I work for one of the largest independent E&P’s in the world. We haven’t heard anything as of now but we do have a planned town hall tomorrow. We took a paycut last week. As far as I know, we are hedged.
I work for one of the largest independent E&P’s in the world. We haven’t heard anything as of now but we do have a planned town hall tomorrow. We took a paycut last week. As far as I know, we are hedged.
BYOB
Bring Your Own Barrel....
I filled up my Mustang the other day and I have to put the 91 octane in. $12 later, I was full. I actually giggled when I saw the final price.Quote:
Originally Posted by Whiskey_Bravo
At the moment, I filled every gas powered device I own, went to the station and topped off every can I own (5 five gallon cans, 2 two gallon cans and a single gallon can for the chainsaw/weedeater) and dumped in some Pri-G. Each and every time I finish mowing, I'm going to top off the tank and refill the can.
Well, it's grim out here in North Dakota. May could see up to 75% of wells shutting in (as rumored). I haul oil out here and some of our competitors are shutting down. MBI is shutting everything down May 15. My company that is owned by a much larger company is mid-stream and down stream with our own pipeline and refinery. I was told not to worry and we will get through this.
May, no matter who you are, though, is going to suck. The happy medium for consumer and producer is about $60-80 a barrel. We're not drowning the consumer, but not taking a loss.
Quote:
Originally Posted by Mauser KAR98K
Yep. We’re shutting in wells in the Delaware, Bakken and Eagle Ford..
The “negative” price has already been more than adequately explained by a few already. I will add that the price spike upward will be just as sharp. Be ready for $200 oil in 2-3 years and enjoy this while it lasts. Oil supply is one of the capable of enduring huge, longer term disruptions like this. The economics of it force the big players to pump more oil when it is low to prop up their budgets. They have even less incentive to increase production when the price goes back up.
My biggest concern is the long-term impact on domestic exploration and recovery. Without a bailout, the domestic industry may never recover to pre-Covid levels. They are leveraged to badly to weather this for long.
Alaska has been taking a beating all year. Dwindling production and low prices. Corona hit and all exploration stopped, so that will set our output back by a bunch in the upcoming years. Today simply woke up those Alaskans that weren't paying attention.Quote:
Originally Posted by sundance435
Hopefully there might be a lesson learned from the chinese virus situation. When we open back up, get our oil industry back online before going back to foreign oil. The arabs are just as bad as the chinese.Quote:
Originally Posted by sundance435
oh yea.... MAGA.
Looking pretty grim here in Oklahoma as well. Production has completely stopped in my AO. Lots of producers are shutting in leases and waiting for prices to come back up. Cushing is almost full. Those of us that are hauling oil are not sure what each day will bring. Nobody in charge is talking.
That's the biggest reason prices are going negative. Even with a 10+ million cut from OPEC+, there's nowhere to store it. That cut only accounts for about 30-40% of the overall decrease in demand. Just another example of supply chains evolving (or devolving) to being based on a constant and not capable of rapidly ramping up or down.Quote:
Originally Posted by dante2
I haven't seen anything yet, but I hope there was something in Stimulus 3.5 to allow us to expand the strategic petroleum reserve - at least we'd save a few bucks doing it now and it would help slightly alleviate the storage problem. Yeah, I know, wishful thinking.