Texas Oil Billionaire, Endeavor Energy Founder Autry Stephens Dies at 86

https://pgjonline.com/news/2024/august/texas-oil-billionaire-endeavor-energy-founder-autry-stephens-dies-at-86?oly_enc_id=1138C8702801J8V

Could this have any impact on the acquisition between endeavor and Diamondback?

More consolidation... Medallion and EnLink

https://ir.oneok.com/news-and-events/press-releases/2024/08-29-2024-023013839

I had heard Enlink was up for sale for quite some time. Not sure how this impacts them… Oneok is sure gobbling up folks here lately!

Yeah lots of chatter from EnLink folks I know, but not any specifics or even this quick of a timeline.

Yep I had two employees tell me about a month ago they thought they were for sale. Actually reached out to a guy today from there on some follow up projects and now I feel kind of bad… hope they're all good! Oneok seems to keep quite a few folks from the Ops side of things, based on Magellan and Easton acquisitions and people I interact with.

GIP has been wanting out for awhile.

Accidental post

Furlock Bones said:

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GIP has been wanting out for awhile.

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I thought GIP was in it for the long haul? Or at least they were several years ago.

This doesn't seem like the top of the market so I'm a little interested why they want out now.

Reading that XOM, COP, OXY, etc are going to sell off non-core assets

When will the ball get rolling?!

https://www.klgates.com/DC-Circuit-Vacates-New-PHMSA-Rules-Related-to-Natural-Gas-Pipelines-8-28-2024

Quote:

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On 16 August 2024, the D.C. Circuit Court of Appeals issued an opinion vacating portions of new natural gas-related pipeline-safety standards promulgated by the US Pipeline Hazardous Materials Safety Administration (PHMSA), that were part of a more than 10-year agency regulatory process to update its safety standards.1 The new rules were challenged by the Interstate Natural Gas Association of America (INGAA), the trade association for interstate natural gas pipeline companies. Ultimately, the court agreed with INGAA that PHMSA had failed to perform an adequate cost-benefit analysis of four of the proposed rules, a statutory requirement under 49 U.S.C. 60102(b)(3) and (5).

The decision is particularly relevant for pipeline operators because the decision means that operators will not have to comply with the four vacated final rules. It also means that pipelines likely will delay implementing a number of these safety proposals, resulting in a delay in cost-of-service increases or imposition of surcharges on pipelines' shippers.

However, in light of ongoing frustration with PHMSA from members of Congress over perceived delays in updating safety and environmental standards, this is likely to increase pressure on the agency to resolve the issues identified by the court and further advance needed safety reforms.

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Owen Kellogg said:

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Furlock Bones said:

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GIP has been wanting out for awhile.

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I thought GIP was in it for the long haul? Or at least they were several years ago.

This doesn't seem like the top of the market so I'm a little interested why they want out now.

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because it allows them to reset for their next move.

anyone have leads on good quality PMs with midstream facility experience?

GIP is a fund, just like any other private equity. While their holding term may be a little longer, it was still year 6 and 7 for these investments. So not too surprising they sold now.

A couple years ago I would throw my name in the hat. I built midstream facilities for 10 years. I'm on the owner side now and don't miss the contractor life.

Shoot me a PM, I still know some guys that are in the midstream construction game.

I'm on the owner side too

I'm a midstream I&E contractor

Big time layoffs coming to Shell.

🚨 LAYOFF ALERT - 🌏

Shell plans to lay off about 20% of its workforce, about 18,000 employees in its oil exploration, development, and subsurface units as part of an effort to reduce operating expenses by $3 billion by the end of 2025. pic.twitter.com/Ijv3lMn0lU

— The Layoff Tracker 🚨 (@WhatLayoff) August 30, 2024

Damnnnn

It's definitely an employer's market.

this is a bit sensationalized. we have been "reorganizing" in business units all over for months now.

sts7049 said:

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this is a bit sensationalized. we have been "reorganizing" in business units all over for months now.

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Yeah I'm in downstream and we did this last year already, so definitely a headline grabbing title

Six-handle on WTI again.

