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Baker Hughes estimates 20 percent of the wells recently drilled in the United States have not been through completion stages

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From the Baker Hughes layoff article on Fuel Fix. What happens when this starts to come online?

So is Baker cutting 3500 more jobs or did they cut those in the first quarter with the layoffs previously announced?

Awesome!

what are you doing?

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Looks like the landing zone will be around $62 in the short term with spikes up.

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What would drive a spike up?

Correct me if I'm wrong, but cashflow needs, reduced service costs and higher $/bbl will have operators addressing the DUC backlog. The way I see it, there will be a $/bbl ceiling and we have dips as supply comes online from completions.

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Concern about supply disruptions in the ME, for one.

I suspect there is some likelihood of reduced sanctions and increased exports from Iran priced in, and a collapse of the nuclear agreement would drive a small spike in prices.

Saudi is bombing Yemen, and the U.S. is sending ships to the coast to prevent Iranian ships from bringing in weapons to the rebels there. Probably low expectation, but could see things start to escalate if Iran gets upset. I would expect attacks by Iran and retaliation by US allies would probably scuttle the nuclear talks too. I hope Iran realizes that and now is their best shot at getting a favorable deal on the sanctions and just keeps quiet, but who knows what political pressure they are feeling from more radical elements in their government.

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Baker Hughes estimates 20 percent of the wells recently drilled in the United States have not been through completion stages

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this is what we are hearing from our customers as well.

In my opinion the backlog in completions just means the rig count is less meaningful, the uptick will first occur in fracing and not drilling. Still will take some time to get production into positive growth.

Baker Hughes increases layoffs to 10,500.

http://fuelfix.com/blog/2015/04/21/baker-hughes-increases-layoffs-to-10500/

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In my opinion the backlog in completions just means the rig count is less meaningful, the uptick will first occur in fracing and not drilling. Still will take some time to get production into positive growth.

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yes, but many equate uptick in oil price to increase in drilling. Might be a delay this time. Those who have significant revenues based on drilling will be slower to return to profitability even with an uptick in the oil price.

The backlog is going to be interesting to monitor. Both internal at my employer and externally, you always see the rig count plot as an indicator but I would like to see a plot of active frac crews. That would be pretty telling and significant upswings would likely more quickly correlate to supply changes and resulting price swings.

Great job Third Coast!

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Second officer for Military Sealift Command. Still driving boats, just not subsea construction boats.

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Awesome, tell us about the travel/schedule vs. working in the GOM if you don't mind. I am just curious.

**** man, that's insane

Are you still in the gulf or somewhere else?

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Hearing Renewed Unconfirmed Chatter of Potential Exxon Mobil Bid for Anadarko
The Rumor:
Shares of Anadarko Petroleum Corporation APC rose early on Tuesday, on unconfirmed market chatter of potential bid from Exxon Mobil Corporation XOM. The price being mentioned was $120 per share, according to sources.
Last Friday, Reuters reported that Anadarko was considering selling its stake in its Mozambique gas assets, with Exxon Mobil the potential buyer.
Spokespersons for Anadarko and Exxon did not respond to requests for comment.
Anadarko Petroleum shares lost 1% Tuesday, closing at $92.56.


Read more: http://www.benzinga.com/news/15/04/5429569/benzingas-m-a-chatter-for-tuesday-april-21-2015#ixzz3Y2lkwOgC

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Fire up the M&A Exxon rumor mill.

And...here...we...go....

http://www.bloomberg.com/news/articles/2015-04-20/bp-readies-defenses-as-oil-industry-responds-to-shell-s-bg-raid

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BP executives are concerned the company is vulnerable to an opportunistic bid, according to people familiar with the situation. In response, they've stepped up internal reviews of takeover scenarios and war-gamed defense strategies with advisers from firms including Morgan Stanley, said the people, all of whom asked not to be identified discussing a private matter. Exxon Mobil Corp. and Chevron Corp., the two largest U.S. producers, are seen as the only realistic predators.

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They make it sound like Exxon could buy the entire United States out sometimes...

Heard Bob Dudley speak in person on Monday to a somewhat small group. Repeatedly said there has been very little talk at his level. He mentioned he thought Shell way overpaid for BG group.

More layoffs at HAL. Not sure how many/where they're coming from. I heard a rumor that the number was 6k but no idea how informed that is.

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They make it sound like Exxon could buy the entire United States out sometimes...

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They have so much money that they probably could

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I know the knee jerk reaction is naturally to be disgusted by the abstract thought of Exxon buying the U.S., but Imagine what the United States could do with competent executive level leadership and an effective management structure....

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Totally agree. I wish the US would be run more like a business in the sense of working within a budget, trimming excess fat, minimizing loss, etc.. The stuff that a normal business does to be successful. I just get tired of the round the clock speculation of which company Exxon will buy next. I don't care if they buy someone. I just get tired of hearing the rumors that never manifest with them.

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I know the knee jerk reaction is naturally to be disgusted by the abstract thought of Exxon buying the U.S., but Imagine what the United States could do with competent executive level leadership and an effective management structure....

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Totally agree. I wish the US would be run more like a business in the sense of working within a budget, trimming excess fat, minimizing loss, etc.. The stuff that a normal business does to be successful. I just get tired of the round the clock speculation of which company Exxon will buy next. I don't care if they buy someone. I just get tired of hearing the rumors that never manifest with them.

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Or just having a bit of accountability

Hal layoffs up to 9,000.

Two of my team were laid off last week. Skeleton crew of engineers but we're more top heavy now which I think it's the way it has to be.

I may know you.

Why the hate for the rotation schedules?

There's so much **** I could do with my time off. Especially out of Australia being so close to Asia.

I loved rotation work. I racked up travel to 2 dozen countries and did a hell of a lot of golf/fishing/hunting.

My rotation is to south Texas and is an 18/10 rather than 14/14. The 10 days off are nice but it's not long enough to do really extensive international travel.