Oilfield Workers

[RaginCajun]

It is hard on these streets!!!

I am a landman in Houston, definitely effecting us. About a year ago, we probably had about 200 independent contractors (we are all 1099, LLCs), now we probably have 50?

We still have a few clients giving us work but it is not much. Only thing I did this morning was give one of our field landmen a map. Definitely slow!

I feel that we are about to get hit with a lot of due diligence work with companies selling assets for capital, so should stay employed through this. Just sucks that I really deserve a raise but can't really ask for one in this down time.

Wish I had some extra capital right now, I would try buying into some wells or some minerals for cheap. I have a bud who is reworking some wells and is struggling with $40/oil.

What do you do, rough neck?

[RigPig]

It is hard on these streets!!!

I am a landman in Houston, definitely effecting us. About a year ago, we probably had about 200 independent contractors (we are all 1099, LLCs), now we probably have 50?

We still have a few clients giving us work but it is not much. Only thing I did this morning was give one of our field landmen a map. Definitely slow!

I feel that we are about to get hit with a lot of due diligence work with companies selling assets for capital, so should stay employed through this. Just sucks that I really deserve a raise but can't really ask for one in this down time.

Wish I had some extra capital right now, I would try buying into some wells or some minerals for cheap. I have a bud who is reworking some wells and is struggling with $40/oil.

What do you do, rough neck?

I'm a company man / wellsite sup / consultant - not sure what one you guys go by down south. Completion, Workover & Abandonment.
Things here are so slow I cant even get back on the Rigs, been looking for Rig Manager or Driller jobs but there are so many guys out of work the resume piles are deep! Sooner or later it should pick up again but its not happening anytime soon by the sounds of it.

[RaginCajun]

I'm a company man / wellsite sup / consultant - not sure what one you guys go by down south. Completion, Workover & Abandonment.
Things here are so slow I cant even get back on the Rigs, been looking for Rig Manager or Driller jobs but there are so many guys out of work the resume piles are deep! Sooner or later it should pick up again but its not happening anytime soon by the sounds of it.

yeah man there are so many qualified workers out there competing for jobs, its tough.

i have been hearing that EOG is going to be to ramping up some of their production in 2016 since it is starting to decline, and figuring other big players will follow suit.

are you located in Canada? how is the new government working with oil companies, future projects?

[RigPig]

yeah man there are so many qualified workers out there competing for jobs, its tough.

i have been hearing that EOG is going to be to ramping up some of their production in 2016 since it is starting to decline, and figuring other big players will follow suit.

are you located in Canada? how is the new government working with oil companies, future projects?

Yeah I'm in Canada, I haven't heard anything good/bad about the new Liberal agenda. Really everything will be dictated by the price/bbl of oil. If it decides to climb we will get busy. Although the price is low the rates for all services are also at an all time low. I cant understand why Big oil companies aren't taking advantage of these low costs and drilling or fracing while they can do it at 50% of what it was a year ago. Even if they don't produce the well until the $/bbl goes up. To me it would make sense to punch holes, frac them and run the completion then just sit on them and wait for Oil to climb. Then turn on the tap.
Once oil climbs, everyone starts working, the prices for these services will be climbing at the same rate.

[RaginCajun]

Yeah I'm in Canada, I haven't heard anything good/bad about the new Liberal agenda. Really everything will be dictated by the price/bbl of oil. If it decides to climb we will get busy. Although the price is low the rates for all services are also at an all time low. I cant understand why Big oil companies aren't taking advantage of these low costs and drilling or fracing while they can do it at 50% of what it was a year ago. Even if they don't produce the well until the $/bbl goes up. To me it would make sense to punch holes, frac them and run the completion then just sit on them and wait for Oil to climb. Then turn on the tap. Once oil climbs, everyone starts working, the prices for these services will be climbing at the same rate.

Yeah a lot of our clients have everything 'choked' down to hold the leases and waiting for it to rise.

They are speculating that it won't rebound until 2017, but no one actually knows.

I just wonder if the late Saudi King's wish of taking US shale plays out of commission will in turn hurt them in the long term.

I have only been in O & G for 4 years so still learning more and more everyday! I never knew how lucrative it was and how crazy the markets are!

[lovbyts]

Yeah a lot of our clients have everything 'choked' down to hold the leases and waiting for it to rise.

They are speculating that it won't rebound until 2017, but no one actually knows.

I just wonder if the late Saudi King's wish of taking US shale plays out of commission will in turn hurt them in the long term.

I have only been in O & G for 4 years so still learning more and more everyday! I never knew how lucrative it was and how crazy the markets are!

Can you elaborate on this more? I'm still pretty naive on how most of this works.

[RaginCajun]

Can you elaborate on this more? I'm still pretty naive on how most of this works.

I am too but I will try.

They (the Saudis) can produce a barrel of oil for around $10 a barrel of oil and sell it for $40, thus making a profit. For the US shale plays, some operators need oil to be around $60-75 a barrel to turn a profit. We have to go deep into the ground to find it whereas they only have to a few thousand feet. During down times like the present one, companies will invest in research on finding more economical ways to extract the oil (ex. Horizontal drilling). I'm sure Rigpig could explain the completion part.

One thing that I am still trying to understand is the way contracts and futures. I know that some states were counting on oil to be $80 a barrel for their budgets and now scrambling to make cuts and what not to keep up with the sliding price. I will look more into it and try to find some articles on it.