Thursday, February 25, 2016

The down cycle of drilling and dealing with the personal financial hit


Nationally the media is telling us how the downturn in oil & gas production has effective the markets globally resulting in layoffs of the workforce. In Midland TX the Sunday Morning show interviewed a gentleman who has worked in the industry for 20 yours.   He said ‘….I’m used to the cycle of drilling the ups and downs- but this time is longer than before’. He lives in a modest three bedroom house with his wife and two kids; his wife is a stay at home mom, a two car family with one being his two year old truck. Now this is more than a truck, it’s his office too. Like many of you, he traveled for hours a day in his truck with safety manuals, tools, colleagues, and food and drink. When asked ‘if the industry is so unpredictable why not change professions?’ Without hesitation he replied, ‘ I love what I do. Overall it’s been good to me and my family’.   How can you argue with that?  But this may answer a question I’ve had for years – Why does the industry al
http://www.shaledirectories.com/blog/the-down-cycle-of-drilling-and-dealing-with-the-personal-financial-hit/

Wednesday, February 24, 2016

Massive Write-Downs at Chesapeake


The $2.06 billion write-down of the value of its oil and gas assets due to low O&G prices was the major force behind Chesapeake Energy’s $2.23 billion fourth-quarter loss, the independent producer reported this morning. For all of 2015, the Oklahoma City, Oklahoma-based company reported a net loss of $14.86 billion, with again the write-down of the value of its oil and gas assets due to prices contributing the bulk of the red ink, $14.53 billion for the year. Chesapeake s profit in 2014 s fourth quarter was $586 million, while the full-year profit was $1.27 billion. In light of the challenging commodity price environment, our focus for 2016 is to improve our liquidity, further reduce our cost structure and address our near-term debt maturities to strengthen our balance sheet,” Chesapeake CEO Doug Lawler said. Chesapeake s fourth-quarter daily production averaged roughly 661,100 barrels of oil-equivalent (BOE), a year-over-year increase of 1% adjusted for asset sales, Kallanish Ene
http://www.shaledirectories.com/blog/massive-write-downs-at-chesapeake/

Tuesday, February 23, 2016

What the EIA is saying today


What the EIA is saying today…..could be light at the end of the tunnel. Today Reuters stated “EIA sees oil market rebalancing in 2017; US production at record high by 2021.”  Oil markets to rebalance in 2017 thanks to falling US production but that decline will prove short-lived as efficiency gains will push US output to new records by the beginning of the next decade. Over the course of 2015 to 2021, US output is expected to reach a record high of 14.2 million barrels per day (bpd), after dipping initially this year and next, the IEA said in this report. Production of US shale oil, known as light, tight oil (LTO), is expected to drop by 600,000 bpd next year, and a further 200,000 bpd next year before gradually recovering. So how do we maintain our businesses and employees until then?    If you can, go back to your core business and build it up again. Be creative in your deals; make a marketing plan and review it periodically, set measureable goals and hold everyone account
http://www.shaledirectories.com/blog/what-the-eia-is-saying-today/

Tuesday, February 16, 2016

Freeze on World Oil Output


World’s top oil producers Saudi Arabia and Russia agreed to freeze crude output at January levels after a meeting on Tuesday in Qatar, alongside OPEC producers Venezuela and Qatar, Kallanish Energy learns. Saudi Arabia’s oil minister Ali Al-Naimi said the production cut agreement would be “adequate,” while Russia’s oil minister Alexandre Novak highlighted the deal is conditional to other nation’s participation such as Iran and Iraq. We don t want significant gyrations in prices, we don t want reduction in supply, we want to meet demand, and we want a stable oil price. We have to take a step at a time, Al-Naimi told reporters. Qatar energy minister and OPEC president Mohammad bin Saleh al-Sada said in a press briefing that low oil prices haven’t been positive for the world, and his country will lead the monitoring of the production freeze agreement. Eugen Weinberg, head of commodities research at Commerzbank AG in Frankfurt, told Bloomberg “this is an announcement of a
http://www.shaledirectories.com/blog/freeze-on-world-oil-output/

Wednesday, February 10, 2016

The Shale Bust Is More of a Loud Whimper


Crude oil and natural gas production in the Lower 48 States’ seven most prolific drilling areas will fall only slightly from February-to-March, the U.S. Energy Information Administration projects. The EIA’s February Drilling Productivity Report expects oil production to drop just 92,000 barrels per day (BPD), to more than 4.9 million barrels per day (MMBPD) in March, from 5.02 MMBPD in February. On the gas side, production from February to March slips 451 million cubic feet per day (MMcf/d), to 44.71 billion cubic feet per day (Bcf/d), from 44.26 Bcf/d in February, Kallanish Energy reports. The drilling report concentrates on the Bakken, Eagle Ford, Haynesville, Marcellus, Niobrara, Permian and Utica drilling areas which, combined, represent 92% of domestic oil production growth and all domestic natural gas production growth during 2011-14. Five of the seven drilling regions ae expected to report a drop in crude production, with the biggest drop, more than 50% of the total decreas
http://www.shaledirectories.com/blog/the-shale-bust-is-more-of-a-loud-whimper/