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

[Trip McNeely]

So far it hasn't affected anyone up here that I know of. My company just added rigs, both air and super-triples. We do NG, and NGL's though, no oil.
IMO North America should form an OPEC of NatGas. North America(Canada/US/Mexico) produces about 75% of the worlds NatGas right now. Lots of uses and even the ability to convert it to gasoline makes it profitable. We have the opportunity to do big things, but the Anti's who are funded by the Russians and the Middle East are really trying to push these frac bans and make things difficult, facts or no facts presented.

[JJs89lx]

Well.... This is going to be an interesting ride.

[CexMashean]

But a cheaper ride to work!

[Strychnine]

Total Permian Basin rig count was down 20 this week.
Total Texas is down 24 this week.
Total US is down 27 this week.
Canada was up 9 this week, but that's b/c they are VERY seasonal and roads are just now freezing enough to move rigs to some locations up north.


But on the other hand a lot of people in west TX are semi-welcoming of a slow down (like ~$75-85/bbl slow?) to allow infrastructure to catch up to the craziness.

“This is not foreign to those people living in Midland-Odessa and working in the Permian Basin. This won’t come anywhere near undoing the expansion that has been put in place over the last five years."

Although speculation abounds that slumping oil prices could curtail the shale boom, analysts aren’t ready to write off the nation’s growing role as a key player in the global oil market. “What I’m telling clients is: Don’t make a business decision on the assumption that the U.S. will be less important on the world oil market than it is today,” said R.T. Dukes, a senior analyst at Wood Mackenzie, an energy research firm.

It would take a 50 percent reduction in capital budgets across the industry to halt enough drilling activity for shale output to begin declining, Mark Hanson, an analyst at Morningstar in Chicago, told Bloomberg News last week. That probably won’t happen unless crude prices keep dropping and stay down, he said. “When prices collapse, you concentrate on your best stuff,” Hanson said.

This is also interesting

The Eagle Ford Shale, considered the most profitable field, is expected to draw more investment than any other U.S. shale field next year. Capital spending plans could contract over the next several months, but for now Wood Mackenzie forecasts $30.8 billion in investment.

Houston-based EOG Resources, the largest operator in the Eagle Ford has said it remains profitable with slumping oil prices. “At $80 oil, the Eagle Ford will still generate direct after-tax rates of return in excess of 100 percent,” Bill Thomas, chairman and CEO, said to analysts in early November. If oil drops to less than $40 per barrel, EOG would make at least a 10 percent after-tax rate of return, he said.

[slostang281]

I brought home 26k in 4 months @20/hr with no per diem at Sendero working 7/7 with the only "extra" time was during rig moves when I was on days off. When i was working for Nabors I was on track to make 76k/year as a floorhand. If you're a driller and not clearing 110-120, you're doing it wrong.

You made more than I did at Nabors. I was going to make around 46K a year with per diem as a floorhand but they had a split pay period when I was there. Go in on Thursdays and pay period ended Sunday or Monday morning at 6am. It was a fun job but the pay sucked when I was making the same or more working on cars for commission only.

[Strychnine]

..

Bullish bets begin to emerge
This past week Bloomberg reported that oil speculators were boosting their net long positions in West Texas Intermediate crude oil, which is the U.S. oil benchmark. Those speculators increased net-long positions, which are bullish bets, by 14% last week alone. That's the biggest increase in 20 months according to data from the U.S. Commodity Futures Trading Commission. What's just as interesting is not only are traders increasing bullish bets, but short wagers fell by 15% as speculators are beginning to cash out those bearish bets too.

Right now there is growing consensus that the sell-off in oil prices is overdone. However, in going long on oil prices these traders are not only suggesting that oil prices are finished going lower, but that oil prices have plenty of upside from here. That said, these bets aren't necessarily suggesting that oil prices will head back over $100 per barrel, but that oil prices will instead recover rather quickly from the $60 range of recent days to more than $70 per barrel. Such a recovery would enable speculators to make a quick profit on that move upward.

Investor takeaway
Hedge funds are beginning to signal that the oil sell-off is over. They are closing up bearish bets and opening up new bullish bets. That being said, hedge funds aren't always correct so that doesn't mean the oil markets aren't still going to be in a rough patch for some time, but it is a point of reference that investors can keep an eye on.

[KBScobravert]

..

I hope this is right. Low gas prices are great but not if you don't have a job to drive to.

[Ruffdaddy]

All that says is we need more than 50% reduction in capital before prices stabilize.

[Baron Von Crowder]

..

All that says is we need more than 50% reduction in capital before prices stabilize.

[GrayStangGT]

Hopefully this down turn will just send the people who should be working at 7-11 back to 7-11 instead of the oilfield and those of us who have been here the whole time can keep chugging along. There is a lot of idiots in the field right now that have no business being out there.

[Denny]

Hopefully this down turn will just send the people who should be working at 7-11 back to 7-11 instead of the oilfield and those of us who have been here the whole time can keep chugging along. There is a lot of idiots in the field right now that have no business being out there.

You wouldn't believe it if I told you...

[GrayStangGT]

You wouldn't believe it if I told you...

I either hear or see examples of it on a daily basis.

[Strychnine]

Hopefully this down turn will just send the people who should be working at 7-11 back to 7-11 instead of the oilfield and those of us who have been here the whole time can keep chugging along. There is a lot of idiots in the field right now that have no business being out there.

I do not evny you at all. I hate Midland/Odessa, and I definitely made it a point to skip the oil show out there this year.

So enjoy these. I think the 1788 one is my favorite lol

[GrayStangGT]

This is my favorite, I avoid that intersection at all cost. My parents actually live off of 1788 north of 191. I'm sure if you have spent much time out here you have driven past their place many of times.

[LANTIRN]

Those Midland memes make me so glad we moved away from there this year.