.

[Douglas Buckland + 6,308]

24 minutes ago, Old-Ruffneck said:

You speak of the tens of thousands that didn't adapt and are unemployed. I speak of the Many MILLIONS that every time we fill up our vehicle and not get ripped off out-weighs your job loss. I left in 86 because there was zero hiring. I think I didn't make a mistake. My ex-wife just went bankrupt in Odessa. While I feel bad I told her 10 yrs ago put money away. So now losing couple properties and moving in with her Mother in Valentine. 

 

So you think the price at the pump is directly due to the price of crude? I suggest you look at what percentage of that price per gallon is paid for taxes. Furthermore, did that percentage go DOWN when the price cratered?

Many people were not in a position to 'adapt', and this is NOT 1986.

Do you get upset when utilities gouge you? Do you get annoyed when the local taxes go up yearly for 'education', although you have no say in the curriculum or likely do not have children in school? You seem to be very selective when it suits your purpose.

[Douglas Buckland + 6,308]

Oil production looks robust and growing....in an over supplied market, THIS IS THE PROBLEM!!!

Do you think a perpetual glut is a good idea? 

So now oil stocks are falling out of favor, why is that?

Capitalism relies greatly on common sense....which is sadly lacking in the industry today.

[wrs + 893]

49 minutes ago, Douglas Buckland said:

And if you remember a few years back, when the shale oil operators beat the service companies senseless to lower their rates so that the OPERATORS could lower THEIR breakeven costs to stay in business. Oh, you apparently forgot about this.

The service companies were barely keeping their heads above water and laid off thousands globally to be able to keep crews and equipment running in the debt ridden American shale oil patch!

Of course the service companies made some money, but at the rates determined by the greedy, no load operators! The service companies were, and may still be on, life support rates.

So do you actually know anyone in that business and what rates were before they fell or what they are today?  I do remember that day rates on crummy old rigs were $20-30k and everyone was making easy profits with $100 oil.  Rates dropped to $10k/day for a while back in 2016 but today, for better, skiddable rigs the rates are running $22k/day so the service companies are doing great. BTW, I have plenty of daily drilling reports dating from 2014 to today.

I am reading daily drilling reports on three new wells since late June and it looks to me like service providers are charging crazy rates for all kinds of stuff again. Well supervisors are now $3750/day compared to $3000/day back in 2016, my math says that's a 25% increase.  You do the math, looks to me like service companies are back to their $100 oil prices with oil below $60.

Edited August 21, 2019 by wrs

[Old-Ruffneck + 1,177]

1 hour ago, Douglas Buckland said:

So you think the price at the pump is directly due to the price of crude? I suggest you look at what percentage of that price per gallon is paid for taxes. Furthermore, did that percentage go DOWN when the price cratered?

Many people were not in a position to 'adapt', and this is NOT 1986.

Do you get upset when utilities gouge you? Do you get annoyed when the local taxes go up yearly for 'education', although you have no say in the curriculum or likely do not have children in school? You seem to be very selective when it suits your purpose.

1. Yes crude price directly affects price at pump. How could it not? Basic math! Refineries also play a role, and living in Illinois July our fuel tax made us no.2 in the nation. Yes when the price cratered it went down, fuel that is. My line of work requires oil by the ton. I have been in business now 30 years, and asphalt is major factor along with transportation. 

2. When Reagonomics kicked in full force in 84 midyear a lot of folks lost jobs, and some of us were lucky. I realize 86 is past, my point being when you live in West Texas/S.E. New Mexico many are competing for the same jobs as one-self. I realized I best get out of there or i'd be in the cemetery along with my daughter. Even the free government surplus food was gone.

3. Again, property taxes in Illinois are extremely high. Cops pension in my lil town of 6k is over 55% of the budget. Same with the school district, which gets 53% of my taxes on home, and close to same on my business. 

4.Everyone who works in the oil-patch KNOWS the risks involved in the volatility of employment. You have 30 years of service and haven't noticed the cycles of up and down over the years? I go back 2 times a year visit friends and relax in 79735. It's the same situation as it was in late 70's. So with your fine education, adapt to the new technologies or find a new career. If I can do it, anyone can. Just a dumb ole' ruffneck without even a high-school diploma. Not trying to sound snarky, but if after 4 yrs of un-employment, I think I would find a different job. 

Edited August 21, 2019 by Old-Ruffneck

[cbrasher1 + 272]

17 hours ago, wrs said:

So it's your position that there are no service companies or drilling contractors or suppliers or anything else making money in the shale patch?  I have to wonder then when a well costs $3.5m to drill and $2-3m to complete, who isn't making any money there?  Seems to me that the people doing the drilling and providing the cement, casings, drilling rigs, sand, pumps, etc, etc, etc would be making money irrespective of the profitability of the operator, assuming they get paid and they do.

Correct, and your prices are pretty close to what I have seen and learned talking with some company men and others.  Well $5 mill to drill, $3-5 to frac(Halli biller) As you stated, watching service companies bringing in their tickets to get signed to get PAID, I don't think they are doing it for free, my company is not.  Once drilled and complete, everyone made money, now, the operator, it's then their show.

[cbrasher1 + 272]

16 hours ago, Old-Ruffneck said:

 I go back 2 times a year visit friends and relax in 79735. It's the same situation as it was in late 70's. So with your fine education, adapt to the new technologies or find a new career. If I can do it, anyone can. Just a dumb ole' ruffneck without even a high-school diploma. Not trying to sound snarky, but if after 4 yrs of un-employment, I think I would find a different job. 

I look forward to your trip and assessment of what you see and hear from others about the industry and take on it.  We are servicing petroleum company x, had 2 rigs running in the Basin, out of budget already, stacked 1(they were picked up by Marathon, will be their first rig in Permian)

[Gangasani Narsi Reddy + 1]

Hi This is Narsi Reddy from India, I am Mechanical engineer. Now I am working with petrofac Emirates LLC, as a Senior piping stress analysis Design and Logout Engineer in oil and gas industry.

Edited August 23, 2019 by Gangasani Narsi Reddy

[Boat + 1,315]

On 8/20/2019 at 12:25 PM, SKEP said:

Canadian refineries are not equipped to handle oil sands dilbit. 

So who cares but a few tar sands workers in Alberta. 

[James Regan + 1,776]

6 hours ago, Gangasani Narsi Reddy said:

Hi This is Narsi Reddy from India, I am Mechanical engineer. Now I am working with petrofac Emirates LLC, as a Senior piping stress analysis Design and Logout Engineer in oil and gas industry.

@Gangasani Narsi Reddy Welcome to the cartel  👍🏻

Edited August 23, 2019 by James Regan