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re: Oil hits $40
Posted on 3/9/16 at 7:40 am to LSU alum wannabe
Posted on 3/9/16 at 7:40 am to LSU alum wannabe
quote:
Thoughts on the price needed where everybody's happy?
Oil is a commodity so there is no steady price that "makes everyone happy". It's going to fluctuate with supply and demand. When you figure out how to make those steady then we can talk about what price it needs to be at.
Same with corn, rice, beef, coffee,cotton, etc
0
Posted on 3/9/16 at 7:41 am to down time
quote:
For ultra Deepwater dynamically positioned drillships the operators need oil at 60 or 65, this is just an educated guess.
I fear this segment is about to go the way of the dodo bird.
Too expensive and too long to bring to fruition in the age of fracking.
Posted on 3/9/16 at 7:48 am to LSU alum wannabe
quote:
2.00-2.25
I think if you can keep it nationwide avg under 2 (even if it's 1.99 9/10) it's psychologically best for our economy.
Posted on 3/9/16 at 7:49 am to cave canem
The economies of scale are what make many of those projects possible, the good prospects will still be developed because they breakeven over the long term at pretty low prices.
Posted on 3/9/16 at 7:51 am to GoldenD
quote:
The economies of scale are what make many of those projects possible, the good prospects will still be developed because they breakeven over the long term at pretty low prices.
we will see, you could be right.
Posted on 3/9/16 at 7:53 am to cave canem
Take your shots while you can boys. The price will eventually go up and the baws will be making money again. Unfortunately, you'll still be misserbale, butt hurt, and poor. 
Posted on 3/9/16 at 7:54 am to yellowfin
I don't think we're going back to 26 or whatever, and definitely not to the teens like some predicted. I could see a jump up to 45 and then another dive down to the low 30s or so as wells are completed though
This post was edited on 3/9/16 at 7:55 am
Posted on 3/9/16 at 7:55 am to cave canem
quote:
For ultra Deepwater dynamically positioned drillships the operators need oil at 60 or 65, this is just an educated guess.
--------------------------------------------------------------------------------
I fear this segment is about to go the way of the dodo bird.
Too expensive and too long to bring to fruition in the age of fracking.
Sorry but that's not really how it works. Those ultradeepwater rigs are used to appraise and develop very long cycle projects. Ones that may not even see first oil for another 3-5 years when commodity prices are expected to much higher. Or they could be drilling development wells on existing fields and the lives of some of those wells are 20-30 years. Deepwater wells are much less affected by short cycle fluctuations in oil price. Drillship Contracts are signed typically for 5 years so if the operators are not drilling then you are basically throwing money away.
This post was edited on 3/9/16 at 7:58 am
Posted on 3/9/16 at 7:55 am to cave canem
quote:
I fear this segment is about to go the way of the dodo bird.
Too expensive and too long to bring to fruition in the age of fracking.
I don't think that's right. Deep water projects are good because they can weather the fluctuations in oil prices due to their long lifespan.
Posted on 3/9/16 at 7:56 am to JJBTiger2012
quote:
Macmaran
Posted on 3/9/16 at 7:58 am to cave canem
quote:
I fear this segment is about to go the way of the dodo bird.
Posted on 3/9/16 at 7:58 am to Jim Rockford
Hopefully it climbs to a level that doesn't kill south Louisiana's economy but also doesn't inhibit the nation's economy.
$60-$80 would be nice. $100-$120 would be pretty painful. I suspect it will head in the other direction again for a while though.
$60-$80 would be nice. $100-$120 would be pretty painful. I suspect it will head in the other direction again for a while though.
This post was edited on 3/9/16 at 8:00 am
Posted on 3/9/16 at 8:00 am to cave canem
Oh man. Go check out what entire fields produce in shale plays and compare to what a deepwater production facility produces, and your opinion will change.
Posted on 3/9/16 at 8:01 am to iknowmorethanyou
iknowmorethanyou frick off! no more posting before my first cup of coffee
no more posting before my first cup of coffee Posted on 3/9/16 at 8:01 am to TigerFred
yeah if anything deepwater may be all we have left
Posted on 3/9/16 at 8:03 am to yellowfin
quote:
Oil hits $40 yeah if anything deepwater may be all we have left
Posted on 3/9/16 at 8:03 am to TheIndulger
quote:
I don't think that's right. Deep water projects are good because they can weather the fluctuations in oil prices due to their long lifespan.
The glut of new build deepwater rigs is what's killing the deepwater market right now. There are simply too many rigs that require too high a day rate to get the return on their investment.
But typically in the past the deepwater market has been more steady. They haven't been immune this time though and they are still in the cutting stage.
Posted on 3/9/16 at 8:08 am to yellowfin
quote:
yeah if anything deepwater may be all we have left
Hope so. I happen to work for an Offshore O&G focused company, but I am not an O&G guy but rather in IT. So if I need to find another job so be it, not a big of a deal for me personally, but it would affect people I know.
That said, I've heard for us and our competitors, $60/bbl is ok, $70 is good, and anything abobe $80 is ideal.
$50 obviously better than $25, but just low enough to be painful.
Posted on 3/9/16 at 8:08 am to TigerFred
Yea it's something in the range of 10-20 wells in the shale plays to get the production of 1 deepwater well. That's not taking into consideration the life expectancy of each. Shale wells peter out much faster.
You need a lot of straws in shale.
You need a lot of straws in shale.
Posted on 3/9/16 at 8:12 am to Jim Rockford
We laid off 24 people in the last 2 days at the office I work at.
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