Permian oil needs truckers, but truckers don't want to play anymore

Oil truckers in the Permian Basin (Texas) who were fired when oil prices tanked in 2014 are now back in high demand as prices return to $60, but apparently they aren't interested anymore. Could this unexpected development actual derail plans to increase production?

Share this post


Link to post
Share on other sites

and Permian Basin just set a new oil production record of at least 815 million barrels, racing past its previous record of 790 million barrels set in 1973. 

Share this post


Link to post
Share on other sites

Think this is a problem mostly in the Permian's Delaware Basin because they need to haul the oil by truck over rough terrain to get to the pipelines. 

  • Upvote 1

Share this post


Link to post
Share on other sites

Probably a great time to be a trucker in the area. Could fetch top dollar. Pavel, you looking for work?

Share this post


Link to post
Share on other sites

Well, it takes six to eight months to train a frac crew. Since 2014 when prices began falling, service companies would keep their best crews. The best ones made it through the downturn because they were more efficient and faster. As the industry adds crews, they’re not as efficient as the ones that have been working the last four, eight years. It takes a while to build up crews, and a lot of the guys who could come back quickly, who still had the skills, have moved on to other industries. 

 

Share this post


Link to post
Share on other sites

I am not saying that trucker needs long training, but I am sure it is more demanding than transporting flowers for Walmart

Share this post


Link to post
Share on other sites

I read somewhere that Permian will see production grow some in 2018, but as new crews go to work and improve their efficiencies, it will really grow in 2019

Share this post


Link to post
Share on other sites

About 3,000 oil truckers are hauling oil around the Permian, more than the 2,000 to 2,500 just before the 2014 price bust. But companies will need to hire more than 3,000 additional drivers at the rate the patch is growing.

Share this post


Link to post
Share on other sites

5 minutes ago, TraderTate said:

Probably a great time to be a trucker in the area. Could fetch top dollar. Pavel, you looking for work?

Oil truck drivers are paid about $100,000 per year, some 10% to 20% below 2014-2015 salaries

Share this post


Link to post
Share on other sites

4 minutes ago, JohnAtronis said:

I am not saying that trucker needs long training, but I am sure it is more demanding than transporting flowers for Walmart

Typically, oil truckers got paid more than frac sand drivers because of the additional skills needed to haul a hazardous substance like petroleum

Share this post


Link to post
Share on other sites

I am trying to get more informed on this. Those truckers have quite a few demands and concerns to be addressed. Looks like they are on surgeons level.

"Truckers are also concerned about the implementation of digital log books this month that compute the hours of operations more accurately, instead of the manual logs where drivers got to pen down the hours themselves. Drivers, who get paid by how much time they spend time in a field "could manipulate the system with manual entries"

Share this post


Link to post
Share on other sites

4 hours ago, TraderTate said:

Oil truckers in the Permian Basin (Texas) who were fired when oil prices tanked in 2014 are now back in high demand as prices return to $60, but apparently they aren't interested anymore. Could this unexpected development actual derail plans to increase production?

They used to say the same when there was a shortage of frac crews right after prices jumped and stayed higher. Didn't make a lot of difference in hindsight, I think. Production continued to grow. But frackers are charging more and there were fears that these higher charges will wipe out any potential gain from the higher prices. And now the truckers will ask for more money. It's tough to be a shale driller these days.

Share this post


Link to post
Share on other sites
Sign in to follow this  
Followers 0