I bet the PV&F industry is taking a massive hit.
It looks about like that here in Tulsa, too. Tulsa may not be the Oil Capital anymore but there's still a strong manufacturing base for the oilfield here and they're taking a beating right now. The biggest worry around here right now is what happens to the 4 Baker-Hughes facilities around here when the Halliburton acquisition closes.
Looks like we better jack gas prices back up to $4.50/gal. To save the economy! /s
The big oil boom of recent years has finally produced a big drop in prices, which looks more like a long term readjustment than a quick market swing.
Although the oil boom may have run its course for now, they can continue to profitably produce at these higher levels.
Natural gas in the US has already run its boom, until plentiful supply lowered prices, and started slowing its growth rate.
In both cases, improved technologies have permanently improved productivity, lowering the break-even price points. In both cases, the US has huge supplies which could be produced.
Natural gas is gearing up for another (although less explosive) growth spurt next year, as huge export facilities start coming on line. It takes a few years to get these built, but 2016-18 will see a sharp rise in export capability, as these projects are already, approved, funded and well underway.
US natural gas prices are well below world prices - less than half what many countries pay. We can keep pumping more gas into the world market, until prices worldwide adjust down to our levels (domestic prices will rise a bit as well for a while).
Although the boomtown rush of huge wages and huge premium prices for oilfield service suppliers may come back down to more competitive rates, production will continue at higher rates in the long term, pumping money into our economy and taxes into the public treasury.
It is a long term major good news story for the USA and the world.
Oil has always been cyclical. Sane federal policy would help but it’s essentially the free market at work.
BHI: US rig count drops 22 units in 20th straight week of losses
http://www.ogj.com/articles/2015/04/bhi-us-rig-count-drops-22-units-in-20th-straight-week-of-losses.html
The US drilling rig count fell 22 units to 932 rigs working during the week ended Apr. 24, marking the 20th consecutive week of declines, according to data from Baker Hughes Inc.
The count has now plunged 988 units since the week ended Dec. 5 (OGJ Online, Dec. 5, 2014). The total of 932 is the lowest since July 17, 2009, and 929 fewer units compared with this week a year ago....
Texas again led the losses among major oil- and gas-producing states with a 19-unit decline to 393, down 513 since Nov. 21 and 501 year-over-year. The state’s losses reflected a 12-unit drop in the Permian to 246, down 322 since Dec. 5, and an 8-unit drop in the Eagle Ford to 115, down 103 since Oct. 31.
North Dakota lost 5 units for the second straight week to 78, reflecting a 5-unit drop, also for the second straight week, in the Williston to 79....
I’ve noticed the Texas downturn in rental car prices. A year ago, Dallas and Houston had among the highest prices in the country. Now you can rent a car for about a third as much.
Crashing? You coulda fooled me.
I just left Houston and sold my house for above asking price in 24 hours.