas has seen four major new rail terminals being built in just the last two years, so the infrastructure that’s being built that will last long after this boom is over is just really a blessing to the region.

James Hahn II And for anybody who might be listening, you just used the buzz — not necessarily a buzzword, but maybe a keyword that some pessimists here, they can go, “Oh yeah. Well, this is a boom. It’s going to be over in the next 18 months and then everything will be all right,” that sort of a thing that you hear so often, talk to us about — I mean, I’ve heard that the Eagle Ford is going to be going well into the 2020s, I guess you could say, even into the 2030s because there are so many more wells to be drilled.

David Blackmon Yeah. I’m 57 years old. I’ll be lucky to live to see the end of the boom down there. You have to consider, this region is three quarters the size of South Carolina. This is an enormous play area. It’s going to take 20 years just for the initial drill out under current spacing rules. And then the Railroad Commission will have to consider whether or not to allow another round of drilling on the infield, smaller spacing rules.

In the end, you’re going to have companies going back into wells and recompleting them and re-stimulating them over the years. As production declines, as we’ve seen in the Barnett shale and in most of these wells, you’ll be able to go back in and re-stimulate them at least once or maybe two or three times to increase the production again over the years, so this is a decade-long process.

We had a boom down the same region of a formation called the Austin Chalk, which was kind of a conventional play where you would drill vertical wells and have two or three years worth of production and then they’d fall off. There weren’t that many wells to be drilled and there was a big boom for three or four years, and then it all shut down.

That’s not going to happen with the Eagle Ford. There’s so much to be drilled and the returns on the wells get better every month as companies learn more and more about how the formation itself works, how the hydraulics and rock densities within the formation vary. All these wells are going to get drilled eventually and it’s going to take a long, long time to do it.

James Hahn II And that’s a great point you make about people coming back and getting even more out. I talked to a lot of smaller operators looking at trying to get better with their SEO, better search and everything like that, and get higher up in rankings. That’s one of the things that you hear consistently from smaller operators, is, “Hey listen, I don’t need 100,000 barrels a day coming out. If I can go in and recomplete this well and get 10 barrels a day, then we’re doing just fine,” sort of a thing. And so, that just extends the life of the play further and further out.

David Blackmon Right. I get so amused with all these people touting Peak Oil theory. You see them write pieces and they talk about the steep decline rates of these wells. Well, yeah, initially there is a steep decline rate, but then guess what happens? The production level is off and these things may produce for 20 or 30 years.

It’s not like it’s going to keep declining at the same rate and peter out in three years. It will decline for a couple of years and then level off and just produce for a long, long time. This is the part of what happens within these shale plays that the doom and gloomers who want to decrease public confidence in the longevity of the shale boom always ignore and they ignore it for a very good reason because if they don’t ignore it, their theory falls apart. These are long-term wells in a long-term play.

James Hahn II Yeah. I’ve heard Allen Gilmer from Drillinginfo make the exact same point. Yeah, they have a 70% decline rate, but you’re bringing them on at hundreds of thousands of barrels a day. Of course, they’re going to have a steep decline, but then they’re going to keep going.

Okay, so transitioning on one last good news story that I wanted to touch on with you. Tell us about what’s going on with natural gas because we had a pretty cold winter. Usually, right now, we’ll see gas prices starting to dib, but it seems that we’ve drew down our resources so much that prices are remaining pretty — it’s a pretty good market still.

David Blackmon Yeah, it really is. The prices continue to stay above $4.50 now. Here we are getting towards the end of April and into the shoulder months when we begin to in a normal year refill natural gas underground storage.

We drew the storage levels down more over this past winter than has happened in probably a decade. Storage levels went down below half a TCF toward the end of the winter and that’s very low, lower than it’s been in a long time.

The price has remained pretty strong in spite of the fact that we continue to increase production in the country while running a very low number of natural gas drilling rigs. There are only about 320 drilling rigs at the last count that are drilling for natural gas in the United States.

It’s been gratifying and I think a very positive thing for the natural gas market that the prices remained this stable towards the end of April. It does also kind of make you wonder what may happen if this next winter is also a very harsh one. We just had the coldest winter we’ve had in probably 20 years. If you have another one like that next year with only 320 natural gas drilling rigs running, it causes a little bit of a concern that you could really see a spike in gas prices next winter.

I don’t think anyone thinks you’re going to see a long-term spike in the natural gas prices. There are just too much untapped reserves out there that can be tapped very quickly if you get into a real shortage, but this has been good. The market appears to be firming up and it of course creates a much healthier situation for natural gas producers in general.

