Crude oil is $86 today.... beginning of the end?

Modern medsen has been around 100 years and still isn't super amazing.

 

Yep, the oil towns have cycled up from big boom, all the way down to completely drying up many many times the last 60 years. It's inevitable. Not a matter of if, it's a matter of when.

But the bigger concern you guys should have is why would crude go down to $70-$60 bbl??? If we reach that point, enhanced oil production means will only be less then half of the reason. A severely depressed US and global economy (lowered consumption rates) will be the bigger reasoning, and that will mean massive lay-offs in all employment sectors, even state/local governments. All the cheap gas/fuel in the world don't mean crap if you don't have job income to purchase it with.

 

The article quoting $30 break even is NOT accounting for the land cost, they are breaking that cost out separately... I have read other articles that do the same thing, but land cost is a huge part of the cost to get the oil.

 

Just a thought that hit my mind yesterday, after thinking about it for a while I thought I would talk out loud.

I wonder if those in control have driven down the gas prices to try & make Russia go broke, if I recall most of their money comes from the sale of gas & such.

 

Really? Guess maybe my boss hasn't heard that........I'm told that we are drilling 15 wells a month / every month in 2015. Hope your wrong and he's right.

Time will tell.

 

Much gossip being spread around, the truth is this country lives on GOSSIP, & loves GOSSIP.

 

Anybody think that lower oil pricing might just be another ploy to make the democrat popular this Nov? than after the elections it goes right back up? I also work in the patch and have a secured account through 2016.

 

all you people who are talking about secured accounts, yea we herd the same thing in the 80's....did not make a difference, it still crashed.

Go and read what the companies are saying on the quarterly reports, and their annual reports...

also look at the companies that are already being purchased by others... the weak ones are being gobbled up. Prices for the land have dropped by 50 to 75% since the beginning of this year.... The boom is over, now how long will the plateau stage last? Depends more on global politics than supply and demand.

 

KISS...?
Ever hear of this acro?

Just sayin....

I drive a truck.
I get called with loads all day every day I am at work in ND.
I get Paid well to do this.
s long as they call me, I will go and make money.
In the mean time, I will enjoy my time not stressing about what ifs and things out of my control.

Word of advice to all, keep your debt low, keep your credit in good shape and keep some cash in savings. if things go to poop, you are ready to go and not be behind the eight ball.

Treat it like it could end tomorrow and you will be fine.

There is no begining of the end. There is only the start of something new or the change to a current system.

Lots of companies, including the one I haul frac sand for and the one I used to haul oil for, have bought big chuncks of property and are expanding in the area with plans to add lots of trucks to keep up with the work load.

I been there alomst two years. I wouldnt sweat it till your dispatch calls and says sorry we aint got work for ya anymore.

 

Yeah, I'd much rather see that coming than be blindsided, it's always better to be as prepared as you can.