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

[boh347]

99 cent gas in Kentucky

[Burnadell]

I knew I should have posted the article. Here you go:

https://pubs.spe.org/en/jpt/jpt-arti...tail/?art=6745

"EOG is also cutting capex spending for 2020 by 31% to a new range of $4.3 to $4.7 billion. It said that the planned spending would mean no production growth, but the company would generate “strong returns at $30 oil price.” The activity will be focused in the Permian’s Delaware Basin and the Eagle Ford."

Thanks for sharing that info; good to know. EOG has been paying down its debt for several years, and they are one of the better companies out there.

[boh347]

https://www.cbs7.com/content/news/President-Trump-orders-purchase-of-77-million-barrels-of-oil-to-support-US-oil-producers-568929681.html?fbclid=IwAR31HUOPYee0n1oCKm4Chu6lqZtVD1yqohv38vTy7MFse_vT0E6KdlV3pqM

[JTRichardson]

https://www.cbs7.com/content/news/Pr..._vT0E6KdlV3pqM

I think I see how this helps, but can someone smarter than me explain some long term effects of this move and how it affects the industry?

I am so unfamiliar with these processes once you get the well drilled. Any explanations would be greatly educational for me

[Muddy Bud]

I don't see it helping either. At least not for the exploration side. Our reserve stock piles were really high before this all happened. Now we are maxing them out. This will slow the price of oil in the long term until supplies subcede. This could take years.

[SaltwaterSlick]

Well, the lack of uniformity in what each state is doing has hit us square between the eyes! Our parent company is in PA. Their governor has pretty much shut down the state's businesses, not just the bar/restaurant services, but literally non-life saving business of all areas... Effective today at 5:00 Eastern, our sister company will close its door for 2 weeks... on April 1, everyone will be notified whether to come to work on Monday April 6th or take another week... COVID-19 or oil price crash or whatever, this just got serious for us and my company... We get 80% of our product from this facility... We placed a big stock order they are shipping out before end of business today, but that will be it for at least 3 weeks... I haven't had to lay anyone off yet, but if we don't have product to sell or parts for repairs, we won't be generating any revenue and the pipeline so to speak will run dry pretty dang quick!!

[WItoTX]

A friend who used to work at the Marathon plant in Texas City said 1200 laid off by the end of the day today, and $70 million cut from the budget as of last night.

Oil REALLY needs to come back.

[bphillips]

My wife commented yesterday and had me laughing. "Its odd seeing so many other people have to deal with sudden layoffs and cut hours like y'all always do. Y'all sure hold it together better than most people" haha.

It is quite comical seeing some freak out about rent or mortgage, car payments, food, or any other spending. It is tough no doubt but not the end of the world an theirs will come back much quicker than oil.

Some might try to have a little more compassion next time some oil guys get let go

[Radar]

A friend who used to work at the Marathon plant in Texas City said 1200 laid off by the end of the day today, and $70 million cut from the budget as of last night.

Oil REALLY needs to come back.

I had asked about Marathon earlier this week about them pulling out of the Permian. I had heard they had some money problems.

[Radar]

My wife commented yesterday and had me laughing. "Its odd seeing so many other people have to deal with sudden layoffs and cut hours like y'all always do. Y'all sure hold it together better than most people" haha.

It is quite comical seeing some freak out about rent or mortgage, car payments, food, or any other spending. It is tough no doubt but not the end of the world an theirs will come back much quicker than oil.

Some might try to have a little more compassion next time some oil guys get let go

Yes sir, you are right on all points.

[kyle1974]

My wife commented yesterday and had me laughing. "Its odd seeing so many other people have to deal with sudden layoffs and cut hours like y'all always do. Y'all sure hold it together better than most people" haha.

It is quite comical seeing some freak out about rent or mortgage, car payments, food, or any other spending. It is tough no doubt but not the end of the world an theirs will come back much quicker than oil.

Some might try to have a little more compassion next time some oil guys get let go

I was thinking the same thing reading media reports about people getting laid off in the restaurant industry.

[bphillips]

I was thinking the same thing reading media reports about people getting laid off in the restaurant industry.

Yea it really isn't funny but I have had several in those industries talk about oil guys "whining" when getting laid off and how they should do something more stable. Now some of these in "stable" jobs are being hit and whining because guess what? It sucks

[johnpaul]

LOL.. no kidding. no one is in a strong position at $30 oil... perhaps basic survival.

I’m assuming most of their oil is hedged and has a three way collar on it. I’m no stock market expert but if it drops to an extremely low level the hedge isn’t as effective anymore. We lost a TON of work when it dipped down to $20.50~ on Wednesday. I work for a company that sells water for drilling and completing wells in the Permian Basin.

[boh347]

Yea it really isn't funny but I have had several in those industries talk about oil guys "whining" when getting laid off and how they should do something more stable. Now some of these in "stable" jobs are being hit and whining because guess what? It sucks

Yup karma

[kyle1974]

I’m assuming most of their oil is hedged and has a three way collar on it. I’m no stock market expert but if it drops to an extremely low level the hedge isn’t as effective anymore. We lost a TON of work when it dipped down to $20.50~ on Wednesday. I work for a company that sells water for drilling and completing wells in the Permian Basin.

yes, good point. Hedges are great, but when there's no more money to pay hedged products, it's over.