James Hahn II Yeah, and $4.50 is much better than $3 in MCF or $2.50 on that board, on that one point, right?

David Blackmon Exactly. It was pretty depressing back in 2010 and 2011 when the gas price would drop down into the low twos or the low to high twos. That’s at a point where it’s hard to drill any gas well. At $4.50, most natural gas wells are economic to drill, so it’s a very good situation right now for natural gas companies.

James Hahn II Well, I can’t thank you enough, David, for coming on at the Oil and Gas Digital Marketing Podcast and giving us an update. We’ve been talking a lot of strict marketing over the last few weeks, but I wanted to get some good analysis on what’s happening out there in the patch. You certainly have provided us with that.

If someone wants to find out more about you, about FTI, what you do for Forbes, where would you send them and what would you ask them to do, I guess?

David Blackmon Well, the web address at Forbes is www.forbes.com/sites/davidblackmon. You can find information about FTI Consulting, which is a wonderful consulting company, at fticonsulting.com. Follow me on Twitter at gdblackmon.

James Hahn II I always laugh at that one. Nothing meant by the “GD”, I’m sure.

David Blackmon Absolutely not.

James Hahn II Well, this has been again a very fantastic and very enlightening conversation, David Blackmon. Thank you so much for joining us on the podcast and I can’t wait to read your next article coming out on Forbes.

David Blackmon Thank you, James. I appreciate it.

That’s a Wrap

James Hahn II Well, this brings us to the end of another Oil and Gas Digital Marketing Podcast. I have been your host, James Hahn II of TribeRocket.com and I just love, love, love that interview with David Blackmon.

We’ve been talking some strict marketing over the past few episodes, so it’s refreshing to take a step back and find out what’s really going on out there in the oil patch because we’re on the oil business, so we’ve got to talk a little bit oil every now and again. There have certainly been some setbacks via Keystone. Hopefully that will work itself out, but man, I just tell you, it gets no better than talking some good old fashion Texas oil and gas.

If you’d like to find out more about Tribe Rocket, you could check us out over at triberocket.com. If you’re a free e-book type of a guy or gal, you can go to — I’ve never used that word before in my life, “gal”. I’m 33, so I guess that’s about the time. I thought it happened some time in your 50s, but at any rate, you could go over to triberocket.com/ebook and you can go ahead and download our free e-book, which is “The Top Five Marketing Mistakes Oil and Gas Operators Make and How to Avoid Them”.

If you do that, we’ll gladly give you a 90-minute free digital coaching session where we will teach you how it’s done once you get that content, how do you distribute that content, how do you build your email list and just kill it online, how you do that. We’ll teach you as much as we can anyway in 90 minutes.

If you liked what you’ve heard today, please go ahead and give us a review on iTunes. You could just go to triberocket.com/review. That will take you straight to iTunes where you can just — boom! Five stars, done! Hopefully at least four or five, but hey, that’s up to you. I can’t make you do it. It’s up to you.

Many thanks again to Mr. David Blackmon for his time and awesome update from the patch, I should say. Thank you so much for tuning in. This week, I hope that you kill it just like we’re talking about killing it online, I hope in your life, in your daily routine — brother, just eat your vitamins. Say your prayers, brother. Sorry. I was watching a little Hulkamania old school on YouTube the other day. That’s not how we finish this show.

You know how we go out. Let’s do it in honor of Mr. J. Paul Getty. Let’s rise early, work hard, and strike oil.

Folks, we will talk to you all next week!

The post #010: Keystone XL, Eagle Ford, and Natural Gas with Forbes Writer David Blackmon appeared first on Tribe Rocket Inc..

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Reading Time: 22 minutes

Forbes.com writer David Blackmon joins us to discuss the latest on the Keystone XL, Eagle Ford Shale, and the surprisingly strong natural gas market. Plus, I get all up on my soap box talking about how insourcing your content is not optional in this week’s Pay Zone Power Move.

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The more content you produce, the better you get. And the better you get, the bigger your tribe grows. – @JamesHahnII (tweet this)

EPA has done two studies and concluded Keystone XL would have no significant environmental impact. – @GDBlackmon (tweet this)

It’s going to take 20 yrs just for the initial drill out of the Eagle Ford with current spacing rules. – @GDBlackmon (tweet this)

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David Blackmon’s articles at Forbes.com
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FTI Consulting
Keystone XL Review Extended, Delaying Final Decision Until After 2014 Elections
The Oil and Gas Law Digest and @OGLawDigest
Lord and Taylor
Hughes & Stuart Marketing Communications
Free 90 Minutes Digital Coaching Session
The Top 5 Marketing Mistakes Oil & Gas Operators Make – And How to Avoid Them

Pay Zone Power Move

James Hahn II All right. If this is your first time joining the tribe for the podcast, the Pay Zone Power Move is a digital marketing technique, tactic, or strategy designed to help you move the needle online in your business.

