Hey Oilfield Guys!!

[bphillips]

I believe this is common this time of year...........

Someone correct me if I'm wrong...

End of year cuts are normal but Im not sure 50% is normal.

[asttbe]

More goodness from the office.

"As many of you are aware, we are carefully monitoring markets as our industry is showing indications of an O&G slowdown or downturn. Those of you that have worked in this business for any number of years would be familiar that this cycle tends to repeat itself every so many few years. As a result of oil prices being down to the mid to low $70’s, some oil companies are reducing capital expenditures across the globe causing postponement of projects."

[Dale]

Never Mind.

[Charles]

Anybody else keeping an eye on O&G stock prices and ready to buy?

I'm thinking now would be a good time to buy and hold.

[KR-oldmexico]

Just got off the phone with 2 different M&A and Equity companies concerning a few projects we have going. I asked what Wall Street and the big banks thought about the Energy/Oil and Gas sector... The 2 largest sectors that they are/will be investing in are the Energy Sector and the medical fields......

Long term forecast look good for them!!

[txwhitetail]

We have been working on contingency type plans for different oil prices since early summer. Companies that haven't been are WAY behind. This hasn't been happening overnight.

[hammer63]

Anybody else keeping an eye on O&G stock prices and ready to buy?

I'm thinking now would be a good time to buy and hold.

Uh, that would be a 10-4. Buying solid stocks with solid dividend at a good price is what it's all about. And being in a position to buy opportunistically doesn't hurt either

[Hardware]

All I know is that the oil business has been great since the early 90's with a few slow downs but none as bad as the mid 80's. For all the people thinking a slow down like we had then would be good need to do a little reading about all the economic woes people had during the 80's. Oil is the biggest driver of our economy and will cause a slow down of all other businesses. I for one can remember the impact it had in the 80's and it's not one I want to repeat.

[Take Dead Aim]

All I know is that the oil business has been great since the early 90's with a few slow downs but none as bad as the mid 80's. For all the people thinking a slow down like we had then would be good need to do a little reading about all the economic woes people had during the 80's. Oil is the biggest driver of our economy and will cause a slow down of all other businesses. I for one can remember the impact it had in the 80's and it's not one I want to repeat.

Its only a negative driver when it is high. Its is a positive driver when it is low. Most of you guys are spouting off statements that have zero facts PR past history backing them up. I have yet to see a single person post a factual and no something they heard or created showing any evidence of oil dropping and the market following. It's doesn't happen. Oil will drop after the market does but not the other way around. History doesn't lie.

[kyle1974]

Hey Oilfield Guys!!

Its only a negative driver when it is high. Its is a positive driver when it is low. Most of you guys are spouting off statements that have zero facts PR past history backing them up. I have yet to see a single person post a factual and no something they heard or created showing any evidence of oil dropping and the market following. It's doesn't happen. Oil will drop after the market does but not the other way around. History doesn't lie.

You seem to have a hard time understanding the difference between "the market" and "the Texas economy".

Since everyone else is saying... What profession are you in? Since you've identified that the potential loss of half the drilling rigs isn't a crash, just supply and demand... I'm curious what other factuals you know.

[kgrutzmacher]

If anyone really wants to understand history, politics and the impact of hydrocarbons on the world economy, go read The Color of Oil. One of the 1st sentences reads - The color of oil is GREEN, and even if money throughout the world has all the colors of the rainbow, it is the greenback, both literally and figuratively, that has defined the value of oil....

[Take Dead Aim]

You seem to have a hard time understanding the difference between "the market" and "the Texas economy".

Since everyone else is saying... What profession are you in? Since you've identified that the potential loss of half the drilling rigs isn't a crash, just supply and demand... I'm curious what other factuals you know.

You seem to have a hard time understanding the difference between "Texas Economy" and "Oil". Oil plays a part in the Texas economy, no doubt but it is not everything. This state builds or grow planes, cars, computers, cattle, crops, etc and all of those rely on the price of oil to set cost. Yes oil plays a part in Texas economy but not as big a part as everyone is making it out to be. Yes the drop in oil prices might crash the Oil Market but it will not crash the Texas Market. One of the great things about this state is that it is so diversified in its economy. The Texas economy today relies largely on information technology, oil and natural gas, aerospace, defense, biomedical research, fuel processing, electric power, agriculture, and manufacturing.

Yes people will be given pink slips. I am in construction and know the industry is looking for good people daily. Many of the guys that left me went to the oil field and I will be happy to take most of them back.

Lets look at the other side of the low oil prices.
Energy cost go down. Texas is the #1 user of energy in the Nation.
Transportation cost go down. Everything from food to fuel are cheaper.
Construction cost go down. Cheaper to build homes, road, etc.
Food cost go down. Cheaper food all around.
Farming and Ranch cost go down. Cheaper feed prices, deer corn, etc.

All of the above save everyone in the state money daily, weekly, and yearly. You are wanting to say that because of a small % hurt by the low oil prices things will go to H3LL in a hand basket. But what you are not accounting for is everyone in the state and country for that matter will gain something at the expense of that small %. I know that sounds bad but it is the truth and the great thing about capitalism.

[BrianL]

Hope OP doesn't mind, but figured this is a good place to ask. If export of domestic oil is allowed again, how will this effect foreign oil speculators drilling over here? IE China becoming a huge player in Texas oil fields to ship back to China.

[kch73]

WTI closed at 67 and change today...

I'm afraid 2015 will be a bad year for domestic energy...I hope I'm wrong but we are due for a financial crisis of some type...they occur about every 7 years or so it seems.

[bdog14]

Hope OP doesn't mind, but figured this is a good place to ask. If export of domestic oil is allowed again, how will this effect foreign oil speculators drilling over here? IE China becoming a huge player in Texas oil fields to ship back to China.

It's already happening. I had 3 chinese guys come in to my office last week looking for $200mm+ operating companies to buy or JV with. They seem difficult to deal with however