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Oil...

Beentown

Dignitary Member
Supporting Member
15,740
154
Sunbury, OH
How are you fellas in the patch doing? Just read an article predicting oil under $20 a barrel. Russia, the whole fuggin Middle East and Venezuela are going to be burning. A gallon of fuel less than a gallon of water, never thought I would see $1 gas again. That is what they were reading in the tea leaves after Iran and Venezuela couldnt agree to slow production.
 

CJD3

Dignitary Member
Supporting Member
14,630
201
NE Ohio
Its going to be another rough year. Word is there will be a number of company's filing for BK. Already 1 company I know of filed the first of this month. More layoffs through out.
The big company's have come back on everyone (associated as a sub contractor on a pad) and beat them bloody for price reductions 2,3 even 4 times.

I know it will come back... The Marcellus and Utica plays are to rich to not drill but I have no idea how long it will take for the industry to rebound even after the price-per-barrel goes back up.
Some days I wonder if I'll be around to see it...
 

Jackalope

Dignitary Member
Staff member
38,841
260
Its going to be another rough year. Word is there will be a number of company's filing for BK. Already 1 company I know of filed the first of this month. More layoffs through out.
The big company's have come back on everyone (associated as a sub contractor on a pad) and beat them bloody for price reductions 2,3 even 4 times.

I know it will come back... The Marcellus and Utica plays are to rich to not drill but I have no idea how long it will take for the industry to rebound even after the price-per-barrel goes back up.
Some days I wonder if I'll be around to see it...

Doubtful any of us will be. This overproduction in oil by OPEC countries is purposefully done to destroy our domestic oil industry. We had a big boom in oil and gas production across the country and our competitors put us out of business. They know Americans can't afford to drill oil at nearly the cost rate they can. They're not going to pull back production until they drive the last nail in the coffin that is our domestic oil industry. Once they've done that they will reintroduce scarcity to drive prices back up.
 

Riverdude

The Happy Hunting Grounds Beyond
Supporting Member
10,254
115
Ashtabula, Ohio
Pretty much everything above is correct. We just laid off 6,000 workers world wide. Last job I was on was the Texas gig that lasted a month for me. Time to move on sadly.
 

Jackalope

Dignitary Member
Staff member
38,841
260
What should have happened is back when Sadam invaded Kuwait and we went over to help liberate them it should have came at a price. We should have told Kuwait. Look, you're in a bad situation, sassan had taken over your lands, you're a concurred people, he owns your industry and oil fields. We can come help you out. Drive saddam out. Give you your country and freedom back and even 75% of your oil field. The 25%? Well. Let's call that the price of freedom.
 
Lower prices at the pump benefit everyone, which is a good thing. But, the loss of jobs cheap oil has created is already devastating and most likely going to get worse. And those of us receiving royalties from the horizontal wells are seeing huge drops in the monthly checks.

I almost bought a chunk of shares of CHK a few weeks ago at $5.00. Yesterday those share were just over $2.00. Things are not looking good for the US in the war on oil.
 

hickslawns

Dignitary Member
Supporting Member
39,721
248
Ohio
I subscribe to several financial newsletters. I feel they offer a good "big picture" opinion on the industry yet still offer details on specific companies. They are not in the industry of oil/gas. They are in the industry of making money. Their analysis are on exploration companies, picks and shovel companies, companies using the end product, pipeline companies. . . .overall, they are quite pessimistic. Even the largest players are taking a beating right now. It will be interesting to see which companies survive, which ones collapse, and which ones thrive as it turns the corner. Interesting, and also sad at the same time because that industry is getting turned upside down right now.
 

Mike

Dignitary Member
Supporting Member
15,840
223
Up Nort
Aren't the countries who's economies are based on oil going to hurt at those low barrel prices too?
 

Riverdude

The Happy Hunting Grounds Beyond
Supporting Member
10,254
115
Ashtabula, Ohio
I don't see it. They are the reason we are all losing our jobs. It was a good ride other then the sacrifice on family life.
 

giles

Cull buck specialist
Supporting Member
"It takes money to make money" right now it's taking. Those other countries workers aren't making 6 figures a year to turn a wrench, we can't compete with peanuts when we have corn.

IMO, those who have made a solid living on the goods, should be happy they had the chance. Time to slow down now and get a job with a future.

My last job/business I made well over your average paying job. It took a bunch of hours and it was basically my life. I was able to take almost 3 years off of work and figure out what was most important to ME. Once I figured all that out I started looking for employment. A year later I took a job that pays $15 an hour... I haven't made this little amount of money since 1998'!

You know what though? I will have a job/career tomorrow and there will always be a tomorrow.

We've had to make some major lifestyle changes to make this money work for us. But that comes down to "what is most important to us". It wasn't that brand new truck, new mini van, swimming pool, or any of those other superficial things.

