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Posted on 6/24/20 at 8:11 pm to Loup
I went 30 years straight without being laid off. 2020 got me. US O&G in Louisiana is in big trouble.
This post was edited on 6/24/20 at 8:12 pm
Posted on 6/24/20 at 8:17 pm to volod
thanks JBE
Oh...wait...
Thanks you stupid fricking Republicans
Oh...wait...
Thanks you stupid fricking Republicans
Posted on 6/24/20 at 8:17 pm to volod
The oil industry in Louisiana has been dead for at least five years.
Posted on 6/24/20 at 8:31 pm to Mudminnow
Mudminnow, you don't know what you are talking about. The Saudis flooded the market in late March early April with deals that could not be passed up. There was a literal traffic jam at Singapore and there are quite a few in the GOM right now.
Posted on 6/24/20 at 8:40 pm to KiwiHead
quote:
The Saudis flooded the market in late March early April with deals that could not be passed up.
How did they “flood the market”?
Posted on 6/24/20 at 8:45 pm to Loup
quote:
Somehow I've managed to keep a job and not have hours cut through all of this. I'm lucky. I'm tired of worrying about my job. After 6 years you'd think you'd get used to it. Losing my job wouldn't be a big deal financially but I get bored easily.
Been in it for 8 years without being laid off. I will be surprised if I make it through this time. From what I am told it’s way worse than the eighties.
Posted on 6/24/20 at 8:49 pm to tgrbaitn08
quote:
How did they “flood the market”?
Saudi and Russia engaged in a production war while demand was plummeting. They essentially killed off upstream in countries like the US and Oman.
To put it into perspective the US rig count 1 year ago was more than 1,000. It was 249 last week. Only 12 of those rigs are offshore which is what feeds Louisiana's economy.
This post was edited on 6/24/20 at 8:53 pm
Posted on 6/24/20 at 8:56 pm to redstick13
But did they increase productivity or just didn’t close it down? Saying they flooded the market would indicate they increased production
I know the US GOM started shutting down production rigs more than a month ago. Same with the land rigs.
I know the US GOM started shutting down production rigs more than a month ago. Same with the land rigs.
Posted on 6/24/20 at 8:58 pm to redstick13
quote:
redstick13
I know you’re plugged into to rig count and what not.
I realize La oil is done and has been for about 5 years now.
What’s the gas outlook like for La? Seems like that’s all we have going for us at the moment.
Posted on 6/24/20 at 9:02 pm to tgrbaitn08
quote:by flooding the market?
How did they “flood the market”?
Posted on 6/24/20 at 9:03 pm to volod
Thanks John bel
Posted on 6/24/20 at 9:04 pm to Nephropidae
quote:
by flooding the market?
By not cutting back production or by increasing production?
Posted on 6/24/20 at 9:05 pm to tgrbaitn08
They initially increased production and then doubled down by not reducing when it was very obvious they were feeding a supply glut.
As for the natural gas market it isn't affected as much because many of the natural gas players are either hedged or they have a production quota for power generation and such. However almost all of the natural gas is coming from north Louisiana and East Texas (Haynesville). The offshore plays are deepwater oil plays. Louisiana benefits exponentially more from a thriving offshore market. Especially South Louisiana.
As for the natural gas market it isn't affected as much because many of the natural gas players are either hedged or they have a production quota for power generation and such. However almost all of the natural gas is coming from north Louisiana and East Texas (Haynesville). The offshore plays are deepwater oil plays. Louisiana benefits exponentially more from a thriving offshore market. Especially South Louisiana.
This post was edited on 6/24/20 at 9:07 pm
Posted on 6/24/20 at 9:06 pm to tgrbaitn08
Haynesville is arguably the best place to be in gas in 2021 with a strengthening gas price looking to materialize. Going forward louisiana oil and gas looks to be the haynesville play and whatever tiny mom and pop independents drilling conventional wells can survive 2020. US horizontal shale oil is officially dead and on life support.
Posted on 6/24/20 at 9:08 pm to TigerDog83
Believe it or not I’ve gotten some calls about some companies looking to drill wells in the TMS again.
Would be awesome but I’m not betting on it yet.
Would be awesome but I’m not betting on it yet.
Posted on 6/24/20 at 9:09 pm to TigerDog83
PIVOT
chemicals is the future
chemicals is the future
Posted on 6/24/20 at 9:10 pm to tgrbaitn08
From this the price war caused oil prices to drop and they opened the taps and increased production on March 8th. Then weeks later states started going into lockdown making the issue worse.
quote:
I think it was a very big mistake," Saad al-Kaabi told CNBC's Hadley Gamble from Doha. Al-Kaabi is also CEO of Qatar Petroleum. "You know, flooding the market is what caused us to go to a very low level. And then the pandemic basically took it almost to a very dangerous area where people could not afford to produce anymore. And we saw, you know, negative pricing in (U.S. oil benchmark) WTI."
The markets were already being devastated by the crushing drop in demand due to global coronavirus lockdowns. The call to open the taps on oil production pulled the floor from under the market as Saudi Arabia slashed its selling prices and increased production after Russia refused to join its plan to further cut output and boost prices in early March.
Posted on 6/24/20 at 9:13 pm to tgrbaitn08
quote:How about “the market was flooded” not necessarily “they (with intent) realized how far their actions would go to flood the market. The actions pre Covid competing with Russia. Over-production and then lack/waning demand of oil caused oversupply.
By not cutting back production or by increasing production?
This post was edited on 6/24/20 at 9:15 pm
Posted on 6/24/20 at 9:15 pm to Mudminnow
quote:
and they opened the taps and increased production on March 8th. Then weeks later states started going into lockdown making the issue worse.
Yeah I recall it was a perfect (nonperfect for us) storm. Timing couldn’t have been better or worse
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