Oilfield guys... y’all hangin in there?

[Take Dead Aim]

The bad part......dang near everything is tied to the oil field. Everyone will suffer, even the “low gas price idiots”.

Yes many things rely on oil but low prices at the pump does not make everyone suffer. I have this discussion with you pro high oil guys on this site for years and I have yet to be proven wrong. Low oil prices do not hurt the US economy. The US economy has never crashed due to low oil prices. Low oil prices actually spur the economy. All that said I have a bunch tied up in oil stocks and would like the price per barrel to rise significantly.

[txwhitetail]

We expect some smaller ones to slow but most of our main operators still have no plans of slowing due to this. Will see if that changes depending on how long it last or how low oil goes but a couple have told us slow downs will happen in their S Tx or Rockies work and Permian will go on as planned

I haven’t talked to a major or independent with that positive of a response this week.


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[jaime1982]

Where are all the (drill baby drill) comments...

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[boh347]

Where are all the (drill baby drill) comments...

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Really? People are worried about supporting their families and you thought it would be a perfect time to come in here and gloat.

[Radar]

Really? People are worried about supporting their families and you thought it would be a perfect time to come in here and gloat.

I think there is a disconnect in folk's mindset that oil does not affect them if they do not work in the energy sector. The oilfield AFFECTS everyone in some way or another.

[SmallTownHunter]

I have a feeling I'm going to be really busy in the coming months. I'm in the heavy equipment auction biz and cover the Permian. The last drop like this 5-6 years ago I couldn't answer my phone fast enough. Hoping for the best for you guys that are negatively affected.

[Tbar]

It is predicted that 50% of all the small companies in the Permian, Marcellus and Bakken fields will go bankrupt at these prices.

It seems suspicious to me that Russia and the Arabs would pick this point in time to launch a price war.

[saintsfan]

We expect some smaller ones to slow but most of our main operators still have no plans of slowing due to this. Will see if that changes depending on how long it last or how low oil goes but a couple have told us slow downs will happen in their S Tx or Rockies work and Permian will go on as planned

I hope you are right but this is NOT what I'm hearing. Our larger customers are looking to cut quick and deep accross the board. Eagleford, Marcellus, Haynesville, Midland, Delaware, it doesnt seem to matter. Based on what I'm seeing this could be a bad one, unless something changes between the Saudis and Russians.

[Tbar]

We have two H&P rigs working to drill nine wells right now. I suspect any day now they will finish the holes they are on...run casing...then lay down and go to the house. Completion probably won't happen for 12-24 months.

[bphillips]

I haven’t talked to a major or independent with that positive of a response this week.


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I hope you are right but this is NOT what I'm hearing. Our larger customers are looking to cut quick and deep accross the board. Eagleford, Marcellus, Haynesville, Midland, Delaware, it doesnt seem to matter. Based on what I'm seeing this could be a bad one, unless something changes between the Saudis and Russians.

And it may not be through all of their departments but on the drilling side this has come from a couple but not all. One is cutting back drilling but were already doing it due to performance increases. They just don’t need the amount of rigs they had before. That decision was before this happened.

This is also assuming it doesn’t keep getting worse obviously

[Hogmauler]

So glad my oilfield days are behind me. 25 years at Cameron Iron, Cameron Elastomer Technology, and Wyman Gordon literally wore me out. Not counting the lay-offs along the way. Oil field guys are tough as a boot. You cuss your co workers out and it’s done with. You Move and all is cool. Hang in there fellas. Y’all got this!

[Charles]

I'm a none oil guy that is praying for you oil guys.

Everybody (especially in Texas) benefits from a strong oil sector.

[kyle1974]

watch for bigger movements with the public traded companies. They have millions of whiny shareholders who demand immediate action from quarter to quarter.

the majors of the service industry have been dealing with this phenomena for some time now. Revenue dips significantly in one business unit, and the message from the board room is that all business units cut to make up for the losses within a couple. I saw it directly at NOV... Rig division can't make the profit margin the board wants, so they squeak every bit they can out of other business units.

private companies do not have to react the same way. As long as money is being made, they don't have to hit an absolute margin that satisfies shareholders (who're looking at investments across the board).

my personal opinion is that the "super" majors will be OK, and the private companies who aren't over burdened by debt will probably make it. The companies in that middle ground that were chasing an aggressive growth schedule with borrowed money are probably in trouble.

[COACH_EM_UP]

Really? People are worried about supporting their families and you thought it would be a perfect time to come in here and gloat.

You might want to revisit this when oil is up and you are showing off your new $75k diesel truck that you dont even use to pull a trailer, new $50k bass boat, $8k year hunting lease, and all the extra stuff you get when the rest of us has to pay exorbitant prices at the pumps. But dont worry about us. I mean, yours is taken care of, right. SMH!

It is a lose-lose situation with you oil field guys. Shame on the rest of us for being happy that we dont have to pay $2.50 or $3 per gallon for gas. You chastise us for being happy with low prices and you chastise us when we gripe about high prices at the pump. I am not happy that anyone is struggling or losing their job. I am simply happy that I don't have to spend as much for gas and I can spend that money elsewhere. SMDH!

[COACH_EM_UP]

I think there is a disconnect in folk's mindset that oil does not affect them if they do not work in the energy sector. The oilfield AFFECTS everyone in some way or another.

It sure does. My monthly gas bill is lower when the price per barrel is down and my monthly gas bill is higher when the price per barrel is up.