$48.22. Keep talking Arabs.
Houston..we have a problem....
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Last: 5 days ago by PeekingDuck
$48.29. Some say $50 within a few weeks and could stay. We'll see...
nm
Thanks, email sent if you want to take down your email address.
quote:
$48.29. Some say $50 within a few weeks and could stay. We'll see...
It's crazy, 2 years ago no one would've thought we'd be so happy to be close to $50
From all I have been told by oilfield clients $55 is a line that anything above it means they will be producing with solid profitability. Any takes on this? That information came from the smaller players that I dealt with like Davis, Galveston Bay, etc.
Producing, most likely. Drilling profitably? If your in a good area, yes. Fringe needs higher
$55 still seems a little bit too low; I thought I heard that the permian was around $62/bbl all-in.
Isn't Galveston Bay selling all of their assets?
quote:Chpt 7 bankruptcy sale.
Isn't Galveston Bay selling all of their assets?
quote:
From all I have been told by oilfield clients $55 is a line that anything above it means they will be producing with solid profitability. Any takes on this? That information came from the smaller players that I dealt with like Davis, Galveston Bay, etc.
$55 would probably allow us to drill just enough to off-set natural declines and maybe add back a bit more. That's assuming you drill with ops generated cash only and not borrow anything.
quote:There are companies that can make money at $35-$40 right now. After all the cuts, I can see this. Before all this cratered in I knew one company that always budgeted low in case of things like this happening. Again, for the offshore market, I was told by one big operator than $71 was their number. $50 should be easy for a lot of onshore companies considering the enormous cost of doing business offshore.
From all I have been told by oilfield clients $55 is a line that anything above it means they will be producing with solid profitability. Any takes on this? That information came from the smaller players that I dealt with like Davis, Galveston Bay, etc.
The problem is that anytime the rig count numbers go up, investors are going to panic and the price of oil will drop. That is happening this morning.
Higher prices mean more drilling. More drilling means more oil and thus the price will drop. It's a catch 22.
Higher prices mean more drilling. More drilling means more oil and thus the price will drop. It's a catch 22.
Fitting meme for the Username as well
Do you think the recent run up in rig numbers is due to operators thinking they can make money or just needing to get rigs out to take care of lease hold requirements for the year. I think the later.
quote:some trader hit the wrong button and shorted oil.
Goldman Sachs just came out and said the oil price recovery isn't going to last. That's the best evidence we could possibly get that the oil recovery is going to last.
quote:In my opinion it is a different story. Often, we see US onshore have someone come from a downstream/ margin business and try to run it that was by focusing on costs. Costs are important but if you aren't seeing the big picture it will bite you.
Do you think the recent run up in rig numbers is due to operators thinking they can make money or just needing to get rigs out to take care of lease hold requirements for the year. I think the later.
US onshore is a cash in-cash out model that requires continuous funding to keep cash flow going. If you severely restrict costs (dropping rigs) you will eventually see the cash out the back side side falter.
Focus should be on reducing costs but keeping the investment wheel spinning.
I am already hearing companies are 8-10% less unexpected on production so far this year and the investment hasn't been there to keep production levels flat. If they don't get rigs moving again production will drop off the table and cash flow becomes a real problem. Some companies won't survive this stage.
I think you will see some companies bring on completion units for their DUCs and targeted drilling locations to try to stabilize the production decline and support cash flow.
That's how I simplify it in my mind.
That was the simplified version?
In my mind it is. There are a tremendous number of factors that are going on right now. But that's what I think is driving the rig increase in this case.
Rumor is Noble about to announce a big acquisition in the Delaware Basin.
Any idea who's selling? 3ROC?
quote:
Rumor is Noble about to announce a big acquisition in the Delaware Basin.
Just what I need.
job security, right?
dp
quote:
job security, right?
Well hopefully just acquisition. Don't think I can handle another merger.
Between divestitures and acquisitions I never have time for my day job.
I wouldn't say everyone.....
PDC enters Delaware with $1.5B acquisition of Arris & 299 resources in reeves & culberson
Lots of deals happening out there
Lots of deals happening out there
Do not believe it is 3ROC
quote:All signs point to Silver Hill / Noble deal.
Do not believe it is 3ROC
That's what I've heard. 40k an acre.
On an unrelated note - does anyone else who uses the DailyFX oil price charts notice that the price data is "delayed" for WTI and only displays "EOD" data for Brent? It used to be real time for both. Anyone have suggestions for (free) live price data?
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