This week, I want to talk about the necessity. I want to call it a necessity at this point. We provide a lot of different levels of content services for people here, but I’m going to go ahead and say that this is the necessity.

If you want to kill it online, if you want to drive traffic, if you want to build your tribe, grow your brand, watch profits soar, this is how it’s done through insourcing content. What the heck does that mean though? All right, so insourcing content meaning that the content that you are producing as a company is being written by the people within your own organization.

And so, when we go back and look at — if any of you all have never heard of Drillinginfo, it’s a company I used to work for. They gave me my big break here and that’s the reason I even have this company today. Drillinginfo is an international oil and gas intelligence company and they are amazing because they gave me the scissors and said, “Run online.”

The thing is that while I played a large part in this success of Drillinginfo’s online strategy, I was really truly just riding the coattails of a whole bunch of geniuses that work for the company. I used to send out a Monday morning motivation email to everyone who wrote for the blog, which by the way was more than 50 people at the company — the CEO, Allen Gilmer; the president, Ed Perry; the co-founder, Mark Nibbelink; senior level managers, everybody that wrote for the blog, and why is that important?

Well, I just talked about how I rode the coattails of all these geniuses and the reason is because I would’ve gotten nowhere without amazing content. The amazing content came from those people that founded the company, those people that run the company, those people that are solving problems and creating solutions for the clients on a daily basis.

And so, like I said, there are several different ways that you can choose to do your content. When someone finds out about insourcing or I tell them about it for the first time, the big pushback is always, “You know, we just don’t have time. We are all so busy. There’s no way that we’re going to be able to be consistent,” and all of these different pushbacks come.

I’m happy to offer the content services in that case, and it might sound weird, it’s not what I want to do. It’s actually the most expensive thing that I can help someone do, is to interview their executives, interview their senior leaders, interview their salespeople, and then go out and produce content for them, ghostwriting it essentially from their own words in those conversations, but you can only imagine how time consuming that is and that’s a very pricey proposition.

A lot of people go with it because they just say, “You know what? We don’t have time,” but here’s the thing. You can’t give what you don’t have. I want to say that again because it’s a key principle that — I guess it’s been drilled into me by several spiritual directors over time and I’ve heard it and it rings true every time. You can’t give what you don’t have.

And so, while I and my team are very good at what we do when it comes to producing content, when it comes to sitting down whether via Skype, personal, or whatever, and I having the upstream oil and gas knowledge that I have, I can extract a lot of phenomenal information and content through the conversations that I have and then keyword target them appropriately, distribute them on the internet appropriately and everything, but it’s still not truly, truly authentic because it’s not coming from within the company.

It’s coming sort of from within the company, but then to us as a third-party content service provider in that case. And then we are doing multiple drafts, sending it back, coming back and forth and everything where the ideal situation would be that your CEO sits down and writes a blog.

Your president writes a blog. The senior leaders at your company, the midlevel managers, the salespeople, the accounting, everybody produces content and that’s how you get over the hurdle of saying, “Oh my goodness, where are we going to get all this content from? It’s going to be impossible.”

Well, if you have even 50 people at your company and each person writes a blog and you post two or three times a week, they’re not going to have to write more than — I’m not good at math, but it’s not a lot of blogs per year. And so, that’s how you spread out the work, but also you get a much more unique perspective from within your business because it’s not always the same one or two people.

Maybe you hire someone to be your social media manager or your content manager or whatever it is and they’re the only ones that write. Well, that’s a problem because they’re the only ones that are contributing to the conversation about your company and they might be really good at it, but they only have two eyeballs.

Well, let’s get hundreds of eyeballs involved or however many people that you have on your team. Let’s spread it across. Because when you spread it across, then it’s authentic and then it really sounds like the company. And not only that, but you’re demonstrating — and we’ve touched on this last week, but you’re demonstrating to your customer base, to your clients, to your prospects as well that this company is a serious company because their CEO takes time to write an incredibly insightful content that helps me in my business.

