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re: Where do you see o&g headed in the future?
Posted on 3/18/14 at 3:41 pm to redstick13
Posted on 3/18/14 at 3:41 pm to redstick13
quote:
Alright buddy you win. I obviously know nothing of those areas or the industry. Enjoy your internet victory.
Facts always win...you may very well be a good engineer, who knows, you're just a pen name on a message board.
0
Posted on 3/19/14 at 12:45 am to chauncey1
quote:
Compare land rig activity versus offshore activity.
You need to break offshore activity up by deep water and shelf. Shelf activity will fluctuate similar to land work. Deep water is always steady. Those projects are planned years in advance and companies can't just scrap them. There's too much money tied up in the projects. If prices drop it costs very little to buy the contract out on a land rig and shut down a project. Just look at what happened with all the US natural gas plays the past 5 years. The bottom fell out in 2009, there was a small recovery in 2011, and now it has settled in at lower activity rates.
International, deep water, offshore shelf, land. That's been the order of stability from most to least throughout my career. Also, oil plays are traditionally more steady than natural gas.
Posted on 3/19/14 at 6:49 am to redstick13
The numbers I'm looking at...
LINK /
253 drill ships and semi subs running
366 jack ups running
3672 total rigs running
LINK
Deepwater- see 2005 post Katrina/Rita and moratorium.
Deep water requires inventory. Companies can sub rigs out.
It can also take a heavy toll on a company quick. Remember when Burlington got rid of offshore after 20+ dry holes in a row...
I expect land rig count to steadily increase if international shale plays pick up.
LINK /
253 drill ships and semi subs running
366 jack ups running
3672 total rigs running
LINK
Deepwater- see 2005 post Katrina/Rita and moratorium.
Deep water requires inventory. Companies can sub rigs out.
It can also take a heavy toll on a company quick. Remember when Burlington got rid of offshore after 20+ dry holes in a row...
I expect land rig count to steadily increase if international shale plays pick up.
This post was edited on 3/19/14 at 9:27 am
Posted on 3/19/14 at 10:21 am to chauncey1
I'm not trying to persuade anyone about this. I'm just speaking from my perspective as someone with over 20 years industry experience all across the globe.
It's been my experience that land work is very unpredictable and entire projects can be shut down in a flash. I've seen acres of brand new H&P Flex rigs laying in the grass because multiple companies shut down entire fields. Land rigs are cheaper, more generic, and in high supply. Oil companies can opt out of contracts with little repercussion.
New generation deep water rigs remain in high demand. The work environment is much more challenging and there are only so many rigs in existence capable of doing the work. When the deepwater GOM temporarily shut down those rigs simply moved to other locations around the globe.
I think the biggest mistake I ever made was leaving a deep water position overseas and taking one on land in the US. The work was far less stable and I was bored out of my mind within a few months. It's mostly repeating the same processes over and over.
It's been my experience that land work is very unpredictable and entire projects can be shut down in a flash. I've seen acres of brand new H&P Flex rigs laying in the grass because multiple companies shut down entire fields. Land rigs are cheaper, more generic, and in high supply. Oil companies can opt out of contracts with little repercussion.
New generation deep water rigs remain in high demand. The work environment is much more challenging and there are only so many rigs in existence capable of doing the work. When the deepwater GOM temporarily shut down those rigs simply moved to other locations around the globe.
I think the biggest mistake I ever made was leaving a deep water position overseas and taking one on land in the US. The work was far less stable and I was bored out of my mind within a few months. It's mostly repeating the same processes over and over.
Posted on 3/19/14 at 9:58 pm to redstick13
Just look at the number of deep water drill ships under construction and coming into the market over the next five years. That fleet is going to quadruple in size. Those bad boys will be under long term contracts for 5-10 yrs at a minimum. Like was said above- DW =long term and more steady
Posted on 3/19/14 at 10:33 pm to lsugradman
Props to all of you guys for the good information.
All I know is that this is a damn exciting time to be living in Texas and SW Louisiana. I've read recently that there are something like $75 billion in investments taking place between BR west towards Freeport in the next few years. That is alot of good jobs and such.
All I know is that this is a damn exciting time to be living in Texas and SW Louisiana. I've read recently that there are something like $75 billion in investments taking place between BR west towards Freeport in the next few years. That is alot of good jobs and such.
Posted on 3/19/14 at 10:47 pm to lsugradman
So let me get this right, there are 98 deepwater drillships right now with a 86% utilization. 60 new drillships a year for the next 5 years and they are all going to be on contract for 5-10 years... If that's the case I need to buy stock in national oilwell and short transocean.
And if the drillship count quadruples and land count stays the same, 25% of rigs would be offshore.
Red stick, I respect your opinion, but I've seen offshore projects get canceled or "delayed". Ask shell about threads... At the end of the day, if your good at what you do, you have security either way. I also like working land, but preference...
And if the drillship count quadruples and land count stays the same, 25% of rigs would be offshore.
