http://www.cnbc.com/id/102084062#


Any butts puckering in the petroplex or was this expected?

I work for an oilfield service company out here and obviously we are busier than ever. Operators keep telling us business as usual. From the people I have spoken to at operators they will begin having meetings next week. It is going to get real interesting and I can definitely see people starting to panic and asking questions. Time will tell.

So it closed yesterday at below 75.

How tight are butts clenched?

Clayton supposedly turned over his rigs.

as did apache.

Heard Laredo laid 6 of em down.

Pioneer considering 3-4 or better. This was a week ago, however, so no telling if that amount has ramped up.

Should start seeing the fallout in february as contracts for 2014 close. Since about early December , we have had a 6-8 people a week asking if we are hiring and I don't mean the normal run of the mill unemployed during an oil boom type of guys. To place it in perspective we averaged 1-2 guys a month during most of 2014.

Apache dropping from 40 to 28 rigs in Permian. Anyone know how long concho, Oxy and Energen are hedged for?

Apache reportedly starting layoffs.

And I can't believe I'm saying this, but WTI up to $48 today...

Had a couple of friends laid off from Apache today. They laid off people across all groups

Getting interesting! I've never experienced this before, holding on tight!

quote:

---

Had a couple of friends laid off from Apache today. They laid off people across all groups

---

I was out at Apache office yesterday and there was definitely nervousness in the air.

Rumor is more apache in midland today. 35 in Tulsa yesterday, midland today, houston tomorrow.

I guess they aren't as hedged as Pioneer or basic?

I'm hearing that Continental sold all of their hedges so their CEO could pay for his divorce

40 more at Apache yesterday

jesus.

How's everyone holding up?

Bleak out here. Every other day the news is good, then the next it is bad. Of all the crap I read everyday, I'm not sure anyone really has a grasp on how long this will last. I do keep hearing that mid to late 2015 prices may bounce to $53-$58 which is good, but it needs to be stable for some time. With the lack of future drilling, when it does bounce back prices may soar extremely high. I get dizzy reading all this stuff....

I'm fine until the 30,000 people or however many moved to the permian basin move away.

Then we may have to actually compete again for utility infrastructure work.

Houston or Midland?

Midland.

Up $3 today. With the lay day of rigs continuing, I see the prices slowly creeping up over the next few months. 2nd quarter will be key...

quote:

---

Up $3 today. With the lay day of rigs continuing, I see the prices slowly creeping up over the next few months. 2nd quarter will be key...

---

no it won't. production won't start to fall until 3Q. that's the timing to see where this thing is truly going to take us.

I know that Concho only hedged the first quarter. Not sure about the others.

Production is falling as we speak with less holes being punched, not supply. There are still over 1500 wells that need to be completed. The 2Q I speak of is when you will probably see the peak of rigs being laid down. As price goes up a little and stabilizes producers will then evaluate their positions. Right now they are still cutting back. Depending on where the price is in May/June and if, and the if is really important in this equation, prices are stable at say $53-$55, then you may start to see a modest increase in drilling. The rig prices will and should be lower and the completion costs(fracing) should be as well. From forecast that I am following, prices should be around $57-$60 by December but there are a lot of other factors that will come into play.

I own a oilfield supply store that specializes in parts for the Pumping Unit. We have definitely seen a drop in belts/sheaves for new Pumping units. The last two years have been phenomenal for belts and sheaves. We are seeing an increase in bearing sales however. Oil companies have definitely shifted focus to maintenance and repair of existing pumping units. We will be ok either way I think, but I hope the price goes back up soon. Too much panic going on around here right now.
The good thing is there have been 1000's of new pumping units added in the last 2-3 years. They all have to be repaired sometime!

Another good friend got the ax today.