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

http://oilpro.com/post/9468/drilling-contracts-terminated-60-rigs-going-idle-leading-shale-dr. Ouch!!!

 

This was the next article on that website and it makes a lot of sense when you see the year on year numbers.

http://oilpro.com/post/8832/drilling-permits-and-shale-drilling-activity

 

No, it's very noticeable down here in Texas. People are laying off left and right. My company just laid off their entire dirt crew (about 80 guys) this morning because there is no work. On the trucking side, Apache has been our God-send because they are still drilling like crazy, but they are not building any new locations...just finishing the ones already built. I do agree with you that it will be more noticeable later in the year. First the rig crews, then the frac crews, and then the drill out crews. The relatively small fire of layoffs is going to turn into an inferno in about 6 months time if oil prices remain where they are.

A good read.

http://sanangelolive.com/news/business/2014-12-29/oil-price-uncertainty-looms-over-west-texas-2015

 

Not seeing that kind of layoff at all here in ND, and I saw a new pad being graded in today. I'm curious why TX seems to be getting hit so much harder.

 

Look up US steel. Texas and Ohio locations.

 

Actually down 30 since Sept.

http://www.inforum.com/news/3651040-oil-regulator-says-lower-oil-prices-spell-gloom-not-doom-nd

 

Of course new pads are being built. There are still 160+ rigs in the state. Mountrail, Williams, and McKenzie will continue to see rigs. The outer areas will dry up first, more rigs will stack, then once fracs catch up the crews will start to do layoffs. This could last 1-2 years I've read but does not mean this is over. Still going to be a lot of production jobs in ND for a long, long time.

 

http://www.reuters.com/article/2015/01/09/bakken-oil-breakeven-kemp-idUSL6N0UO1Z520150109

 

I noticed some places are outlawing fracking, because of earth quakes, contamination of water, water wells at houses putting out water which will burn if a match is held to it, or a cigarette or lit march is thrown in the commode.

Does fracking cause earthquakes?

"Youngstown is located over the Marcellus Shale, a geological formation that scientists estimate contains 489 trillion cubic feet of natural gas. Before January 2011, it had never felt an earthquake, at least not since record-keeping began in 1776. But two weeks after the Northstar 1 well started pumping fluid into the ground, the tremors began. Though most were too small to feel, by December 2011 seismometers in the town had recorded a magnitude 3.9 quake."

To Read The Whole Article.

I figure many more places will out law this manner of getting oil and natural gas especially if earthquakes keeps happening in areas where ####### is done and water keeps getting contaminated.

 

Water contamination is bad.
Causing earthquakes I don't believe.
Triggering the release of tectonic or strata tension relief maybe.
If this is the case then I would think fracking would be mandated along all major fault lines in order to release the built up tension.
If the tension along a fault line could be released every couple of years it would be no big deal.
It would eliminate the once in a long while big one that destroys and kills.