Cyp0111 said:

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HHP, they pushed the envelope. Now they're gonna got the rug pulled, again.

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Now do casing

I know O&G gas loves abbreviations and acronyms more than the military, but could we maybe try to take an extra second or two and spell things out (like company names) so some of us with less experience in that specific segment aren't guessing?

AgLA06 said:

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I know O&G gas loves abbreviations and acronyms more than the military, but could we maybe try to take an extra second or two and spell things out (like company names) so some of us with less experience in that specific segment aren't guessing?

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Cyp is stating that the frac service industry as a whole is responsible for this (hydraulic horsepower is a term for measuring fracing capability). As fracing crews/manufacturers of frac fleets oversaturated north america land in 2014 with fracing capabilities at rock bottom prices. And there has been a rebound post covid, especially post ukraine war that also got smoked with a warm winter/freeport shutdown.

Cyp's answer to this, is that fracing companies stop doing what their whole business model depends on - raising debt, manufacturing equipment, and running crews to chase a profit.

He is acting like the last link in a whole chain of capitalists companies trying to make money in oil and gas is responsible for overproduction and low oil prices.

If only frac companies would just fall on their sword so Cyp's operations could produce oil while no one else brings on more oil. No one rain drop thinks they are responsible for the storm.

Cyp0111 said:

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oh, im not an operator. To be clear, operators generally are terrible allocators unless boards/shareholders are all over them.

Goes with the territory with a depleting asset I guess.

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I believe from your posting history you're in M&A. Of course the only answer out of this is to roll up all of these companies into a consolidated few.

If you want a look at where this is headed, talk to the casing providers. They're the first to know when rigs are getting dropped, typically before even the rig contractor,as most people order casing several months in advance. Ask them which direction Q2 and Q3 pipe volumes are going. Hint, it's down. Significantly.

I wasn't going to reply to him yesterday but you are correct. The cynicism seems pretty one sided from him

You will see prices go negative on diffs in areas that need economic shut ins.