|
Well.... I didn't know that about Fracking! - Oct 11th, 19
I ran across an article by John over at Oilprice.com and I just had to click on it. Being mom to a very curious little boy and working in the OIl & Gas Industry... I love to learn more about my job and share it with my son. One of our favorite excursions is to a local museum which has a fantastic Oil & Gas Exhibit. The Fracking ride is one of our favorite parts of the trip.
Of course, the dinosaurs are a huge hit too. I may not be able to pronounce a dinosaur name worth a damned, but it makes my son laugh when I try.
The Oil and Gas Exhibits are both fun and educational, so a big hit with us. What little boy doesn't stare in awe at the giant drill pieces, wonder what plant or critter makes up that blob at the bottom of the formation diagrams.... and scream with delight when they get shrunk to fit down a drill shaft, and discover how fracking works. Who doesn't want to rattle and bang and shake and roll as they descend vertically and horizontally, drop well casings, squirt water and fracture then shoot back to the surface before the cement dries?
....except maybe the heavily pregnant lady I once had to advise NOT to go on the ride, unless she was planning to induce labor haha Ok so I am a big kid too... I admit it.
READ MORE by clicking on the link above this post excerpt "Well.... I didn't know that about Fracking!"
|
|
Oil Production Drop "Just A Glitch" - Oct 11th, 19
So many things have an impact on the Oil & Gas Industry nowadays, trade talks, hurricanes and now missiles. Some of these are man made issues, but you can't argue with Mother Nature. According to the EIA, Hurricane Barry was to blame for a temporary 276,000 bpd crude oil production drop which was mostly in the Gulf of Mexico area.
Luckily Hurricane Barry is long gone and the season is almost over, the EIA is expecting production increases through the end of this year and leveling off into 2020.
READ MORE by clicking on the link at the top of this post "Oil Production Drop "Just A Glitch" for an article by Oilprice.com's Tsvetana Paraskova.
|
|
EPD Midland to ECHO proposed Pipeline Expansion - Oct 9th, 19
Expected to be in service by mid 2021; EPD's pipeline expansion proposed route is getting ready for expected increases in Oil & Gas production in the area. It's always exciting to see progress and new technologies in the Industry.
"crude and NGL output from the Permian and Eagle Ford are projected to grow by 5 million bpd by 2025."
"expected 50-percent increase in natural gas liquids (NGL) production from the Permian by 2025,"
And anyone concerned with environmental impact..has got to love this statement.
“The route would avoid the Edwards Aquifer, including its recharge and contribution zones,”
Read more of this great article by Matthew Veazey by clicking on the title link above "EPD Midland to ECHO proposed Pipeline Expansion"
|
|
Did We Get it Right this Time? - Mar 4th, 15
From a Publication: GEOLOGIC News A Message from the President: Hal Miller 1st Edition
Anyone who works in or follows the oil and gas industry knows that our business is cyclical and high price environments do not last indefinitely. Despite the surprisingly precipitous price drop over the past several months, those of us who have been around for a few decades recognize the symptoms that accompany a price slump: restricted budgets, falling rig counts and staff reductions for example. This will come as a rude shock to those who have only recently joined the industry, but it is in fact commonplace in our business. Remember the bumper sticker asking for one more boom and promising we will get it right this time? I think we can argue that the industry did not squander the past five years of strong prices. The vast improvements in expensive drilling and completion technologies that have opened the unconventional reservoir opportunities and deepwater environments around the world would not have happened, or at least not progressed as quickly, if 2009 prices had prevailed over the intervening years. Now the resulting dramatic increases in supply, even in the face of many potentially destabilizing geopolitical risks, are impacting the price to the detriment of the industry but to the benefit of the world�s many struggling economies. As we have seen before, the dropping price environment began while the lagging cost cycle for oilfield services was still on the upswing. High demand for rigs and services results in equipment and manpower shortages, rising costs, and inevitably project delays and cost overruns. There is no countering the law of supply and demand, and there are voices in the industry suggesting that this correction is not just inevitable but necessary to bring costs back into line. From the people perspective, the industry has been a significantly positive factor in offsetting unemployment in the US and around the world. Interestingly, the expansion of the industry was not the only driver this time, with the looming demographic factor known as the "Great Crew Change" forcing the industry to bring in new talent before the vast reservoir of knowledge residing in the "Baby Boomer" generation retires. Fifteen years ago it was primarily the majors, large independents and large service providers doing most of the hiring on campus. Today the hiring, driven by the Crew Change, spans companies of all sizes. Hopefully the industry will maintain steady hiring practices and continue to support the departments that are turning out high quality recruits. The consulting business is often the "canary in the coal mine" during industry contractions. Companies release contractors as one of the first steps towards cost reductions. Staff reductions have now followed, adding to the "natural" attrition that occurred during 2014 through retirement of the baby boomers. Some companies are offering enhanced retirement packages to reduce staff from the top of the experience (and cost) ladder. Any acceleration of this drain on experience will be especially painful as the industry desperately needs mentors for the expanded ranks of millennials. Consulting has in times past experienced a rebound effect when companies reduced staff but needed to backfill the ranks to get the work done without hiring new employees. Highly experienced and recently retired consultants are a great interim solution to making sure projects stay on track, not to mention continued mentoring of new professionals who will be desperately needed when the price inevitably cycles back up again.
Hal Miller
|
|
Oil is the New Gold - Aug 25th, 11
Since OPEC has set $85/bbl on oil as the new benchmark they use to price their oil, investors should pay attention to owning oil as a commodity in the ground and ride the ever-spiking upward trend of pricing over the next 10 years. The new post-meltdown of the global economy has given rise to crude oil as "the new gold". Since 1859 oil has enabled and defined our economic, social and political landscape. Throughout this time, abundant supply ensured low, stable prices and the inner working of the oil industry remained relatively obscure. Following a century and a half of relative calm, oil prices have become much more volatile as the sustainability and growth of reliable supply sources have been brought into question. Prices are no longer determined by supply and demand, but rather by daily global wholesale oil markets. Oil prices cannot stabilize without the dramatic action on the part of both government and business. Changes have taken place in the oil markets during the past twenty years, and particularly the last five, as investment banks, energy hedge funds, and managed futures funds have come to dominate energy trading and wreak havoc on global oil prices. The world has moved towards an oil environment defined by volatility. Traditional pricing mechanisms will no longer govern the oil market. The new international oil environment of increasing consolidation and decreasing competition allows investors to navigate price volatility and accept the market price of crude is only headed in one direction---upwards.
Larry Milnes, Eno Petroleum Corporation
|