That's the opposite of what I saw in a lot of cases. Many groups were so under staffed and employees so overworked that they just stop caring. It was about the only way to deal with never being able to keep up.

quote:

---

Out of curiosity, how often are AFEs completely ignored? Rough estimate.

---

Ignored in what manner?

Not paid without giving a reason why

Procurement is rough right meow

It's not just AFE costs that are ignored. LOE, leasehold and even P&A costs are just not paid.

In my limited experience non payment is almost completely a domestic US onshore problem.

Depending on the area and partners it can be rampant. The areas it is most common are onshore, many partners in a well, and they are small <5% owners usually. I haven't seen any publicly traded companies pulling shenanigans and not paying recently.

quote:

---

That's the opposite of what I saw in a lot of cases. Many groups were so under staffed and employees so overworked that they just stop caring. It was about the only way to deal with never being able to keep up.

---

I was more referring to groups that were overstaffed and under-worked/under-performing and still didn't care (pre bust).

Every good employee has their tipping point I suppose. I knew quite a few great employees who got let go in the 3rd or 4th rounds who were actually kind of relieved at the thought of not having to keep up with the grind anymore. Not sure how I'd feel in that situation, but I can empathize a bit with them.

quote:

---

quote:

---

http://www.oilfieldexpat.com/

This guy has a fantastic blog about different things he sees and has experienced in the industry. I've personally seen many of the things he talks about.

---

Thanks Vander! That blog is the best thing that has happened to me in weeks. Wonderful. Perfection.

---

agreed, good blog.

quote:

---

Not paid without giving a reason why

---

There are typically rules set out in the JOA that deal with non-consent and not paying.

Of literally 1000s of AFEs my company has sent, one has been ignored. It's a trust managed by the Bank of New York. We sent the well proposal, AFE, and an offer to buy them out of the unit with no response. Now that the well is completed, their JIB (which they haven't paid in months) is fairly substantial. They finally called and asked what was going on. Big bills seem to get people's attention. Obviously, their revenue would be suspended until something is worked out.

Rig Count up 17 today.

Yah, took some steam out of the rally this morning; would love to see prices still close above $44 today despite it.

quote:

---

quote:

---

Not paid without giving a reason why

---

There are typically rules set out in the JOA that deal with non-consent and not paying.

Of literally 1000s of AFEs my company has sent, one has been ignored. It's a trust managed by the Bank of New York. We sent the well proposal, AFE, and an offer to buy them out of the unit with no response. Now that the well is completed, their JIB (which they haven't paid in months) is fairly substantial. They finally called and asked what was going on. Big bills seem to get people's attention. Obviously, their revenue would be suspended until something is worked out.

---

If they never responded to the proposal, why would they be getting billed? It would seem they should have been deemed non-consent and subject to payout penalties.

As Zemira said, it's usually the small owners that stop paying bills, and it hasn't occurred yet on new drills (haven't really drilled in my area in the past couple years) or reworks/recompletions. Usually they will just stop paying the standard operating expenses associated with older wells. Once they rack up a few thousand in outstanding invoices we contact them to settle up their account, and then they start trying to make excuses for it.

FYI Range has 2 petroleum engineering positions open in Houston. One drilling, one production.

Do you have any connections at Range? A good friend of ours is a geologist that was just laid off by BP and is interested in one of the job postings.

quote:

---

FYI Range has 2 petroleum engineering positions open in Houston. One drilling, one production.

---

I cant imagine the amount of applicants these will have. Salary will be like $50k.

quote:

---

Do you have any connections at Range? A good friend of ours is a geologist that was just laid off by BP and is interested in one of the job postings.

---

Yes but I do not carry enough weight to influence decisions, especially in geology.
I can't imagine salaries will be under $100k, but I don't know specifics.

quote:

---

quote:

---

FYI Range has 2 petroleum engineering positions open in Houston. One drilling, one production.

---

I cant imagine the amount of applicants these will have. Salary will be like $50k.

---

The way companies are starting to abuse labor it will probably be $40/hr on 1099.

When it bounces back those guys that were able to stick in the game and continue accruing experience yrs will be able to almost name their price.

quote:

---

When it bounces back those guys that were able to stick in the game and continue accruing experience yrs will be able to almost name their price.

