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I think everyone at this point has done some austerity measures. We just purchased a company we worked with for years for a good price that is much more diversified than us. Now is the time for acquisitions if you have the cash and are smart about it.
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Our small E&P company is swamped right now looking at acquisitions. People throwing money at us to make some deals. Also back to leasing and moving forward again on all projects which is fun!Originally posted by no4njnk View PostComment
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Down 7 total! 53.3% YoYComment
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Dropped 9 last week. Maybe tomorrow will be -1 or -2?Originally posted by Ruffdaddy View Post
BP report confirms America’s rise as energy power
The 2014 statistical review by British Petroleum shows what many already knew about the American oil industry: 2014 was the U.S.’ rise to the top of the world as a petroleum producer.
In much of BP’s analysis of the global energy market in 2014, the U.S. emerged on top. Production grew by 1.6 million barrels per day, making America the only country in the world ever to record three consecutive years of 1 million barrel-a-day or more growth. The growth has continued despite the collapse in oil prices in the second half of 2014 and the slow rise of oil back into the low $60s.
Overall production topped 11.6 million barrels, edging out Saudi Arabia’s 11.5 million and blowing past Russia’s 10.8 million. But U.S. crude exports were at 339,000 barrels a day, far below the Middle East’s 17 million, former Soviet Union states’ 5.9 million, and West Africa’s 4.2 million. The U.S. did export the most crude oil products at 3.7 million barrels, and overall U.S. exports (of crude and produced products) grew from 1.1 million barrels a day in 2005 to 4.1 million in 2014.
Most of the oil that the U.S. imports is from the Western Hemisphere, with Canada, Mexico and Central and South America exporting more than 5.8 million barrels a day to the U.S. Only 1.8 million barrels came from the Middle East, which is the primary supplier for China, India, Japan, and much of the Asian Pacific region. Almost 15 million barrels of Middle Eastern crude flowed to the region between India and the Pacific every day in 2014.
Europe, on the other hand, relied on the former Soviet states for half of its oil in 2014, with the Middle East pumping one-sixth of the continent’s imports. Lawmakers and industry leaders have used the case of Europe’s reliance on Russia to fight against a decades-old crude oil export ban, saying that exportable U.S. crude would be better suited for European refineries and emissions standards.
Many in the oil industry also blame the oil export ban for the price differential between West Texas Intermediate -- the benchmark U.S. crude -- and the world benchmark Brent, which has been trading at $5 or more above WTI. Many believe that lifting the export ban would equalize the prices as the market became more competitive.
Production from U.S. shale plays pushed much of America’s growing influence in the world energy market. The Bakken (North Dakota), Eagle Ford (South Texas) and Permian Basin (West Texas and New Mexico) together added more than 3.5 million barrels of oil production since 2007, according to the Energy Information Administration.
The Permian remains the top producing region at 2.056 million barrels a day and the last major play that continues to grow, according to the June EIA report. This continued growth is despite a price drop of more than half between October 2014 and March and the slashing of oil drilling rigs.
While U.S. production growth continued unabated, BP figures showed that imports dropped from 13.5 million barrels a day in 2005 to 9.2 million barrels a day in 2014. U.S. oil consumption fell by 1.5 million barrels a day in the 10-year period to 19 million in 2014.
The U.S. still consumes 19.9 percent of the world’s crude, more than any other nation. China comes in second with 12.4 percent, while Japan and India use 4.7 and 4.3 percent of crude, respectively.Comment
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Turn Right!Comment
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And prices still go up! yay!
...... fucking bullshitsigpicComment
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Man...the drillers hanging on have had to take huge cuts...like maybe 20-30% off their day rate. But i guess when you have DDs making 400K and MWDs making 200-300K, you can afford to drop salaries.
Hopefully mexico will give us some opportunity with private bidding.Comment
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Drilling is not production.Originally posted by Magnus View PostZOMBIE REAGAN FOR PRESIDENT 2016!!! hehComment
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Fall you motherfucker!Comment
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-2 this week.
That's a drop 28 weeks in a row.Comment
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sigpicComment
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LmfaoComment
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Is The Halliburton - Baker Hughes Merger At Risk Of Falling Apart? Wall Street Is Starting To Think So...
Baker Hughes Stock's Discount To Deal Value
Baker Hughes stock is trading at its widest discount to the Halliburton offer value since January, and the discount has been rising since Mid-April. A widening in this spread is a sign investors see growing risk that the transaction will not be closed. Increased regulatory scrutiny, a lack of updates on required divestitures, more US deal challenges, and a recent hiccup in European regulatory approval may all be contributing to the concern.
Until a deal closes, a take-out stock will rarely trade at full offer value. Until closing, there is always risk the transaction could fall through, and other bidders might not step in to support the value implied by the deal. In a down market, this is especially concerning, as the deal premium props up the take-out target's value relative to its peers (see next slide).
But typically, the discount should diminish over time as the closing date draws closer and closer. The Halliburton - Baker Hughes deal is expected to close late in 2H15, and the discount should be decreasing if the market senses that all is on schedule and on track. An increasing discount, like what we have seen over the past 6-8 weeks, means that Wall Street is increasing bets that the deal won't be completed on schedule / as expected.
In the stock market, there is a subset of traders (merger-arbitrage) that make a living betting on whether announced M&A will close. They play the spread (discount) between a stock's daily price and the value implied by the M&A consideration. Further, big shareholders may hedge their bets as well when they perceive deal closing risk - that can cause the spread to increase.
Here's What Keeps Investors Up At Night...
From the time the Halliburton offer became known until now, Baker Hughes' stock is up 22% while Halliburton's stock is down 17% and Schlumberger's stock is down 7%. Without the offer, the peer group would be performing more similarly, with BHI closing the gap by trading lower. If the Halliburton deal falls through, Baker's stock will plummet as the "artificial" support will be removed.
If the deal closes, Baker Hughes shareholders will receive $19 cash and 1.12 shares of Halliburton: the current value is $68.93. Baker Hughes shares are trading at $62.31.
So What Are The Merger-Arb Guys Sweating?
Earlier this week we reported on market chatter (shown above) that the deal might face some delays in European approval. And Stateside, traders are on edge as Federal Trade Commission and Department of Justices challenges have increased this year. Meanwhile, updates on the businesses Halliburton must to divest for the deal to clear regulatory hurdles have been few and far between aside from some very general commentary on the conference call in April. This is not out of the ordinary, but investors are looking for progress and milestones on the path to closing. Halliburton is marketing its Fixed Cutter and Roller Cone Drill Bits, Directional Drilling, Logging-While-Drilling, and Measurement-While-Drilling businesses, which combined generate $3-$3.5bn in sales.
While we understand the market's concern and understand that a complex transaction like this one could easily encounter some delay, we continue to believe this deal gets done sooner or later. The counter-arguments to the rising merger concerns are: i) the EU delay should be resolved before other deal requisites, ii) the downturn in O&G helps fend off anti-trust concerns for HAL/BHI, and iii) Halliburton has the bench strength on the M&A / legal front to get a transaction like this both closed and integrated effectively.Comment
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-44 international..at least thats in sync with us.
Saudi seems to be getting a sense that oil wont last too much longer in the grand scheme of it allComment
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