You'll go a lot further if you drop your contempt for people not exclusively in the field.
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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.
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Not sure about the oil price. I'm seeing data that shows supply is dropping harder than expected. Deal flow has practically come to a halt. I think the banks will have to show their cards on the next round of bank redeterminations. They've been holding back, kicking the can down the road and not wanting to expose the losers. Once one well regarded public company "pants'd" I feel a domino effect coming with all the bank letting out a collective deep breath. Hope I'm wrong but this appears to be a slow recovery.
quote:I doubt we will see production "ramp up". We may have production stabilize, because $60 is enough to drill and maintain production levels but not grow. I think WTI would need to get closer to $70 for most operators to "ramp up" like we saw. It takes a lot of capital burn to grow production in these shale plays at a certain point.
I know that nothing is definite in the world of O&G, but I've been reading quite a few articles and a lot of speculation points to WTI ~$55-60/bbl and Brent ~$60-65/bbl, even with the unrest in the ME, for the long term and foreseeable future. Their reasoning is the fact that BH's numbers showed only one rig reduction which was the lowest drop in the past 24wks. They believe that producers and drillers are comfortable for ~$60bbl (WTI) and would begin ramping up production.
What do y'all think?
quote:Are you V&M, Process, Surface Systems, OneSubsea, or Drilling?
I don't see it getting any easier for us equipment suppliers.
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I get the feeling that most companies are comfortable where we are now and are trying to hold what they have.
quote:I'd be very surprised if anyone with a drilling program is still working within cash flow. They may be drilling due to leases/contracts or may be private equity backed.
Don't be surprised to see some operators pick up rigs in the second half of this year.
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Iraq to increase production by 26% to defend market share, worsening a somewhat diminishing glut. Interested in OPEC's response come next week.
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Iraq to increase production by 26% to defend market share, worsening a somewhat diminishing glut. Interested in OPEC's response come next week.
Theyre about to be ISIS land anyway, we'll see how that forecast holds up.
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Once the oil gets impacted, Iraq will do whatever we say or well do it for them
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You are both completely wrong about Iraq.
We have very little leverage with their policy makers.
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Just got a random call to drill one well in Oklahoma, maybe. They can't decide if they are going to drill the well or not. Will know by July. Very odd call.
quote:Ol at sixty bucks a barl!quote:
Just got a random call to drill one well in Oklahoma, maybe. They can't decide if they are going to drill the well or not. Will know by July. Very odd call.
There's 'ol in then thar hills I hear.