Red stick, I respect your opinion, but I've seen offshore projects get canceled or "delayed". Ask shell about threads... At the end of the day, if your good at what you do, you have security either way. I also like working land, but preference...
This post was edited on 3/19/14 at 11:08 pm
Posted on 3/20/14 at 5:47 am to chauncey1
quote:
Red stick, I respect your opinion, but I've seen offshore projects get canceled or "delayed". Ask shell about threads... At the end of the day, if your good at what you do, you have security either way. I also like working land, but preference...
Fair enough.
I only get to go out on the rigs in support roles now for high end jobs. I'm office staff, which is not so glamorous. I enjoyed the challenges on the rig. If you are good at making snap decisions in a high pressure environment, it doesn't get much more rewarding.
This post was edited on 3/20/14 at 9:35 am
Posted on 3/20/14 at 8:49 am to redstick13
I work at a fuel distribution company and our offshore business (fuel docks on gulf coast) are up 40-50% this year compared to last year. Offshore is definitely picking up and from what we hear from the big boys (major oil companies), it should continue this way.
Posted on 3/20/14 at 8:53 am to redstick13
Are you coordinating these days?
Posted on 3/20/14 at 9:37 am to TheIndulger
I am for the moment. I'm being groomed to take over the country ops manager position. More headaches but it's usually not a good career move to pass on such opportunities.
Posted on 3/20/14 at 11:12 am to redstick13
quote:Can someone tell me the pros/cons of working O&G in Houston vs Lafayette/LC?
Where do you see o&g headed in the future?
I've never really considered moving to Houston until recently. Not sure if dealing with a huge city is worth any greater compensation.
Posted on 3/20/14 at 11:32 am to jimbeam
Laff is service companies, Houston is oil companies. You want to be in Houston.
Posted on 3/20/14 at 11:35 am to GREENHEAD22
Yup
And Lake Charles is downstream
And Lake Charles is downstream
This post was edited on 3/20/14 at 11:36 am
Posted on 3/20/14 at 11:39 am to jimbeam
quote:
greater compensation
That's not necessarily a given.
Posted on 3/20/14 at 1:50 pm to redstick13
If companies do pay less in lafayette, it's because there is more demand to live there than the jobs available. I.e. There are tons of Cajun people who had to move to houston and would like a job back home.
Posted on 3/21/14 at 5:17 am to TheIndulger
Lafayette is typically where operations are located. Company headquarters are located in Houston.
This post was edited on 3/21/14 at 5:18 am
Posted on 3/21/14 at 7:45 am to jimbeam
quote:
Can someone tell me the pros/cons of working O&G in Houston vs Lafayette/LC?
Opportunity and money.
quote:
Not sure if dealing with a huge city is worth any greater compensation.
This is a common misunderstanding of city living...at the end of the day you will live within probably a 1 mile radius and rarely see other parts of the city. And if you live near your work you'll hardly notice that you live in a huge city.
Posted on 3/21/14 at 7:48 am to TheIndulger
quote:
If companies do pay less in lafayette, it's because there is more demand to live there than the jobs available. I.e. There are tons of Cajun people who had to move to houston and would like a job back home.
They pay less in Laffy because the jobs are lesser jobs. If you want to make a career out of O&G, if you have any executive aspirations or want to some day start your own outfit you pretty much will have to spend time and develop a network of contacts in htown. It is the heart of the business, it's where the money or money connections reside.
Posted on 3/21/14 at 9:10 am to cwill
Saw this and it piqued my interest:
PennTex Midstream Partners, LLC launches with the signing of transactions in the Permian and North Louisiana
Pardon my lack of understanding of scale with this stuff, but how big a deal is this in north LA? There isn't much like this (meaning the processing facility in particular) there, right? And how big a deal is whatever pipeline or other infrastructure they'll likely be using?
ETA: also dug this up direct from the company, sounds like it says the same stuff
PennTex Midstream Partners, LLC launches with the signing of transactions in the Permian and North Louisiana
Pardon my lack of understanding of scale with this stuff, but how big a deal is this in north LA? There isn't much like this (meaning the processing facility in particular) there, right? And how big a deal is whatever pipeline or other infrastructure they'll likely be using?
quote:
On March 17, 2014, PennTex closed the formation of PennTex North Louisiana, LLC ("PennTex NLA"). PennTex NLA is a strategic joint venture between PennTex and producers in North Louisiana. The joint venture establishes an area of mutual interest among the parties in North Louisiana for the development of midstream infrastructure to support growing production from its partners and other producers in the area. The initial phase of growth consists of the construction of a 200 MMcf/d cryogenic processing plant and associated natural gas residue and natural gas liquids pipelines. PennTex NLA expects this initial system to be in commercial operations in the first quarter of 2015. PennTex is in discussions with producers regarding additional expansions to its facilities as well as additional midstream services to support regional producers.
ETA: also dug this up direct from the company, sounds like it says the same stuff
This post was edited on 3/21/14 at 9:12 am
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