OPEC back to jawboning the price of oil up, feels like 2015 again.

They've cut production by 80,000 a day which is better than nothing. Motiva is starting back up which is also another bright spot. Goldman warned that demand "could fall" considerably due to the storms. Really, in other words "supply" would fall since those refineries aren't up and running. People still "demand" oil/gas, there is just no way of producing when storms hit. There are still places in Houston that don't have full supplies of gas/diesel, or according to Goldman, demand.

nu awlins ag said:

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They've cut production by 80,000 a day which is better than nothing. Motiva is starting back up which is also another bright spot. Goldman warned that demand "could fall" considerably due to the storms. Really, in other words "supply" would fall since those refineries aren't up and running. People still "demand" oil/gas, there is just no way of producing when storms hit. There are still places in Houston that don't have full supplies of gas/diesel, or according to Goldman, demand.

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I'm assume Goldman is saying demand for oil, whereas unsupplied gas stations demonstrate a demand for gasoline.

I will have a really nice Northwest Midland apartment available for sublease starting Oct 23rd and going through lease end of Feb 1st. Reply with your email if interested or know of someone interested. It is a 1 bedroom located in the Anatole on Briarwood complex.

Starting to push the 51$ handle after today's EIA report.

Hopefully 1Q next year we will see a significant uptick in drilling activity.

aggies12thman said:

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Starting to push the 51$ handle after today's EIA report.

Hopefully 1Q next year we will see a significant uptick in drilling activity.

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I wouldn't count on it. We're still seeing gains at $50. A significant uptick in drilling activity would bring prices down further.

Still have a crap load of DUC's out there and not many frac operators to perform them. I could see prices at $50-$55 for next year and maybe a tad higher depending on how demand picks up.

Officially moving to Houston to start my new job next week. Be back near family, new exciting job opportunity and excited to get back out to the coast again for some fall fishing and duck hunting.. Life is good!

Good. Where you moving from?

Fort Worth. Slowly turning into an O&G ghost town with the Barnett companies all pulling out. Still quite a few private companies though.

I know. That area has been slowly dying over the years except for XTO and a few others. What area are you moving to?

Everything is starting to fall into place for prices to strengthen, depending on just how short the cycle is to crank up all those ducs and how quickly OPEC mashes the accelerator again.

nu awlins ag said:

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I know. That area has been slowly dying over the years except for XTO and a few others. What area are you moving to?

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I think I read XTO/Exxon has moved all non-barnett shale specific jobs to the main Exxon campus in the Woodlands.

tamuags08 said:

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nu awlins ag said:

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I know. That area has been slowly dying over the years except for XTO and a few others. What area are you moving to?

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I think I read XTO/Exxon has moved all non-barnett shale specific jobs to the main Exxon campus in the Woodlands.

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I'd bet they move a lot of jobs (from all over) to that new campus.

Exxon, yes, XTO I'm not sure. I deal with some in Ft. Worth for Permian based stuff. Exxon pretty much keeps their hands off of them. A good friend of mine is Mgr. for them in east Texas and he ain't going nowhere.

If that is the case, they'll lose a lot of talent.

Majority of XTO employees will be moved to the Woodlands. Some of the Barnett/East TX ops personnel will remain behind, but only a small percentage. I'm sure there will be a few new companies form with employees not willing to leave FW.

The XTO move was already discussed on this thread months ago. They are moving most in FW to The Woodlands.

nu awlins ag said:

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Exxon, yes, XTO I'm not sure. I deal with some in Ft. Worth for Permian based stuff. Exxon pretty much keeps their hands off of them. A good friend of mine is Mgr. for them in east Texas and he ain't going nowhere.

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I think I know who you are talking about.

Oil prices not going up anytime soon: Problem Children

"However, Libya and Nigeria are pumping out so much new oil that, combined with robust output from the U.S., they are keeping the world well supplied with crude and weighing down prices, said Ian Taylor, chief executive of Vitol Group, the world's largest independent oil trader.

Mr. Taylor said he doesn't see oil reaching $60 a barrel this year. "I would be very surprised to see it with a six in front of it before the end of the year," he said. "I don't think it's going to happen.""

