Jobs in ND Oil Patch

What costs are out of line and what would you consider in line?

 

Here's a couple examples:

Two years ago gravel cost 6 dollars a yard delivered right now it is up to 42 dollars a yard delivered that's huge.

Water hauling rates have went from 80 to 100 an hour to 130 to 150 an hour with no difference in the job done except that they can get someone to pay that rate.

Don't believe me if you want but I have been through a couple busts and the hard times that follow. This is the same thing that happened to us in 2008.

Now I'm not too worried as I'm in the production side now not the drilling side. They estimate that if they put all the rigs in the weeds right now we would have 5 to 7 years of frac work left to do just no location building and exploration work.

 

Is it just the sub contractors that are slow? Are company drivers for MBI and PowerFuels still working at least 70 hours per week?

 

Honestly I don't kno but I see a bunch of MBI trucks sitting around.


---
- Sent from my iPhone using Tapatalk

 

So how much has Crude Oil went up during this same time frame and are there more wells producing Oil?

 

Problem is your looking at two different things. Sure the price of crude has went up but just like any corporation the oil companies want to make the most profit on the least amount of investment. I don't care if crude is trading at 1000 dollars a barrel if the company's think the cost is too high they are going to quit drilling and produce what they already have drilled. Same as running a truck as an OO because your rate goes up do you quit worrying about your cost it doesnt make sense in any scenario.


---
- Sent from my iPhone using Tapatalk

 

The price of oil is also going up because of the idiot in Iran.

 

I don't agree. The price is going up because US consumers don't care about spending $3.50-$4 for gas.

 

From what I've read we are using less gas than we were in 1999 and refineries are only at 80% capacity right now. Iran produces 3 mill bbls a day and the Saudis have said they would gladly replace it so the price wouldn't spike. Everyone thinks the oil producers want these high price but I don't think that's true. At a certain point the price of fuel kills the economy and then demand bottoms out. I think one reason NDhas slowed is because they can't get their oil to the gulf and to the futures market. Most of their oil is being sold for $65bbl instead of $110. Why do you think gas is cheaper there than in west Texas when WT produces way more oil and has atleast one refinery in Big Springs.

 

no, it is OPEC