oilfield laying off

Seasonal demand for oil will pick up in the next 2 months and we have a strong floor and price bounce now. Is the damage fading in the rear view mirror?

 

NO! They laid down 33 rigs in the Eagle Ford last month.

 

I don't think we're out of the funk yet Trenton, but we are at a point where any cuts should begin fading. Hall is speculating we may see a fade down to $40 or lower over the next few months, but those prices aren't sustainable (thank God). I would say now is not the time to start making big ticket purchases.

 

I don't get why people keep saying the price of oil is going to go back up real soon, even lots of people I talk to in real life spouting it will be back to $100 by years end.

We used to drill in North Dakota in like the 80s? When oil got really expensive, and we started flooding the world market with our oil along with many other countries, Saudi Arabia did the same thing... they starting selling their crude for dirt cheap and it crushed a lot of our oil&gas activity... North Dakota didn't really start picking up until 2009. Are people really gonna wait around 20 years? Lol.

I mean really its all so very unpredictable. Nothing is for sure... this isn't fear mongering, just prepare for the worst, and if things go good again then hey, good for all of us. I personally think the outlook is bad.

 

yes you are exactly right. But we have a lot of cushion hear. Seeing it doesn't take but about 15 dollars a barrel to get it out of the ground. The cost of operating the well. Oil is going back up no worries

 

I have 3 jobs to choose between, did a sit down interview with Plains that looks really solid, a phone interview with a company in Watford that is solid and a job offer from back down in LA that pays less than ND but a good bit more than any crude jobs I've seen in LA and it will have me home. I'm positive that I have my choice between these 3 and even if I didn't none of them are jobs I would feel bad taking.

 

Not to sound pessimistic, but this drop goes far beyond seasonal demand which I don't think will move these prices at all when summer hits. If it does than great.

 

Summer always moves prices, always has always will. How much it moves it is the only question. I wouldn't be surprised to see $75 oil in the summer, I would be shocked to see $100 oil.

 

good for you, now which is more important to you, being home, or more money? And all this after your mistake in Louisiana...

Goes to show, that moving on after being let go, doing the job, earns rewards. For experienced drivers, willing to work, there are always jobs, even in the down markets. The continuing laying down of rigs, will slow the production of oil, and natural gas, and we will all see the mergers and contractions over the rest of this year.

In North Dakota, according to the North dakota oil commission, there are 775 wells drilled, waiting on enhancement, and completion... ie fracked. That is work waiting to be done.

 

Yes im aware of that. Historically for the past 4 years oil usually rises around 10 percent during the summer months and than falls back down. I wouldn't be surprised if it finds support at the low 40s like it did in 07 or whenever before it goes back up though. It has come close but hasn't hit it yet. Its a matter of when