That says a lot to a prospect when they are able to come to a — maybe they see a link on Facebook, come to your blog, read the thing and they go, “Wow! This was written by the CEO. This was written by the president,” or even one of the top salespeople or something along those lines, but again, the point is that you need to tell your own story.

It’s all about you telling your story and I can help you. I’m not the only person out here that does this. I think I might be the only person in our niche as far as in oil and gas that is really focused on this, but a lot of people will say, “Well, we’ll just hire a journalist to write something for $100,” or whatever it is, “because my time is too precious.”

Well, how much is your time worth if you’re able to write a compelling piece of content that shows that you mean business to your prospects and converts people to be part of your tribe and then gives you the opportunity to send multiple emails per week straight to their inbox?

And then when you do have that big new product release, when you do have that new strike down in South Texas, whatever the case might be, you’re able to go ahead and hit those people up with the announcement and get them essentially ready to invest in your product, buy your services, whatever the case is because they trust you.

They trust you. We’ve talked about this I think maybe even just last week, but what are sales based on? Sales, people buy things from people they like and especially the kind of — not even especially, but they go hand in hand, right? They buy things from people they like and most of all, along with that, they buy from people they trust.

And so, when you are being your authentic self as a company and everyone is pitching in and everyone is building these relationships with your prospects, with your clients through their email inbox on a regular, consistent basis, at that point then the sort of buyer company dynamic goes away and they’d see you as a resource.

I can name many companies in my own profession of marketing that that’s how I see them because they’ve helped me so much. A lot of them haven’t gotten anything in return from me personally other than me talking about their brands on every single phone call that I ever have with anybody, which is the 90-minute digital coaching session.

So again, I am happy to help you with your content and everything, but that’s not my ultimate goal, which sounds silly because I can charge you more if we’re interviewing, if we’re ghostwriting, if we’re doing things like that. Ghostwriting isn’t even an appropriate term because we’re taking your own words and putting them into a written format that is readable and search engines pick up and then shareable and everything like that.

It sounds silly that I would say, “No, that’s not what I want,” because why wouldn’t I want to charge you as much as possible as long as I can? I own a business, don’t I? Isn’t that the whole name of the game? Well, no. I want you to be successful. Certainly, I’ll take the money in the meantime, but it’s not my ultimate goal.

My ultimate goal is to teach you how this is done so that I can come in, work with you, and maybe we start with a ghostwriting situation, or in a better case, we just say, “You know what? Hey, let’s just start cranking out content,” because the more you produce, the better you get and the better you get, the more traction you get and the more your tribe grows, and it’s an upward spiral from that point.

So I hope that Pay Zone Power Moves helps you in your business. I’m certainly not trying to turn it into a commercial for Tribe Rocket, but even if I’m not talking about Tribe Rocket, there are hundreds of people out there that will provide the same content services and you don’t need to waste your time and money with that, with me even if you insource your content.

If you have someone within your company that knows how to SEO keyword targeting, that knows how to do the appropriate distribution of your content, then hey, you might not even need a consultant. You just need to recognize the talents and the strengths of the people within your own organization and maybe put someone in the right place. That’s actually what happened to me at Drillinginfo.

I was fired after a year of sales. I moved into technical writing for a year and they saw that I had a talent and they put me in the right place. So within your organization has a passion for this online marketing? Who in your organization knows how to do these things and maybe even listen to these kinds of podcasts and has a passion for these things, but hasn’t been given the appropriate opportunity yet?

I would encourage you, please give that person the opportunity because it can save you a heck of a lot of money, first of all, but second of all, even every one of us here is an employer at some level and ultimately our purpose over and above making the bottom line should be to make the best people that we possibly can out of our organization.

I will jump off my soapbox for today and again, I hope you enjoy that Pay Zone Power Move. If you did and you found it helpful, you can hit me with an email at james@triberocket.com. You can always tweet me @JamesHahnII.

And now that we have all the contact information out of the way, I’m tired of hearing myself talk. I want to hear Mr. David Blackmon because this guy has some things to say about Keystone, about Eagle Ford, about natural gas, and it’s a fantastic interview, so let’s go ahead and transition over to this interview with Mr. David Blackmon.

Forbes.com Writer David Blackmon on the Keystone XL and More

Joining the tribe this week is David Blackmon. He is a managing director of the FTI Strategic Communications Practice and is based in Houston, Texas. Throughout his 34-year career in the oil and gas industry, David has led industry-wide efforts to develop and implement strategies to address key issues at the local, state, and federal level.