---

I call it 'draft pick money'.

quote:

---

When it bounces back those guys that were able to stick in the game and continue accruing experience yrs will be able to almost name their price.

---

We said the same thing in the 80's.... Mostly did NOT turn out that way since it did not come roaring back. The " recovery" was years and years slow plus many companies found out just how horrific they could treat the folks and have very little push back. Many survivors were so whipped that they simply became serfs to the company. Took a decade or 2 for competitive salaries to return.

quote:

---

quote:

---

Are you ever positive?

---

I'd say the guy was pretty spot on with the OP. I'll take his negativity to get his insight...

I will say his original post was spot on roughly 2 years ago. I have been in biz since '88, I have seen 4 or more downturns. However, this one has been the most violent and damaging I have ever seen. But the dynamics of supply and demand (with some geopolitical influences), do not apply the same this time. The world and the economies of many countries are vastly different. Central Banks created and killed this bubble. Most Oil Companies and Service Providers are operated very differently now than in the '80's. In addition, generationally employees are a lot different as well.

I do see a slow snapback with employee talent being at a premium.

---

quote:

---

quote:

---

quote:

---

FYI Range has 2 petroleum engineering positions open in Houston. One drilling, one production.

---

I cant imagine the amount of applicants these will have. Salary will be like $50k.

---

The way companies are starting to abuse labor it will probably be $40/hr on 1099.

---

that is like $88k /postersthathaveneverworked1099

quote:

---

quote:

---

When it bounces back those guys that were able to stick in the game and continue accruing experience yrs will be able to almost name their price.

---

We said the same thing in the 80's.... Mostly did NOT turn out that way since it did not come roaring back. The " recovery" was years and years slow plus many companies found out just how horrific they could treat the folks and have very little push back. Many survivors were so whipped that they simply became serfs to the company. Took a decade or 2 for competitive salaries to return.

---

that may be the case then, but I imagine the salaries will continue to be competitive however; I don't think the hiring train will be like it was 5-6 years ago.

quote:

---

quote:

---

quote:

---

When it bounces back those guys that were able to stick in the game and continue accruing experience yrs will be able to almost name their price.

---

We said the same thing in the 80's.... Mostly did NOT turn out that way since it did not come roaring back. The " recovery" was years and years slow plus many companies found out just how horrific they could treat the folks and have very little push back. Many survivors were so whipped that they simply became serfs to the company. Took a decade or 2 for competitive salaries to return.

---

that may be the case then, but I imagine the salaries will continue to be competitive however; I don't think the hiring train will be like it was 5-6 years ago.

---

I suspect one big difference in 2016 vs 1986 is the diversity of the Texas economy

quote:

---

quote:

---

quote:

---

quote:

---

FYI Range has 2 petroleum engineering positions open in Houston. One drilling, one production.

---

I cant imagine the amount of applicants these will have. Salary will be like $50k.

---

The way companies are starting to abuse labor it will probably be $40/hr on 1099.

---

that is like $88k /postersthathaveneverworked1099

---

Ha. Exactly.

quote:

---

quote:

---

quote:

---

quote:

---

When it bounces back those guys that were able to stick in the game and continue accruing experience yrs will be able to almost name their price.

---

We said the same thing in the 80's.... Mostly did NOT turn out that way since it did not come roaring back. The " recovery" was years and years slow plus many companies found out just how horrific they could treat the folks and have very little push back. Many survivors were so whipped that they simply became serfs to the company. Took a decade or 2 for competitive salaries to return.

---

that may be the case then, but I imagine the salaries will continue to be competitive however; I don't think the hiring train will be like it was 5-6 years ago.

---

I suspect one big difference in 2016 vs 1986 is the diversity of the Texas economy

---

Absolutely. But even with the shale boom in 2009 companies were hiring anyone that was somewhat competent. My guess is that we don't see the labor force in the industry reach levels seen at the end of 2013 for a long long time.

quote:

---

quote:

---

FYI Range has 2 petroleum engineering positions open in Houston. One drilling, one production.

---

I cant imagine the amount of applicants these will have. Salary will be like $50k.

---

I know you're exaggerating a bit, but first year engineers who are able to land jobs are still making around 100k. Range's positions are both for engineers with at least 6 years experience, so I'm sure they'll get compensated well.