Oilfield Workers

[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.