David is currently a contributing columnist for Forbes.com, which is one of the main reasons I wanted to get you on here, and he’s focusing on public policy issues affecting oil and gas industry. He also writes regularly for the World Oil Magazine and Eagle Ford Shale Magazine.

David Blackmon, thank you very much for joining us on the Oil and Gas Digital Marketing Podcast.

David Blackmon You bet. Thanks for having me. Happy Earth Day!

James Hahn II Oh! Is it Earth Day today? Oh man! That’s so retro. It’s like 1994 all over again.

David Blackmon Yeah, something like that.

James Hahn II So here on Earth Day, one of the things that we wanted to speak about, give me an update. You’re out there writing all of the time on Forbes.com and I’m fascinated with everything you put out. Give us an update on the Keystone XL pipeline because there was a major decision to delay that made recently. Is that correct?

David Blackmon Yeah. Basically what happened on Friday, of course, later in the afternoon on Friday when the administration always does its document dumps that it doesn’t want to receive too much media attention, they announced that they were extending the deadline for other agencies in the administration to offer comments related to the State Department’s upcoming report on whether or not to move ahead with the northern part of they Keystone Project.

That deadline was going to be the end of May and now, they had basically extended it past, guess what, Election Day, no surprise there.

James Hahn II I couldn’t have guessed it.

David Blackmon Yeah. I laughed out loud this morning when I got online and there was a report containing a quote from Debbie Wasserman Schultz, the chairman of the DNC, stating that politics have played no role in the administration’s decision. Well, reality is the only aspect of that decision, the only factor in that decision, was politics and everyone knows that.

James Hahn II So help me understand then because I’m an amateur on the Keystone XL pipeline just like anybody else. I remember — it was even way back when I was first starting work at Drillinginfo, which was in 2010 — reading news stories about this thing. Why are we still talking about it?

David Blackmon Yeah. They began the permitting process for Keystone I believe six years ago now. It has been through four different major environmental impact studies and the administration has basically used every conceivable excuse they could find to delay making a final decision on it.

Every one of the environmental impact studies that have been made related to the project have uniformly found that it would have no significant negative environmental impacts and yet the administration continues to delay making a decision for purely political reasons. Let’s be honest. There’s no real reason of anything other than political considerations to delay this project any further.

James Hahn II And how did they do it this time? You said they extended commenting by who?

David Blackmon Well, the process that they have set up, the final step in the process before the State Department — because this is an international project that crosses the border with Canada. The State Department has to be the final arbiter of whether or not it goes ahead.

The administration has set originally a 90-day-period for other agencies within the administration to offer comments for the State Department to consider before issuing its final decision. It allows the EPA, for example, one more bite at the apple. The Department of Interior and any other interested department commerce maybe might have had an interesting commenting to do that.

That was supposed to be the final step in the process before the May 31st deadline and then 60 days later, the State Department was to have issued a final decision. Well, without any real rationale, just on Friday, they arbitrarily extended that deadline, so other departments within the government will have through the end of November, I believe, to offer their comments.

James Hahn II So we need some more meetings about the meetings about the meetings about the meetings.

David Blackmon Right, exactly. Let’s realize, too, that EPA has already twice now performed studies related to this pipeline and both times issued reports stating that the pipeline would have no significant environmental impact, so it’s not like there’s going to be anything new here. There’s no new news to be had about Keystone XL. It’s just a purely political exercise trying to postpone the date of decision until after the midterm elections, which as everyone knows are shaping up to be very difficult for the president’s political party.

James Hahn II So from a Keystone perspective, we’ve gotten pretty down and it is a pretty frustrating and sad story, but I want to look at the positive side of it, too. Let’s say the ideal situation goes through, which it hopefully will, that the keystone gets approved. What are we looking at in terms of job gains, in terms of financial gains? Give us some of the benefits that this will bring to our country.

David Blackmon Well, it’s 20,000 jobs. They’re in the construction phase of the project, all sorts of — we’ve seen studies that project billions of dollars in economic impact, lots of job creation, and the ancillary economic impact that comes from any oil and gas project is extraordinary.

We’ve seen studies over the years that estimate that every dollar spent in the oil and gas industry or the pipeline construction, the upstream industry, the downstream part of the industry generates $3 to $4 million in additional economic activity, so it’s an extraordinary job creator, extraordinary creator of economic development, and the irony here is Keystone is a shovel-ready project.

