March 30, 20205 yr Blip in the grid took down a few plants in the area. Luckily for us it was just a few minor things. Big flash in the sky like lightning. Probably exploded transformer and then instant flares across the channel
March 30, 20205 yr Oil just dipped back below $20/BBL My office is in a 10 story building on Wall Street in the center of downtown Midland. This morning, construction workers are diligently building a $15 Million park across the street where the courthouse used to be. I pulled up to the front door and parked on the curb right outside. I haven't been able to do that on a Monday morning since I moved in here a couple of years ago. I had to use an access card to get into the lobby. Then again to get the elevator to go to my floor. Whereas normally, the lobby and elevators are open during normal business hours. When the doors to my floor opened, it was completely dark, I had to fumble around for a few minutes just to find the light switch. Then I let myself into my office. It's eerie being the only person on my floor at 10am on a Monday morning. Several folks I've talked to are planning to just "sit back and wait this out." But I don't have that luxury. I've spent a lot of time thinking about pivoting to another industry, but seeing as this is kind of a one-horse town, it will be quite difficult to do without moving. I own a house here in Midland, that I almost certainly can't sell, so I'm feeling stuck. I'm wearing my thinking cap out trying to find a way to benefit from this downturn and I'm running out of ideas. Rant over.
March 30, 20205 yr Any engineers on here successfully transition to another industry? I'm contemplating it more and more?
March 30, 20205 yr 34 minutes ago, Dr. Beeper said: I don’t see why people on here would not view this as a magnificent buying opportunity. Might be at some point. Right now we are getting cancellation notices from our oil purchasers starting May 1. So, not sure how long that will go on, and how or if it will effect well performance when the wells are put back on production. I think most people are just trying to strategize on how to stay a float, for who knows how long. I'm sure there are companies that are in a position to take advantage, but many more are not. Edited March 30, 20205 yr by sunset87
March 30, 20205 yr 36 minutes ago, OilChuck said: Any engineers on here successfully transition to another industry? I'm contemplating it more and more? I used to work mwd / directional drilling / 1999 dip / built homes / contract services for refineries, petro chem, mid stream, utilities
March 30, 20205 yr 24 minutes ago, Dr. Beeper said: I don’t see why people on here would not view this as a magnificent buying opportunity. We are trying to buy PDP
March 30, 20205 yr 1 hour ago, BTW said:so I'm feeling stuck. I'm wearing my thinking cap out trying to find a way to benefit from this downturn and I'm running out of ideas. Rant over. I’d ride that donkey until it falls over.
March 30, 20205 yr 3 hours ago, BLKNSTY said: March 30, 2020 @9:57ET, WTI @$19.99 Sent from my iPhone using Tapatalk That's "bodies in trees" bad. Ouch. Dad was a small operator in the 1980's when oil dropped from about $30/brl to single digits, wiped out everything we owned. It's a rough business, always boom or bust. CHIEF
March 30, 20205 yr I’ve got a good friend in the industry that got laid off from a service and repair shop here in Houston. He’s been in the oil field all of his life. It’s all he has ever done, so I’m not sure what he’s going to be able to find. After working for a oil & gas manufacturing company for 12 years, I got to know a lot of people that have no skills outside of the oil field. This is going to be brutal for them.
March 30, 20205 yr Just need everyone to do like I do and drive around aimlessly through town for about an hour everyday and dream of better ways to make money.
March 30, 20205 yr Waiting for Russia to come in and buy a bunch of companies and then go back to the negotiating table.
March 30, 20205 yr I was easily 4 tanks of gas a week. Going on 1 tank the past 3 weeks. sorry for crashing the market guys
March 30, 20205 yr 16 minutes ago, HoustonFrog said: Bakken player likely filing bk tomorrow Whiting?
March 30, 20205 yr 5 hours ago, Angry Gorilla said: We are trying to buy PDP Is this some sort of new shitty liquor or flavored whiskey? Sounds horrible.
