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

[Torinoman]

I really wish I had the cash to buy equipment over the next 6 months. Once oil rebounds, you'll have a host of new companies jumping back into the fray.

What kind of cash would you need to do such a thing?

[Ruffdaddy]

There was a post about that being a myth, and I mentioned that I've never heard anyone say rig count doesn't matter so I'm not sure where that myth was from. Then someone mentioned pad drilling, and how rig count is less indicative of total wells. But the think we all agree rig count is still very relevant. I've never heard anyone say it's not relevant...just that one rig can drill several wells relatively fast.

[Strychnine]

What kind of cash would you need to do such a thing?

Not sure what a used rig goes for these days, but a new AC VFD drill rig like a Nabors pace-x rig or an ICD would run you probably $22-25 million new.

The thing is this will force a lot of older "on the fence" equipment (older mechanical
rigs) out of service for good. You might buy old stuff now but when the market slowly comes back is expect some of the older stacked stuff to never work again.

[Sean88gt]

What kind of cash would you need to do such a thing?

Depends how deep the shit puddle is that the company is standing over.

[Torinoman]

Not sure what a used rig goes for these days, but a new AC VFD drill rig like a Nabors pace-x rig or an ICD would run you probably $22-25 million new.

The thing is this will force a lot of older "on the fence" equipment (older mechanical
rigs) out of service for good. You might buy old stuff now but when the market slowly comes back is expect some of the older stacked stuff to never work again.

Not thinking of buying an entire rig, maybe just the high priced pieces.

Depends how deep the shit puddle is that the company is standing over.

Right. Just wait till 10 ish frakers have gone under and can't unload anything then low ball the shit out of them. Ride it out for the next 5 or 10 guys till the price stabilizes. Sit on it for 6 months.

Then profit?

[Trip McNeely]

Then someone mentioned pad drilling, and how rig count is less indicative of total wells. But the think we all agree rig count is still very relevant. I've never heard anyone say it's not relevant...just that one rig can drill several wells relatively fast.

That was me. And yes it is still relevant, but less telling than it once was for sure. BTW, does anyone know if those Baker Hughes Reports count Air Rigs? I know they don't count workovers/coil units. You can drill all day to HBP.

[Strychnine]

Anyone going to OTC this week?

[Ruffdaddy]

I may or may not be at OTC...I'm not wanting too but may show a few people around and talk to them about some of the stuff unrelated to drilling. I'd also like to catch up with a few friends...but man OTC is just too big and a huge hassle. Plus I truly hate houston.

[Ruffdaddy]

Not thinking of buying an entire rig, maybe just the high priced pieces.



Right. Just wait till 10 ish frakers have gone under and can't unload anything then low ball the shit out of them. Ride it out for the next 5 or 10 guys till the price stabilizes. Sit on it for 6 months.

Then profit?

Drilling rigs and fracing "rigs" are quite different...a frac rig would be wayyy cheaper.

But I don't believe you'll ever make money buying old equipment to resell. There's way too much equipment and vendor inventory to ever make it a profitable venture. Buying a frac service company may make a lot on the upswing however.

[Trip McNeely]

Buying a frac service company may make a lot on the upswing however.

Yes. I've seen invoices. Owning a Frac. Company is like printing money. Lots and lots of risk and liability involved however, so there's that.

[Ruffdaddy]

Yes. I've seen invoices. Owning a Frac. Company is like printing money. Lots and lots of risk and liability involved however, so there's that.

Yeah its not something you just buy into.

I also think there's a lot of possible money is disposal services and wells. But again you gotta know your shit

[Strychnine]

The 8 to 5 part of OTC summed up in four pictures

[Denny]

Nice!

[Gasser64]

So when are we expecting gas prices to skyrocket back up, to where certain people want them to be? I'm guessing end of this year, early next year. I still say they won't easily let it go.

[Ruffdaddy]

The 8 to 5 part of OTC summed up in four pictures

I don't miss it a bit. Can't be anything but more depressing than last year, and even then the parties were somewhat limited.

So when are we expecting gas prices to skyrocket back up, to where certain people want them to be? I'm guessing end of this year, early next year. I still say they won't easily let it go.

It's gonna take something major for them to hit what most want this year (I would guess closer to triple digits...lowest I can see most people wanting is about $85-90). By major I mean war or other huge disruption to supply