Posted on 04/22/2015 10:30:44 AM PDT by ckilmer
ping
Only Malthusians assume technology is a constant. Profit motive is very strong; thus, clever ways to lower costs will always be sought.
I LOVE THIS COUNTRY!! Innovation never stops. No one can touch us except a destructive president and congress, an the 45 percent moochers.
I HAD an original idea once. I was the FIRST soda machine vendor In the country to put Snapple CANS in vending machines. They had bottle machines then but no cans. I called Snapple and asked to buy a can machine, they nastily said “we don’t have them and never will!!” There are zillions of them now. Got sick of frequent mafia run ins an sold the route.
My understanding is at Eagle Ford they are drilling wells but not fracing them. 1800 wells
Great Earth Day News!.........................Frack, Baby, Frack!..................and keep on Fracking!......................
Reductions of cost claims can be dependent on how they are measured.
If it is the average cost per barrel produced, cost go down during slowdowns because only the best equipment gets used for the best portions for the fields.
During high prices, it becomes economic to produce from poorer areas of the field and use less efficient crews and equipment, driving the total average cost up.
CERAWeek: Oil tool makers say upstream discounts unlikely to climb high
http://fuelfix.com/blog/2015/04/21/ceraweek-oil-tool-makers-say-upstream-discounts-unlikely-to-climb-high/
In the last six months, oil-company breakeven levels have only declined 5 percent to 6 percent, and arent expected to fall nearly as far as producers hope, said Pritesh Patel, director of research at IHS, in a panel during the second day of the weeklong IHS CERAWeek energy conference at the Hilton Americas-Houston.
There are huge expectation that costs will come down 20 to 40 percent, but in reality our expectations lower than this, Patel said.
Its hard to find room for 20-percent discounts on equipment when labor and specialty steel costs dont change rapidly, said Douglas Meikle, president of valves and measurements at Cameron International, a Houston oil equipment manufacturer.
Were a publicly traded company, he said. Its hard for us to find that kind of number.
Mario Azar, CEO of Siemens oil and gas arm, said it isnt possible to add 25-percent price reduction from his own manufacturing firms suppliers.
Bakken and other locations as well. Estimated 4,000 wells drilled and not completed at this time.
Two interesting notes though: i) only a limited subset of operators can even afford to talk about drilled but uncompleted wells and ii) the industry's DUC backlog to this point is only about 7% of the total wells drilled last year.
http://oilpro.com/post/12339/halliburton-president-sees-future-playing-out
10 Years ago could we have imagined this Energy Renaissance?
New ways of getting this energy will be invited that haven't even been imagine.
This "Peak Oil" stuff is a bunch of crap. That is pushed by the "We Can't/It can't be done crowd"
If we would have listened to them we never would have went to the moon!
Super Ping!
Still no earthquakes in NW and SE New Mexico. Been oil and gas drilling there for the past 70 years.
A plumber I know that made some good money in North Dakota came back because building is slowing down and competition is driving profitability down. Why live and work in a barren and sometimes frozen windswept plain if you aren’t making more than what you would have near home?
Yeah there were a couple years where median salaries in the oil patch were outpacing wall street median salaries. looks like they’re coming back to earth.
lower oil prices however are great for the rest of the USA & the world—as they act like a tax cut on the top line and improve profitability of many industries on the bottom line.
What matters most is from a security standpoint is energy independence, so we don’t have to play kiss-ass with Arab Sheiks, just to keep the oil flowing.
This is the beauty of having non-union employees. They have the choice of working at reduced pay after the boom-time salaries they’ve made, or not to have a job at all. Most prefer some to none.
The Hillbilly mafia runs vending machines in the Chicago area.
Let’s not count coal out, either.
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