March 30, 20205 yr 5 hours ago, OilChuck said: Any engineers on here successfully transition to another industry? I'm contemplating it more and more? Not an engineer but all my peers are, and my position is typically filled by ME's. I went from a decade in offshore construction, to 5 years of onshore heavylift/transport, which I hated. I honestly hated going to work every single day; ~65-70 hour weeks, 50-60k miles driving every year, etc. and PM's were the only ones salaried. Then someone came and offered 100+% more to come back to O&G, this time midstream. I feel I am about to be fucked royally, but the way I looked at it at the time was it would take me 2 years of doing something I hated, to replace this last year, which has been pretty cool work. They told us we are good thru Q3 but that shit changes daily, and nothing would surprise me. So I'm in the position of finally making the type of money to enjoy life in an entirely new way, but having to save it all because I'm likely going to be out of a job soon. And when you are not an engineer, but most of your peers are, and there's a bunch of them available, it gets...difficult. I left my last place in great terms, but I really, really, don't want to go back there. Then again, we do what we don't want to when it comes to keeping the family up. Good luck to those out there that have already been RIF'd, hope you land somewhere soon.
March 30, 20205 yr Fuck, man. Just reading this thread makes me sick. I'm not in the business, but I grew up in it, and so did my wife. Houston kids, O&G dads. They were a bit insulated -- my old man was a regulator for a long time, hit some big time with Enron, and was still with them when they crashed (but, he was a solid pipeline guy, and kept transitioning along with the assets till retirement), and my FIL was an accountant for an oil co his whole career. Got a lot of friends directly in or connected to the business. This is horrific, and it kills me to see it happening in real time. You guys have my genuine sympathy. I'm truly sorry.
March 30, 20205 yr 58 minutes ago, fattyflattie said: So I'm in the position of finally making the type of money to enjoy life in an entirely new way, but having to save it all I regularly tell my wife that we can not live the lifestyle that my income would normally allow because there is no stability in it. If I was a doctor or something that didn’t live in fear of a crash every day sure we could buy that new house or take the big trips but we should probably live like I make ⅓-½ of what I really do. We still live a great life but nowhere near what someone would expect at our AGI. Edited March 30, 20205 yr by Archer
March 30, 20205 yr As long as there is money converting cow farts into vinegar I'll continue to have a job. But even then I'm looking to get completely out of oil and gas/ chemical field forever in the next 3 years
March 30, 20205 yr Gotta beYep. They drew down their facility last week. Has all the makings of a pre pack deal.
March 30, 20205 yr 11 minutes ago, Dr. Beeper said: We live off my salary, and all bonus/stock/side hustle goes to tax, life insurance, trips, etc. My goal is to grow the side hustle larger than everything else. I’m gonna do it now. We are fairly similar but don’t use quite my full salary. Major downer is not only O&G in the dumpster but I have a hospitality side hustle investment that could very well go tits up too with all of the SiP orders.
March 30, 20205 yr 1 hour ago, Brisketexan said: Fuck, man. Just reading this thread makes me sick. I'm not in the business, but I grew up in it, and so did my wife. Houston kids, O&G dads. They were a bit insulated -- my old man was a regulator for a long time, hit some big time with Enron, and was still with them when they crashed (but, he was a solid pipeline guy, and kept transitioning along with the assets till retirement), and my FIL was an accountant for an oil co his whole career. Got a lot of friends directly in or connected to the business. This is horrific, and it kills me to see it happening in real time. You guys have my genuine sympathy. I'm truly sorry. Same here. Sorry you guys are going through this. I went through it back in 2008 and it was rough but I recovered, you all will too. This too shall pass.
March 31, 20205 yr 1 hour ago, Dr. Beeper said: What people don’t realize is it’s been happening for 5.5 years now. This is just the reckoning. The industry capitulation. I think from here we have a small u-shape recovery. But then we will persist like that for another 5 years absent another black swan or geopolitical event. Can you explain your thinking on these points?
March 31, 20205 yr Pioneer/Parsley requested formal hearing for Texas production quotas. https://www.spglobal.com/platts/en/market-insights/latest-news/natural-gas/033020-pioneer-parsley-request-emergency-hearing-for-texas-production-quotas
March 31, 20205 yr 37 minutes ago, Neonmoon said: Pioneer/Parsley requested formal hearing for Texas production quotas. https://www.spglobal.com/platts/en/market-insights/latest-news/natural-gas/033020-pioneer-parsley-request-emergency-hearing-for-texas-production-quotas
March 31, 20205 yr Isn't that going to happen whether they like it or not? I assume they are trying to keep as many afloat as possible by cutting production? Will it really matter if SA and Russia continue their price war?
