And there was much rejoicing in the land.... Gas Prices

[emg]

While we're on the subject of people who get paid too much for what they do:
Professional sports athletes! I mean, am I right? eh?

I've never had a problem with how much athletes make. The way I look at it is, people pay to watch them work and such a low percentage of people can do what they do. People don't pay to watch me manufacturer and I'm easily replaced. Also if your mad about how much they make think of how much the owners make.

BTW this has been a very interesting thread, I don't work in oil and gas, but you guys are making me think it's not so great when gas gets too low. There has to be a happy medium.

Sent from my Nexus 7 using Tapatalk

[ceyko]

I don't directly have a problem with a pro athlete making whatever. I do have a problem with affecting schools. School should be primarily about education and sports later.

[GrayStangGT]

Lower prices wouldn't hit that industry so hard if they didn't spend like teenage girls with Daddy's AmEx Black.

This is especially true on the drilling side, but man service company salesman know how to party. Just about every popular Texas country singer was in Midland for private parties during the oil show week this year. Work hard, play hard (on the companies dime lol).

I have benefited from lots of free bar tabs just being friends with people in drilling.

[GrayStangGT]

So O&G is going to just shut down in america?

No, but most producers are all ready calling for 20-40% cuts from the service companies and those cuts will come in the form of lower wages and lay offs. Rigs will be stacking next month for lots too.

[Mike]

No, but most producers are all ready calling for 20-40% cuts from the service companies and those cuts will come in the form of lower wages and lay offs. Rigs will be stacking next month for lots too.

They could always become train conductors! $$$$$$$$$CHOOOOO$$$CHOOOOO$$$$$$$$$$$

[stangin4lyfe]

They could always become train conductors! $$$$$$$$$CHOOOOO$$$CHOOOOO$$$$$$$$$$$

That's exactly what my buddy does...Halliburton to BNSF

[Strychnine]

Lower prices wouldn't hit that industry so hard if they didn't spend like teenage girls with Daddy's AmEx Black.

This is especially true on the drilling side, but man service company salesman know how to party. Just about every popular Texas country singer was in Midland for private parties during the oil show week this year. Work hard, play hard (on the companies dime lol).

I have benefited from lots of free bar tabs just being friends with people in drilling.

In the early '80s Midland had the largest Rolls Royce dealership in the world (Schaler Rolls-Royce) and also had the greatest ownership of private jets in the country.
re: the 3 acre dealership, in 1980 a Rolls official actually said, "It's a bloody well a castle out in the middle of the desert."


This time around people have definitely been much smarter... but there are still some squirrels out there.
I know a bunch of millionaires who drive nondescript F250s (generally the older guys) and even one Prius, but I also know one or two who like to buy matching Hummer H1s and have them dropped off at their shop on 18 wheeler flatbeds right after interviewing new pilots for their planes.

[Ruffdaddy]

maybe you can explain it to me?

Shale gas costs decently more to produce than conventional, and the Wells are incredibly short lived. So if it costs more to drill and produce than the price per barrel, companies won't drill shale at all.

The oil and gas will not stop (for a year until that horizontal runs dry) but the jobs lost are in drilling, conpleting, servicing, perforating, exploring and many more. Lots of machine shops, fab shops, electronics and automotive facilities will all be hit. All of that work will stop. It will reach pretty far and flood the labor market.

When the prices rebound sharply, all the crap the average joe financed because his fuel bill is 100 less a month is now unafordable.

All we can ask for is a stable and reasonable price.I don't even care for over 100/bbl

[matts5.0]

80-90 would be awesome!

[Strychnine]

All we can ask for is a stable and reasonable price.I don't even care for over 100/bbl

BOA is expecting a 2015 average of $72/bbl for WTI and $77/bbl for Brent.

[Baron Von Crowder]

BOA is expecting a 2015 average of $72/bbl for WTI and $77/bbl for Brent.

What is the magic number that keeps the world from imploding?

[GrayStangGT]

I read through some of a 60+ page outlook yesterday and they were predicting an average of $70 for the first half of 2015 and $80 for the second half with an over all drop in rig count of 18%.

[Strychnine]

What is the magic number that keeps the world from imploding?

Just read this:

Without OPEC action, an outage, or other response, cash cost is the only true floor," Morgan Stanley analyst Adam Longson said. Cash cost is basically what it takes to keep oil production going, not what it takes to make oil production profitable or for a government to hit its budget projection. If you drop below your cash cost on a project, you've got to turn out the lights. As you can see on the far right, the Canadian oil sands and the US shale basins are very expensive to tap. Meanwhile in the Middle East, the Saudis, the Iraqis, and the Iranians basically stick a straw in the ground, and oil comes out.

"Simply slowing supply growth is usually not enough to balance an oversupplied market in the short run," Longson writes. "In commodities without a cartel, existing production must be shut-in. If true, marginal cost of investment is not the relevant metrics, it's variable operating cost, which is closer to $35-$40/bbl on the high end." And these comments imply that this chart from Morgan Stanley, showing cash costs for oil projects around the world, might be the place to find out when things will really ugly in the oil market.

[Strychnine]

with an over all drop in rig count of 18%.

Global or US?

[slostang281]

I just don't care to argue the rest of this thread but...

This is outside Garden City right now. This is not a rig-up yard or a boneyard. These are all turning to the right for Energen as we speak.

My area is bare. They cancelled all drilling contracts on the lease my compressors set on. All of my units are south of Garden City off of highway 33. Traffic has thinned out a lot on 33, 67, 158, and 87. Care to explain why?