With OPEC cutting production, but the USA and others picking up the slack, OPEC may have no other choice but to try to put everyone out of business again by driving down the price. Wouldn't be surprised to see something in the 30's in the next 12 months. Can you imagine if the wars ended AND OPEC started producing more...

Premium said:

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With OPEC cutting production, but the USA and others picking up the slack, OPEC may have no other choice but to try to put everyone out of business again by driving down the price. Wouldn't be surprised to see something in the 30's in the next 12 months. Can you imagine if the wars ended AND OPEC started producing more...

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OPEC market flushing doesn't really work. I guess they could try again, but after years of measured rebalancing, it would be bizarre (and hilarious).

I understand the dooming and glooming though. Tough to stay positive sometimes!

Dreigh said:

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Premium said:

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With OPEC cutting production, but the USA and others picking up the slack, OPEC may have no other choice but to try to put everyone out of business again by driving down the price. Wouldn't be surprised to see something in the 30's in the next 12 months. Can you imagine if the wars ended AND OPEC started producing more...

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OPEC market flushing doesn't really work. I guess they could try again, but after years of measured rebalancing, it would be bizarre (and hilarious).

I understand the dooming and glooming though. Tough to stay positive sometimes!

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Yeah the last time they tried it, it's never really gone up too high for very long.

Dreigh said:

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Premium said:

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With OPEC cutting production, but the USA and others picking up the slack, OPEC may have no other choice but to try to put everyone out of business again by driving down the price. Wouldn't be surprised to see something in the 30's in the next 12 months. Can you imagine if the wars ended AND OPEC started producing more...

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OPEC market flushing doesn't really work. I guess they could try again, but after years of measured rebalancing, it would be bizarre (and hilarious).

I understand the dooming and glooming though. Tough to stay positive sometimes!

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The problem is the only OPEC country really willing to cut production is Saudi. How deep and how long are they really willing to cut. Besides cracks are really weak right now so you're going to eventually see refinery crude runs get cut at the marginal refiners. Libya's bbls still appear to be floating even though OPEC talked about delaying cuts... It's hard to see a bull case at the moment. And if OPEC does ultimately lift their cuts, the washout will be brutal. Just saying, it might be time to start buttoning down the hatches. If you assume OPEC pre-announced production ramps, it is a great opportunity for Permian producers to re-evaluate their capex plans. Real chance any wells drilling today will see IP with crude in the $50s or possibly even worse.

I just don't see how the market can clear 2MM bbls/day from Saudi without much lower prices and contango.

All i know is over in my corner of the upstream side of the industry we essentially had a formal meetings where the big wigs said this mini 2-3 year growth cycle is over for now and to hold on to your butts. About 20% of the engineers in my product line were reassigned to other divisions. So I guess the good news is no one was laid off.

Almost posting something like this two weeks ago when WTI fell into the low 70s but didn't want to get too pessimistic. Then Libya started to do Libyan things and rate cut news made it pop so thought maybe I was wrong.

With production cuts rolling off in October, Iran still being able to sell, Iraq cheating numbers, Russia needed to sell as much volume as possible to fund a war, and the US setting record production numbers, I just don't see how Saudi can continue to sit there and be the one to try to prop up prices.

I don't know if there is another price war coming or we will see 30s but think 40s are definitely in store and we will test if the live within cash flow mantra of a lot of E&Ps will stick.

To be real pessimistic, we were in the 90s in Sep 2014 and in the 40s Jan 2015.

In 2014 I had started with an Operator after working for engineering firms. That summer I had a few buddies at that EPC firm working on Exxon projects that all got canceled. It seamed odd at the time but 6 months later realized somebody there has some good foresight about pricing. Wonder if anyone is see current large capital project being cut or delayed.

We build separators, towers, storage vessels etc...This is feeling a LOT like 2019. From 19 to 20, we probably saw a 70% drop in workload. Dunno if the similarity will carry since there is no Covid disruption (currently)...I'd have to go back and dig through emails but we had a supermajor pull all of their POs either late 19 or early 20.

Send me an email, I am always looking for PV shops to bid out

Email sent, thank you