http://oilpro.com/post/13148/breaking-iranian-ships-fire-oil-tanker-persian-gulf

Yikes

Why aren't we at $100 yet

WTI under $60... Time to return the boats.

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WTI under $60... Time to return the boats.

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Colin is pumped again!

Oil below $58. Anyone think we are heading back down into the $40s? Goldman Sachs seems to think $45 is coming in the fall.

Bye bye boat....



Hello insurance check.

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Oil below $58. Anyone think we are heading back down into the $40s? Goldman Sachs seems to think $45 is coming in the fall.

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They'll put out enough scare articles to help it get there.

I love it that anyone thinks these guys can predict bottoms or tops.

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I love it that anyone thinks these guys can predict bottoms or tops.

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I personally don't. But we've seen a decent little slide the last few days, and that was just one line in a few articles I read. Which is why I came here for other opinions.

I have found it interesting that on the way down, American financial institutions were calling the bottom $5 ago, and OPEC was calling the bottom $10 more. Now the narrative has flipped.

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I love it that anyone thinks these guys can predict bottoms or tops.

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I thought you could tell by which ear the earring was in? Or is it a bandana in a pocket?

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the color of the pocket square is like code for what you are willing to do, or so I've been told.

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I love it that anyone thinks these guys can predict bottoms or tops.

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I personally don't. But we've seen a decent little slide the last few days, and that was just one line in a few articles I read. Which is why I came here for other opinions.

I have found it interesting that on the way down, American financial institutions were calling the bottom $5 ago, and OPEC was calling the bottom $10 more. Now the narrative has flipped.

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I wasn't trying to call you out there...rather GS and these other institutions with their WAG's.

things must be getting better - this thread used to be on fire, now its been 21 hrs since a posting...

I've been sayin for a month or two now that I predicted one more drop before it "stabilized", but the difference in my prediction and that of any of the analysts is, I also have said from the beginning that mine was just a gut feel call, and never even tried to justify it with data.

ISIS is in the news again taking over parts of Iraq. Saudi might be getting desperate.

My feeling is that we shouldn't go down from much where we are. Saudi drives OPEC and they are producing flat out and it will catch up to them at some point. I think we have a few more months of this and then it will be a ride.

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In other words, asset prices continue to be set by central bankers, and not free markets, so the GS call does make sense if you believe fundamentals don't matter at all. Still, they should be discussed either way. Rather than being based on the fundamentals, GS, like others, have consistently been off the mark when it comes to oil prices, but refuse to acknowledge it (the agenda at GS has been exposed via Zerohedge). Multiple calls just this week for $45, on top of other economic research, clearly reveal this.

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http://oilprice.com/Energy/Oil-Prices/OPEC-Struggling-To-Keep-Up-The-Pace-In-Oil-Price-War.html

NBL has a few entry level Petroleum Engineer positions in addition to all of the accounting/finance positions listed if anyone is looking.

They posted on their website?

Yes under job listings: http://www.nobleenergyinc.com/careers/career-opportunities-79.html

Thanks, I know someone who just got his diploma that will be interested. I'll pass it along.

Thought we were covering M&A on here. Vanguard Natural Resources is acquiring Eagle Rock Energy.

edit: I see it's a $614mm deal. Interesting.

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Thought we were covering M&A on here. Vanguard Natural Resources is acquiring Eagle Rock Energy.

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Worked for Eagle Rock. They had some acreage in the scoop and some in Alabama. I came on and finished a well that they had already spent 21 million trying to drill. They drilled 5 wells with 3 rigs that year.

I believe we did a bid for them not long ago, pretty obvious they didn't know much what they were doing.

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Thought we were covering M&A on here. Vanguard Natural Resources is acquiring Eagle Rock Energy.

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Worked for Eagle Rock. They had some acreage in the scoop and some in Alabama. I came on and finished a well that they had already spent 21 million trying to drill. They drilled 5 wells with 3 rigs that year.

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21 million?! For an onshore well? I can't even..

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Thought we were covering M&A on here. Vanguard Natural Resources is acquiring Eagle Rock Energy.

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Worked for Eagle Rock. They had some acreage in the scoop and some in Alabama. I came on and finished a well that they had already spent 21 million trying to drill. They drilled 5 wells with 3 rigs that year.

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21 million?! For an onshore well? I can't even..

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It was glorious. Over engineering at its best. I loved every minute of it. They fired the operations manager and hired a guy that was rumored to be a crook. But at least he knew obm was the answer. Which everyone else knew too. But the previous operations manager had lost some at one point and refused to pay that bill again. The fact we were drilling a 16,000' straight hole with only 1400' of pipe set told me everything I needed to know. It was amazing.

Hell is sounds like we all worked an a Eagle Rock deal. Is this the one in Houston where some C level folks are Aggies?

That sounds like the opposite of an over engineered well to me.

Let's just set one string of pipe at 1,400 ft and then see if we can drill to 16,000 ft TVD...

I'm not using OBM because it costs a lot if we have any losses...

I interpreted it as that they only had 1400' of drill pipe on location, which would still be underengineering I guess but I'd put that more on the company man.

I've only worked GOM shelf so $21MM for a 16,000' MD hole would be pretty reasonable for us. What's a typical rig and spread rate look like for a land job like that?

If they only had 1400' of pipe they weren't drilling a 16,000' hole. I assumed it was 1400' of casing and the rest was open hole drilling.

We can drill longer laterals, MD-wise, for 10% of that. TVD-wise we aren't as deep, so lower casing and mud costs, but it still shouldn't be $21 million. It varies based on what formations you're drilling through, but I just can't see how you rack up that much.

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That sounds like the opposite of an over engineered well to me.

Let's just set one string of pipe at 1,400 ft and then see if we can drill to 16,000 ft TVD...

I'm not using OBM because it costs a lot if we have any losses...

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Far from it. I have no idea where some people learn how to drill a well. But the ones that only learn it in a classroom and spend limited time in the field can be a real burden for people in the field trying to execute their plan. Horizon Mud company sold him on a potassium based water based mud. And this mud when ran correctly can be very effective. The springer shale is a very water sensitive shale. The sycamore is unconsolidated. If you don't get something in there to hold it together, it's going to fall in on you even if your waterloss is a two. Gilsonite is the best chemical for the job. Doesn't mix well with potassium based mud.

His solution to hole problems was wiper trips every 2500'. That's something that went away with tricone bits. And in a time sensitive hole makes less sense. Especially when you have a few hundred feet of bromide to drill @ 2' an hour. The whole experience was awesome. They fired everyone. We did an open hole displacement to obm that calculated to be 623 bbls but took 2500 bbls to get it back to surface.

We sidetracked and redrilled the well in less than 20 days. Never lost a bbl of mud. I was out there for 47 days straight soaking up all the knowledge I could like a sponge. It's not very often you get to attempt to team to btm, get stuck, leave a fish in the hole, attempt to get back to your fish, twist off, leave a second fish in the hole, then do an open hole displacement to obm and figure out your hole is a cavern. Then go around everything and drill the hole without a problem.

All because one engineer had lost some obm once, and was going to save a ton of money on casing strings, obm haul off, obm losses, potential environmental impact, and whatever else he was thinking. Way too many boogie men that simply didn't exist.

That well sounds like a huge dustercluck but I have to believe that it was more than 1 person's decision to drill with a potassium system vs OBM. It sounds like a cost/benefit analysis that they got way wrong to me, more than running scared from losing OBM. But you were there and I wasn't so you know better than me I guess.