Posted on 10/26/2026 7:20:13 AM PDT by eastexsteve
In my part of Texas, oil, gas, and timber drives the economy. I made an observation in a family meeting yesterday that it's really starting to break loose here. The local RV parks that are usually empty during the week, are filling up with oilfield workers. The oil and gas personnel that I know who are involved in site prep are working overtime. My son-in-law is one, and he is now working 36 hour shifts.
I've been holding off doing a thinning cutting on one of my timber tracts because the price has been so low. But, last week my timber manager came to me and told me it was time to cut, as the prices were up 30% over what they were in the summer. Not just for the sawlogs, but the mills are crying for sweetgum. This is normally non-marketable timber, except when the oil companies are looking to buy it for what they call "derrick flooring." Right now the mills can't get enough of it to meet the demand. And, a lot of timber is coming in to the mills from clearing off drilling locations.
To those of you who are starting to lose faith in Trumps' promise for lower gas prices, I can only say one thing. Hang on, it's coming. And, it looks like a big one.
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None of this happens fast. It never does. From the time the production manager walks out into the woods and says: "drill here" it will take a year before the drill bit hits the ground. First, the permits have to be obtained, and negotiations with the royalty owners have to be finalized. Then, the landman has to cut a deal with the landowner, and this can take awhile. Then, the surveyors have to come out, and do their thing. Then, they have to come out and clear off and build the platform and, if necessary, the access road, and any other site prep. Then, they will finally bring the rig out and stand it up, and all other support equipment. It will take them a week to get the rig operating, and another two weeks or more to make the well. Then, they have to tie the well output into the nearest pipeline.
for what they call “derrick flooring.”
This is also known as Rig Matting. Sweet gum is not a species that most sawmills want because typically they have a hard time selling it. It is not used in dimension lumber. It is also not treatable. Meaning pressure treaters do not want it. So, all the Southern Yellow Pine mills in Texas and LA, MS, AL, GA do not want it.
However, make a mat out of it that you can drive on and then throw away or sell for salvage value at the end of the drill and it is fine.
The guy I used to sell in ND eventually switched to buying 3x12 Ponderosa Pine. Made in the Black Hills of SD. He could buy that cheaper. Like I said they were just using it keep the drilling pipe out of the dirt. Same thing with the Sweet Gum. They are buying it because it is CHEAPER than other alternative species.
$40 oil will have a negative effect eventually, driving down drilling and exploration, then supply goes down, prices will rise, and drilling and exploration begin to take off again when it becomes financially viable.
I have heard that the sweet-spot for consumers, supply, and oil companies is around $60 a barrel. Everyone can kind of live at that level. (Don’t know if that is true, that is what I have heard)
Never been subject to short-term whining so, in for the long haul. If it doesn’t pan out.....carry on. Just less carrying. 😊👍🇺🇸. Good luck with your thinning. Oh, and sharpen that dang chain!
Cornell?
We desperately need more refineries built.
Thank you for that GREAT news!
Drill, Baby! DRILL! :)
We waited a year to cut our Black Walnut. China had screwed with the prices, but we got a fat bundle for 47 mature trees from our 48 acres of woodland...and you’d never even know they were missing. ;)
MAGA! :)
Great on-the-ground report! Thanks.
Here in the Coeur d’Alene / Post Falls area (Idaho), housing developments are sprouting like weeds. The once-ag “Rathdrum Prairie” has been slowly getting filled in with subdivisions over the past decade, but the acceleration of housing starts the past couple years is astonishing. Everywhere you look you see grading, excavating, concrete pours, framing, roofing. Commercial construction anticipates the new housing is there are medium size commercial buildings being built all over the place. Interstate 90 runs east-west right through CdA and Post Falls. A minor work-over was done about seven years ago, but that’s being scrapped and about ten miles of MASSIVE widening, straightening, regrading, new major ramped intersections are getting built. The planners are obviously looking out 20-25 years.
The interesting thing is the contrast with Washington State just five miles to the west. You see very little construction going on over there in the greater Spokane area.
“volunteer hay” — interesting. Livestock feed? Is there enough seed in the ground from previous harvests? Isn’t the hay mown before going to seed?
Interesting info about lumber for mats. How long does that lumber last? Does a lot of timber harvest go to that application? Is it mainly cull logs used to make that low-value lumber? I never knew about that timber market.
So much advance work (like anything in the world). What fraction of all that time is the actual drilling operation?
Try $8 (which would probably be $40 today).
It’s pouring in Midland, too.
Assuming it’s the same storm at the Delaware, it should be hitting the Pecos.
Gas was NOT reasonable in 2025 and has not been “reasonable” since TRUMP’s first term.
I’d rather win in 2028, than 2026.
Seed sits there for a decade (or longer) waiting for a storm.
I’m presuming he means hay and native grasses all mixed up. Perfect for grazing.
That is, assuming the Coast Guard doesn’t come in a claim a “water way” is being obstructed. Sadly, not joking. I’ve dealt with the Coast Guard in the middle of the desert before. I asked them to send a cutter up the draw, which was considered “not amusing”.
83 year old farmer father-in-law had his best corn crop ever and at highest price ever.
Just out of curiosity, how much did you get from that 48 acres?
I have 40 actres with a bunch of walnut and hickory on it altar hasn’t been cut since WW2…
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