74OA said:

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Oil prices not going up anytime soon: Problem Children

"However, Libya and Nigeria are pumping out so much new oil that, combined with robust output from the U.S., they are keeping the world well supplied with crude and weighing down prices, said Ian Taylor, chief executive of Vitol Group, the world's largest independent oil trader.

Mr. Taylor said he doesn't see oil reaching $60 a barrel this year. "I would be very surprised to see it with a six in front of it before the end of the year," he said. "I don't think it's going to happen.""

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Lots of opinions out there at the moment. Hamm gave a pretty good interview yesterday and touched on the new oil coming out of Africa. He thinks the EIA should revise their numbers down another 300-400k barrels for US crude outlook and that would offset the surge of new production from international plays.

Harold Hamm Interview

Era of cheap oil continues.

The structure of the futures curve finally went into backwardation, which is actually pretty bullish for oil. Inventory levels dropping around the world (good article from Bloomberg about it the other day) and very strong demand growth for crude. I don't think the price of oil is going to take off or anything, but it looks like it will be pretty stable and likely slowly rise going forward.

Agreed. We're actually starting to see the smallest hope of uptick in Subsea. And not in the "we have to be positive for appearances sake". It won't boom, but I'm starting to think we've seen the bottom in Subsea which is earlier than what I expected.

TommyGun said:

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74OA said:

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Oil prices not going up anytime soon: Problem Children

"However, Libya and Nigeria are pumping out so much new oil that, combined with robust output from the U.S., they are keeping the world well supplied with crude and weighing down prices, said Ian Taylor, chief executive of Vitol Group, the world's largest independent oil trader.

Mr. Taylor said he doesn't see oil reaching $60 a barrel this year. "I would be very surprised to see it with a six in front of it before the end of the year," he said. "I don't think it's going to happen.""

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Lots of opinions out there at the moment. Hamm gave a pretty good interview yesterday and touched on the new oil coming out of Africa. He thinks the EIA should revise their numbers down another 300-400k barrels for US crude outlook and that would offset the surge of new production from international plays.

Harold Hamm Interview

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Iraq and Iran aren't anywhere near fully back on line yet, so they need to be factored into the equation, too. I also wonder to what extent the explosion in natural gas might displace some portion of the oil market.......

Oil prices doing pretty well today. Bent over $59. It's only a matter of time (exporting) before wti catches back up a bit.

Bet is the oil producers will extend their cuts past March of 2018. I think many are just now realizing how dependent their economy is on the revenue. Who care's how much you produce, the objective is to make money and maintain the balance sheets of some of these countries. Hedge funds are raising their bets that prices will continue to grow. There is tightening in the market and the next big shoe to drop will be demand by China and Europe going forward.

AgLA06 said:

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Agreed. We're actually starting to see the smallest hope of uptick in Subsea. And not in the "we have to be positive for appearances sake". It won't boom, but I'm starting to think we've seen the bottom in Subsea which is earlier than what I expected.

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Opposite of what we have been seeing recently

If any of you guys are still out of a job or maybe need to get out before the other shoe falls (sorry subsea guys), my company is looking to hire a few engineers for our Completions group based in Fort Worth. Hit me up if anyone is interested. LINK TO JOB BOARD POST

Huge drop in inventories of 6 million barrel vs. expectations of a 756,000 decrease. Some analysts are touting that the markets have largely rebalanced. Citigroup has forecast WTI at $54 a barrel and Brent at $58 in the 4th quarter. Good for the end of 2017 and going into 2018. There is still talk of extending the cuts through 2018...

Looks like the false production reports are starting to show through.

PeekingDuck said:

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Looks like the false production reports are starting to show through.

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It only took 3 years. Think it takes another 3 years to correct?

nu awlins ag said:

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Huge drop in inventories of 6 million barrel vs. expectations of a 756,000 decrease. Some analysts are touting that the markets have largely rebalanced. Citigroup has forecast WTI at $54 a barrel and Brent at $58 in the 4th quarter. Good for the end of 2017 and going into 2018. There is still talk of extending the cuts through 2018...

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The record 2mm bbls of daily exports spooked traders late in the session; that is an amazing number but makes since given the current spread with Brent. Should be interesting to see which way the market goes in coming days, just can't seem to hang on above $50.