Hey Oilfield Guys!!

[Artos]

Sorry about that.

That's a really good question maybe an offshore guy can answer. I haven't seen much mention of offshore projects.

Didn't most of the mobile offshore rigs (Gulf region) bolt out of here after the BP fiasco & stoppage of permits by the admin?? I don't know anything about that side either but would think it has to be more to get the goodies out of the ocean floor vs being on dirt.

I always found those rigs pretty fascinating.

[cosmiccowboy]

As I understand it, offshore will react slower but will still eventually be affected if oil prices remain where they are. The reason it will be slower is that those projects are huge undertakings planned years in advance and financial commitments and contracts have already been done. Cancelling a huge offshore project is a lot different than just laying a rig down in South Texas and deciding to not drill the next hole.

[Bily Lovec]

the pipeline is a good thing.
keep in mind, the refineries on the gulf coast will be adding units.
they have to be designed,engineered, constructed, and manned.
10 years later, they have to be rebuilt. tons of maintenance along the way...

yes, all the product will be refined here (good thing) final product will be shipped overseas (good thing)
no, it doesnt immediately affect our native oil supply (good thing)...


Chicago Jesus likes to call these "temporary jobs" if you want to designate 3-4 year jobs that pay over $100k a year temporary, so be it...

[hcshooter]

Let's stay on topic and if need be please take it private.

I for one find this thread very interesting as a lot of knowledge has been shared. For those with inside knowledge please continue to share your experiences.

I have also seen it being discussed about shale does the same apply to offshore?

Jon-Paul I can answer that in a bit when I am on my pc and not phone.

[bphillips]

As I understand it, offshore will react slower but will still eventually be affected if oil prices remain where they are. The reason it will be slower is that those projects are huge undertakings planned years in advance and financial commitments and contracts have already been done. Cancelling a huge offshore project is a lot different than just laying a rig down in South Texas and deciding to not drill the next hole.

Speaking of we got the "for sure" today that the well we are on is the last one for this rig. Hope the best for these hands as they're good guys with families.

[Muddy Bud]

Sorry about that.

That's a really good question maybe an offshore guy can answer. I haven't seen much mention of offshore projects.

We are still going, but got a email today that our retention is probably going to get whacked for this year. Im over seas dont know about the guys in the gulf.

[Bily Lovec]

As I understand it, offshore will react slower but will still eventually be affected if oil prices remain where they are. The reason it will be slower is that those projects are huge undertakings planned years in advance and financial commitments and contracts have already been done. Cancelling a huge offshore project is a lot different than just laying a rig down in South Texas and deciding to not drill the next hole.

one would think...
but not much slower...
we had a Billion $$ + project shelved w/a month's notice.
some really good people are losing their job because of this...


a lot of rigs have been / are being towed south.
Obama and his "lets ruin America tour" have guaranteed the demise of our country....

[cosmiccowboy]

Speaking of we got the "for sure" today that the well we are on is the last one for this rig. Hope the best for these hands as they're good guys with families.

Sorry to hear that...

[trophy8]

Everyone's got to put their two cents in man....you ought to know that by now. I got a life man....and the oil field aint it. My free time is spent in the deer blind. Just like I am now...if I could see a deer I wouldnt be on here now. Like I have said some of you oil field hands have no respect for others opinions merely because they differ from yours....its kinda sad.

I respect your opinion. But not when you lump everyone in the same category. I am 25 years old. The only things i owe money are is my house and one vehicle which i bought 3 months ago because my other truck was 10 years old and had a ton of miles on it. I have a very good chunk in my 401k, a solid chunk in the bank, and I dont live above my means. I have several freinds who are the same way as well. Dont lump everyone together.... And as far as having respect for you? Why should I? You havent earned it.... and likely wont after seeing the narrow minded way you have here.

I hope everyone is doing ok so far. They are shutting down quite a bit up north in the Bakken. They are slowing way down here as well. Good luck fellas!!

[JTRichardson]

We have seen a slight slow down recently, but nothing to really worry about yet. Im not sure how resistant we are to the slow down as we sell parts and commodities for downhole drilling motors and most of our customers are increasing their motor fleet at this point in time. Funny how all of them are expanding their motor fleets and asking for price reductions on parts at the same time

[hcshooter]

Offshore reaction will seem slower but a lot of that is because it is not a visable to the GP as land operations.

First off a deepwater facility is planned years in advance and the hours needed to plan, design, and execute are vastly different than those on land.
Reaction to the deepwater industry is and will be continued to be felt in the industry. Projects that are in late design and construction will continue due to the amount of money already invested, you can't just shut down an investment that large.
What affect does it have? When an offshore project is decided upon it is done so by reserves and econimics of a project and that is based on the a price per barrel of oil. When the project goes on line the you begin to make your profit margin and reclaim the investment cost of course, when you have problems is when the oil drops below a break even margin.
Companies need some return even if operating a facility in deep water at a loss and it is not that easy to shut down operations. The compnay has a certain amount of duties and agreements that must be met to government agencies, partners, etc.

Now for new and upcoming projects that do not have the large investments hitting the ground or drilling the actual wells yet, yes those projects can be shelved.
So some will say , "so what they are still producing in other areas" which may be correct but your profit margins have been lowered, the need for staff has been lowered due to cancelled projects.

So on another thread I try to point out that land and offshore project reduction will be felt more than just direct O&G guys was said to be bs and I was wrong. However lets take a look at how the offshore industry still uses more than most know.

As the cost goes down the majors look for ways to reduce cost in offshore operations and reduce that budget. That could come from cutting amount of personnel on a facility, therefore losing jobs for service related companies as well.
While you may not have actually seen or heard of offshore slow down yet , be patient you will. Those projects that were due to come out that do not will show up later on and it will hurt many different areas, businesses an people.


The overall cost to design, develop, build, install and operate offshore is higher than land. There are cuts happening by all, some are more direct and being hit immediately and some will show their ugly face in due time. Believe me when I say even deepwater is looking at budget cuts and reviewing proposed project timing and delaying those that cannot be profitable at this market price of a barrel of oil.

[M16]

In this business you always need to have an escape plan!!

Sure, easy for you to say. We don't all have hollywood looks and fame as a big TV star to fall back on.

[PondPopper]

Speaking of we got the "for sure" today that the well we are on is the last one for this rig. Hope the best for these hands as they're good guys with families.

DANGIT man.. Hate to hear this news.... Bad bad deal.

[RR 314]

I respect your opinion. But not when you lump everyone in the same category. I am 25 years old. The only things i owe money are is my house and one vehicle which i bought 3 months ago because my other truck was 10 years old and had a ton of miles on it. I have a very good chunk in my 401k, a solid chunk in the bank, and I dont live above my means. I have several freinds who are the same way as well. Dont lump everyone together.... And as far as having respect for you? Why should I? You havent earned it.... and likely wont after seeing the narrow minded way you have here.

I hope everyone is doing ok so far. They are shutting down quite a bit up north in the Bakken. They are slowing way down here as well. Good luck fellas!!

Dang whippersnappers. :-). Good luck, Matt, et al.

[kyle1974]

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