This is the kind of public works project, public development project that the President supposedly was looking to find when the Stimulus Bill was passed way back in 2009. Of course, eight or ten months later, the President said, “Well, we had a hard time actually finding shovel-ready projects.” Well, here it is. It’s been sitting there waiting for your approval for half a decade now throughout the entirety of the Obama Administration.

This process began actually in the Bush Administration, so this project was already out there to be approved rapidly when the President took office. There’s no finer example of a shovel-ready project that doesn’t even have to be subsidized by the Stimulus Bill or by the government in any way.

The government simply has to get out of the way and all of this development will take place, but for purely political reasons and in order to placate his environmentalist voter base, he continues to delay the project for no good reason.

James Hahn II And so, two points there. First of all, if we don’t get the oil, someone is going to get it and it will be China, right?

David Blackmon Yeah, that’s correct. Yeah, the oil is going to be produced from the oil sands regardless of whether this pipeline goes in or not. Right now, much of it is already coming in to the United States via various smaller pipelines or on trains, on well cars. We’ve seen in the last two years a 400% increase in the amount of oil transported via rail in the United States and across North America. Of course, virtually all of that is due to the lack of enough pipeline capacity or new pipeline development.

Keystone is the single biggest example of that. Once Keystone is complete, 800,000 barrels of oil are going to come down that pipeline to refineries along the Gulf Coast and are to be shipped overseas for refining. All of that creates jobs and creates economic development, and it helps the United State’s economy to continue to recover from the recession.

James Hahn II And do you ultimately see this working out? It’s just Obama can’t let it happen on his watch because of his base? How do you feel that it will work out?

David Blackmon Well, I do think there’s no legal basis for denying the project. The President, you keep thinking he will run out of options, rationale under which to further delay it. My hope is that after the midterm election and he will be a lame duck going into the final two years of the administration, he will finally do the right thing and approve the project so that he could then brag that it got built under his watch and all those jobs were created under his watch.

It does feel like that once the midterms are completed, there won’t be nearly as much political rationale for the Democratic Party to continue to urge the President to delay the pipeline, so hopefully that will happen. If it doesn’t happen, then he’ll continue to make up reasons to delay it until after he leaves office and leave it to the next president to decide. That would be a shame for the country, but certainly you wouldn’t believe it’s beyond the realm of possibility for this president.

James Hahn II I couldn’t disagree. Well, let’s shift gears from this sad Keystone story. Tell me what’s going on down there in the Eagle Ford because I read everything you write on Forbes about the Eagle Ford.

Let’s talk about some good news. What’s the latest going on in the Eagle Ford these days?

David Blackmon Well, the Eagle Ford just pretty much on a daily basis sets a new production record. It’s the second most productive, all-formation in the United States right now behind the Bakken, but most likely we’ll move ahead of the Bakken shale over the next couple of years.

The rig camp in the shale, in the Eagle Ford, is kind of stabilized between 250 and 270 active rigs over the last two years, and you probably won’t see it increase much above that. Any production basin has a limit to how many active rigs it can sustain, so it’s really being drilled out full bore. It just transformed the economy in South Texas.

It’s so gratifying to me because I grew up down there in a small town called Beeville, population of 14,000 people, and it’s the biggest city in the Eagle Ford Shale 25-county region, which is a pretty extraordinary fact in and of itself. In an area that has forever since human beings have lived there been basically economically impoverished, it’s now and has been for two years now one of the very hottest economic development regions in the whole world, so it’s very gratifying.

There are challenges, of course, and the industry continues to work closely with the local communities and the junior colleges and councils of government down there to address them. Obviously, with any hot economic development plate like that, you’re going to have challenges for the communities in the industry to meet.

James Hahn II When you say that, are you speaking along terms of road construction and that thing? Tell me more about those types of things they’re overcoming.

David Blackmon Yeah. Roads have been a pretty big challenge. These are very rural areas, the county roads. Really probably the majority of county roads in these 25 counties are not paved with asphalt or concrete. They’re either gravel or caliche, a chalky substance that we use to pave roads with here in Texas. And so, they’re not designed to carry the big truckloads that the oil industry has to use in order to conduct these drilling operations.

There is substantial damage the companies for the most part try to repair as well as they can and they’re pretty diligent about it, but the counties still see these impacts and it does create some very rough road conditions for the local residents. So there’ve been several different efforts at the county in state level to address that and the state has begun to provide more and more funds through the department of transportation to help these counties deal with this issue.

James Hahn II And at the same time, something like that’s happening, there’s quite a few landowners that are probably getting some healthy transfer payments these days.