March 31, 20205 yr Shitty thing... if we get to where the economy opens back up to close to normal by the end of summer, we’ll be looking at $4.00/ gasoline with all the refineries ramping down. That’ll make things good
March 31, 20205 yr 9 minutes ago, Dr. Beeper said: Let’s you and I build some refineries. How much money you got? Not much right now. Lol. And that was more of a “that would be our shit ass luck” type of comment. Edited March 31, 20205 yr by Trey3216
March 31, 20205 yr 9 minutes ago, Dr. Beeper said: June 1st might be a good time to buy it at half its current value. That's why I said "keep an eye on it". (And then I deleted my post because this thread doesn't exactly have an investment tenor to it.)
March 31, 20205 yr 44 minutes ago, Dr. Beeper said: I think it’s dependent upon which pipeline they ultimately flow into. And no, this isn’t a price war issue. This is a “the world is shut down and we don’t need crude for anything” issue. Shitter’s full. I completely understand what you are saying saying, but isn't there a price where even Russia and SA don't want to go? At what point do they finally cut their production? Wouldn't it behoove them to do so as soon as possible? They can't possibly keep pumping a the rates they are for too much longer. Hell, they will run out of places to store it before too long.
March 31, 20205 yr 32 minutes ago, Trey3216 said: Not much right now. Lol. And that was more of a “that would be our shit ass luck” type of comment. Our shit ass luck is gas goes to $4.00 over the summer, the public hates Trump even more because of gas prices, Biden has a medical issue and is replaced by Bernie, Bernie wins in a landslide and thinks it’s a referendum on him and the first thing he does is ban fracing and drilling on Fed land just as the industry starts to recover. That would be our luck. Not to get too CR Edited March 31, 20205 yr by Archer
March 31, 20205 yr 8 hours ago, Trey3216 said: Shitty thing... if we get to where the economy opens back up to close to normal by the end of summer, we’ll be looking at $4.00/ gasoline with all the refineries ramping down. That’ll make things good Refineries can ramp up relatively quickly. There's also a good amount of product in storage that can be drawn down while things are brought online.
March 31, 20205 yr 9 hours ago, Dr. Beeper said: Let’s you and I build some refineries. How much money you got? About $3.50
March 31, 20205 yr 10 hours ago, Hate said: I completely understand what you are saying saying, but isn't there a price where even Russia and SA don't want to go? At what point do they finally cut their production? Wouldn't it behoove them to do so as soon as possible? They can't possibly keep pumping a the rates they are for too much longer. Hell, they will run out of places to store it before too long. "Saudi Aramco, the monopoly oil producer in Saudi Arabia, boasts an extraction cost of about $2.80 a barrel, according to the prospectus for last year's initial public offering of its shares." https://www.washingtonpost.com/business/energy/by-pumping-at-will-saudi-arabia-hurts-oil-investment/2020/03/15/189505da-6693-11ea-8a8e-5c5336b32760_story.html Granted, they can't run their kingdom at these price levels, but their cost of production is the cheapest in the world. So if their sovereign wealth fund can prop things up while they wait out Russia, they can turn a profit at these prices and even lower. There isn't a single US E&P making money at these prices.
March 31, 20205 yr But by then, World oil demand will be falling? This feels like a last gasp for these guys. Or no?
March 31, 20205 yr "Saudi Aramco, the monopoly oil producer in Saudi Arabia, boasts an extraction cost of about $2.80 a barrel, according to the prospectus for last year's initial public offering of its shares."https://www.washingtonpost.com/business/energy/by-pumping-at-will-saudi-arabia-hurts-oil-investment/2020/03/15/189505da-6693-11ea-8a8e-5c5336b32760_story.htmlGranted, they can't run their kingdom at these price levels, but their cost of production is the cheapest in the world. So if their sovereign wealth fund can prop things up while they wait out Russia, they can turn a profit at these prices and even lower. There isn't a single US E&P making money at these prices.Damn...I wonder what it is truly is for Russia. There is no way it’s that inexpensive for them.
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