Why is Baker so damn dumb when it comes BJ?
Baker Hughes teams up with financial firms to create new energy co.
Baker Hughes teams up with financial firms to create new energy co.
JJMt said:
How are the sand companies doing, or is to early in the recovery for that?
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We're paying $0.072/# for all white sand except 40/70 FOB Midland. We're buying 40/70 white for $0.0756/# FOB Midland. I assumed $.03 was what the mine is selling for.
Dang, that's pricey. Market pricing is ~$.015 FOB the mine and $.045 FOB Midland.
Goose06 said:
Given the expectation for a tightening of the sand market, particularly in the Permian, is the consensus that water availability will also become a problem in certain areas?
rdclarke said:Goose06 said:
Given the expectation for a tightening of the sand market, particularly in the Permian, is the consensus that water availability will also become a problem in certain areas?
IMO fresh water will be the biggest issue moving forward. With fracs becoming bigger and bigger the fresh water supply is constantly being put under more and more pressure.
Recycling will need to become a standard for operators moving forward to help reduce this impact.
I would agree with this. I work in Supply Chain for a Big 3 OFS provider and we have seen a decrease of 51% in our cost per mile for trucking in the Permian from 2014 year average over the last two years. It was down 38% for 2015 over 2014 and saw the further redux of 13% this year.aggielee03 said:
In my opinion, what will be felt first amongst service co and operators will be an increase in the trucking costs. Trucking companies will leverage the uptick for increases in services quickly. Interestingly enough several large sand companies are looking into the delivery option as part of their service. I know that Hi-Crush obtained the "sand box" style trucking and delivery style which I have used on a few jobs and was satisfied.
Just as a comparison, we pay $0.0421/# for 100 mesh through our frac service provider. Granted, this is for work in Appalachia not Permian. I feel like the Permian branch at our company always pays a "Permian Premium."TxAg20 said:
We're buying through a service company. That pricing is locked through March. I just looked at an invoice to get that pricing. We bid out several frac companies for 3 fracs a month. That was the cheapest bidder, so maybe they're sticking it to us on sand and giving us a deal on horsepower or chemicals.
The Original AG 76 said:
Kind of interesting how little "business " reaction to that marxist use of the 1953 law to ban drilling in so much of offshore America. Most of the reaction is political.
Could it be that there is a quiet realization that , thanks to the miracles in the onshore side and the massive cost of deepwater, the future of insanely expensive yuge offshore deepwater is very much in doubt ? I've been saying for a couple of years that deepwater is not a very bright prospect going forward. Far too expensive and dangerous. Waaaaaay to much recoverables on land.
What say y'all ?
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Offshore wells are huge producers. No way that will ever go away. Just like land drilling, the technology will get better and they will be more efficient in the long run. It is dangerous, but not as dangerous as you think. The BP accident was the first of its kind will all the hole punched in the GOM. One time thing and everyone starts running to the cliffs as if it is a normal everyday occurrence. Offshore will bounce back in late 2017 and early 2018. Too much money to be made to do nothing...
I have seen that you could use the Congressional Review A(something; CRA) to look at regulations that are imposed. But there is a 60 day window to look at them and roll them back. While you would think that Congress could do it (I think it only takes a simple majority), only once has it been used in the past 10+ years (from my basic, cursory search).BiochemAg97 said:The Original AG 76 said:
Kind of interesting how little "business " reaction to that marxist use of the 1953 law to ban drilling in so much of offshore America. Most of the reaction is political.
Could it be that there is a quiet realization that , thanks to the miracles in the onshore side and the massive cost of deepwater, the future of insanely expensive yuge offshore deepwater is very much in doubt ? I've been saying for a couple of years that deepwater is not a very bright prospect going forward. Far too expensive and dangerous. Waaaaaay to much recoverables on land.
What say y'all ?
I saw the headline and kinda wondered how long it would last. If Obama can all of a sudden use a law from the 50's to ban something, should be possible for a new administration to decide that the interpretation we have had for the last 60 years is more correct than the latest scheme by the Obama administration to stand in the way of the fossil fuel industry.
tommyjohn said:
Offshore is not going away. There will be a period of adjustment coming out of this crash and companies will have to understand how to bring projects online at a lower cost.
Shell is working on Appo and has another project to danction in late 17/18.
BP will sanction MD2 early next year
Anadarko has Shenandoah in the pipeline.
Other discoveries are out there waiting to be developed as well.
Exxon has a billion barrel field in Liza off the coast of Guyana. Not even mentioning Brazil, West Africa, Norway.
If we are talking the U.K. North Sea I would be a bit more pessimistic.
Comeby! said:rdclarke said:Goose06 said:
Given the expectation for a tightening of the sand market, particularly in the Permian, is the consensus that water availability will also become a problem in certain areas?
IMO fresh water will be the biggest issue moving forward. With fracs becoming bigger and bigger the fresh water supply is constantly being put under more and more pressure.
Recycling will need to become a standard for operators moving forward to help reduce this impact.
This, especially in the Permian.