David Blackmon Oh yeah. There’s a new millionaire every day in that region. It’s just unbelievable, just millionaires everywhere now in an area where they were not for a long, long time. I even have a friend I grew up with at Beeville who’s become a multimillionaire without even getting an oil and gas lease. He simply has a very high production — very deep water well drilled in to the Carrizo-Wilcox Aquifer in his land and has become a millionaire selling water for the Eagle Ford operations.

The business development down there is transformative in Beeville for the first time in 30 years. There are new housing developments being built as people continue to move into the region workers and other folks in supporting industries. It’s a really amazing thing to see happening.

Another thing that’s really being transformed down there is the rail situation. I talked about that related to the Keystone situation, but railroads transport a lot of things for the oil industry in addition to crude oil. They transport the frac sand and equipment and all sorts of other things related to service industries.

This region in South Texas has seen four major new rail terminals being built in just the last two years, so the infrastructure that’s being built that will last long after this boom is over is just really a blessing to the region.

James Hahn II And for anybody who might be listening, you just used the buzz — not necessarily a buzzword, but maybe a keyword that some pessimists here, they can go, “Oh yeah. Well, this is a boom. It’s going to be over in the next 18 months and then everything will be all right,” that sort of a thing that you hear so often, talk to us about — I mean, I’ve heard that the Eagle Ford is going to be going well into the 2020s, I guess you could say, even into the 2030s because there are so many more wells to be drilled.

David Blackmon Yeah. I’m 57 years old. I’ll be lucky to live to see the end of the boom down there. You have to consider, this region is three quarters the size of South Carolina. This is an enormous play area. It’s going to take 20 years just for the initial drill out under current spacing rules. And then the Railroad Commission will have to consider whether or not to allow another round of drilling on the infield, smaller spacing rules.

In the end, you’re going to have companies going back into wells and recompleting them and re-stimulating them over the years. As production declines, as we’ve seen in the Barnett shale and in most of these wells, you’ll be able to go back in and re-stimulate them at least once or maybe two or three times to increase the production again over the years, so this is a decade-long process.

We had a boom down the same region of a formation called the Austin Chalk, which was kind of a conventional play where you would drill vertical wells and have two or three years worth of production and then they’d fall off. There weren’t that many wells to be drilled and there was a big boom for three or four years, and then it all shut down.

That’s not going to happen with the Eagle Ford. There’s so much to be drilled and the returns on the wells get better every month as companies learn more and more about how the formation itself works, how the hydraulics and rock densities within the formation vary. All these wells are going to get drilled eventually and it’s going to take a long, long time to do it.

James Hahn II And that’s a great point you make about people coming back and getting even more out. I talked to a lot of smaller operators looking at trying to get better with their SEO, better search and everything like that, and get higher up in rankings. That’s one of the things that you hear consistently from smaller operators, is, “Hey listen, I don’t need 100,000 barrels a day coming out. If I can go in and recomplete this well and get 10 barrels a day, then we’re doing just fine,” sort of a thing. And so, that just extends the life of the play further and further out.

David Blackmon Right. I get so amused with all these people touting Peak Oil theory. You see them write pieces and they talk about the steep decline rates of these wells. Well, yeah, initially there is a steep decline rate, but then guess what happens? The production level is off and these things may produce for 20 or 30 years.

It’s not like it’s going to keep declining at the same rate and peter out in three years. It will decline for a couple of years and then level off and just produce for a long, long time. This is the part of what happens within these shale plays that the doom and gloomers who want to decrease public confidence in the longevity of the shale boom always ignore and they ignore it for a very good reason because if they don’t ignore it, their theory falls apart. These are long-term wells in a long-term play.

James Hahn II Yeah. I’ve heard Allen Gilmer from Drillinginfo make the exact same point. Yeah, they have a 70% decline rate, but you’re bringing them on at hundreds of thousands of barrels a day. Of course, they’re going to have a steep decline, but then they’re going to keep going.

Okay, so transitioning on one last good news story that I wanted to touch on with you. Tell us about what’s going on with natural gas because we had a pretty cold winter. Usually, right now, we’ll see gas prices starting to dib, but it seems that we’ve drew down our resources so much that prices are remaining pretty — it’s a pretty good market still.

David Blackmon Yeah, it really is. The prices continue to stay above $4.50 now. Here we are getting towards the end of April and into the shoulder months when we begin to in a normal year refill natural gas underground storage.

We drew the storage levels down more over this past winter than has happened in probably a decade. Storage levels went down below half a TCF toward the end of the winter and that’s very low, lower than it’s been in a long time.