Some thing in life can't be bought...other things in life can't be told...comes a time in everyone's life that they have to dig deep and make choices. To me, this is what makes a man. Time to dig deep and grab life by the bad and make it your bitch! It's your life, don't let life run it for you. Make it yours!
 

Beentown

Dignitary Member
Supporting Member
15,740
154
Sunbury, OH
Here is the problem as I see it....

I am opposite of what Joe believes. I think these OPEC countries CAN'T stop pumping. They only have one revenue source and radicals beating at their door. They stop pumping and their meager economy slows even more. That gives the radicals even more leverage with a people that is already oppressed by royalty and religious leaders.

When it was flowing for big $ they didn't save it.

They (OPEC) slows the flow we can make it up now unlike before. This puts a whole new spin on their power/position.

Russia based their budget on $50 a barrel for 2016. Imagine loosing half of your income while already living in crushing debt...
 

Ohiosam

*Supporting Member*
11,708
191
Mahoning Co.
In commodities the cure for high prices is high prices and the cure for low prices is low prices. When prices are high demand drops while production increases and the opposite happens with low prices. There have always been and always be boom and bust cycles in commodities.

When prices were high it was hard to see them coming down, it's even harder to see them going up when they're low. But they eventually will, unfortunately there are a lot people negatively affected in the mean time.

IMO the best thing that could happen is for the Saudis and Iranians to start shooting at each other. While we stand back and watch. Kill several birds with one stone.
 

Mike

Dignitary Member
Supporting Member
15,840
223
Up Nort
Here is the problem as I see it....

I am opposite of what Joe believes. I think these OPEC countries CAN'T stop pumping. They only have one revenue source and radicals beating at their door. They stop pumping and their meager economy slows even more. That gives the radicals even more leverage with a people that is already oppressed by royalty and religious leaders.

When it was flowing for big $ they didn't save it.

They (OPEC) slows the flow we can make it up now unlike before. This puts a whole new spin on their power/position.

Russia based their budget on $50 a barrel for 2016. Imagine loosing half of your income while already living in crushing debt...

This was my thinking as well.
 

Riverdude

The Happy Hunting Grounds Beyond
Supporting Member
10,254
115
Ashtabula, Ohio
"It takes money to make money" right now it's taking. Those other countries workers aren't making 6 figures a year to turn a wrench, we can't compete with peanuts when we have corn.

IMO, those who have made a solid living on the goods, should be happy they had the chance. Time to slow down now and get a job with a future.

My last job/business I made well over your average paying job. It took a bunch of hours and it was basically my life. I was able to take almost 3 years off of work and figure out what was most important to ME. Once I figured all that out I started looking for employment. A year later I took a job that pays $15 an hour... I haven't made this little amount of money since 1998'!

You know what though? I will have a job/career tomorrow and there will always be a tomorrow.

We've had to make some major lifestyle changes to make this money work for us. But that comes down to "what is most important to us". It wasn't that brand new truck, new mini van, swimming pool, or any of those other superficial things.

Some thing in life can't be bought...other things in life can't be told...comes a time in everyone's life that they have to dig deep and make choices. To me, this is what makes a man. Time to dig deep and grab life by the bad and make it your bitch! It's your life, don't let life run it for you. Make it yours!

Just wondering what ties you have to the oil field TOO come up with 6 figures. Yes upper people made that, aka Co. Man, Pusher but not ALL of us make that. Yup made some good money but the scarifies us lower paying 3'rd parties make is a fraction. Take the 6 figures and cut it and half for me. My wife is a teacher and had the entire summer off and what did I do? Worked 115 days straight while she sat at home and I worked missing out and the quality of life so many have working 40 hours a week while I was on 40 hours already by Wednesday working 12 hours a day plus drive not to mention with the other Co. I worked for was 24 hours a day, sleep when you can. My choice? Yup but if you have not lived the life please do not fault us for everything we gave up to help support America, the general population, .....ect. Sorry to sound like a pitty pitty me deal. Just my thoughts living the life.
 

Riverdude

The Happy Hunting Grounds Beyond
Supporting Member
10,254
115
Ashtabula, Ohio
Found this some time ago and always cherished it and would send it out TOO some around the holidays.

208705_585356918144102_1815416468_n.jpg
 

bowhunter1023

Owner/Operator
Staff member
48,879
274
Appalachia
I was among the first casualties of this decline and IMP, we are witnessing the collapse of one of the most lucrative industries America has ever known. Despite a decade of experience, I'm convinced there's no work for me in the industry. It was good while it lasted.

What pisses me off is seeing how narrow minded people can be. They gloat about cheap gas, never understanding how wide ranging the negative impact of those prices really is and that in the long run, $1 gas is worse for our economy than $3 gas. Businesses like hotels, restaurants, and many retail establishments are feeling the crunch. Our area of the state is reeling right now. It's sad to see.