The price has remained pretty strong in spite of the fact that we continue to increase production in the country while running a very low number of natural gas drilling rigs. There are only about 320 drilling rigs at the last count that are drilling for natural gas in the United States.

It’s been gratifying and I think a very positive thing for the natural gas market that the prices remained this stable towards the end of April. It does also kind of make you wonder what may happen if this next winter is also a very harsh one. We just had the coldest winter we’ve had in probably 20 years. If you have another one like that next year with only 320 natural gas drilling rigs running, it causes a little bit of a concern that you could really see a spike in gas prices next winter.

I don’t think anyone thinks you’re going to see a long-term spike in the natural gas prices. There are just too much untapped reserves out there that can be tapped very quickly if you get into a real shortage, but this has been good. The market appears to be firming up and it of course creates a much healthier situation for natural gas producers in general.

James Hahn II Yeah, and $4.50 is much better than $3 in MCF or $2.50 on that board, on that one point, right?

David Blackmon Exactly. It was pretty depressing back in 2010 and 2011 when the gas price would drop down into the low twos or the low to high twos. That’s at a point where it’s hard to drill any gas well. At $4.50, most natural gas wells are economic to drill, so it’s a very good situation right now for natural gas companies.

James Hahn II Well, I can’t thank you enough, David, for coming on at the Oil and Gas Digital Marketing Podcast and giving us an update. We’ve been talking a lot of strict marketing over the last few weeks, but I wanted to get some good analysis on what’s happening out there in the patch. You certainly have provided us with that.

If someone wants to find out more about you, about FTI, what you do for Forbes, where would you send them and what would you ask them to do, I guess?

David Blackmon Well, the web address at Forbes is www.forbes.com/sites/davidblackmon. You can find information about FTI Consulting, which is a wonderful consulting company, at fticonsulting.com. Follow me on Twitter at gdblackmon.

James Hahn II I always laugh at that one. Nothing meant by the “GD”, I’m sure.

David Blackmon Absolutely not.

James Hahn II Well, this has been again a very fantastic and very enlightening conversation, David Blackmon. Thank you so much for joining us on the podcast and I can’t wait to read your next article coming out on Forbes.

David Blackmon Thank you, James. I appreciate it.

That’s a Wrap

James Hahn II Well, this brings us to the end of another Oil and Gas Digital Marketing Podcast. I have been your host, James Hahn II of TribeRocket.com and I just love, love, love that interview with David Blackmon.

We’ve been talking some strict marketing over the past few episodes, so it’s refreshing to take a step back and find out what’s really going on out there in the oil patch because we’re on the oil business, so we’ve got to talk a little bit oil every now and again. There have certainly been some setbacks via Keystone. Hopefully that will work itself out, but man, I just tell you, it gets no better than talking some good old fashion Texas oil and gas.

If you’d like to find out more about Tribe Rocket, you could check us out over at triberocket.com. If you’re a free e-book type of a guy or gal, you can go to — I’ve never used that word before in my life, “gal”. I’m 33, so I guess that’s about the time. I thought it happened some time in your 50s, but at any rate, you could go over to triberocket.com/ebook and you can go ahead and download our free e-book, which is “The Top Five Marketing Mistakes Oil and Gas Operators Make and How to Avoid Them”.

If you do that, we’ll gladly give you a 90-minute free digital coaching session where we will teach you how it’s done once you get that content, how do you distribute that content, how do you build your email list and just kill it online, how you do that. We’ll teach you as much as we can anyway in 90 minutes.

If you liked what you’ve heard today, please go ahead and give us a review on iTunes. You could just go to triberocket.com/review. That will take you straight to iTunes where you can just — boom! Five stars, done! Hopefully at least four or five, but hey, that’s up to you. I can’t make you do it. It’s up to you.

Many thanks again to Mr. David Blackmon for his time and awesome update from the patch, I should say. Thank you so much for tuning in. This week, I hope that you kill it just like we’re talking about killing it online, I hope in your life, in your daily routine — brother, just eat your vitamins. Say your prayers, brother. Sorry. I was watching a little Hulkamania old school on YouTube the other day. That’s not how we finish this show.

You know how we go out. Let’s do it in honor of Mr. J. Paul Getty. Let’s rise early, work hard, and strike oil.

Folks, we will talk to you all next week!

The post #010: Keystone XL, Eagle Ford, and Natural Gas with Forbes Writer David Blackmon appeared first on Tribe Rocket Inc..

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