Hey Oilfield Guys!!

[Grumpy1911]

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[RiverRat1]

I hate to have to say it but I agree with you on this and I actually think it will force them to trim the fat. As long as that's all they have to do many will keep working and at the worst take a little pay cut.

But this thread isn't about oil going from 120 to 75 so oil companies stay in business and trim fat. It's about oil going from 120 to 30 and the boom going bye-bye.

[Take Dead Aim]

LOL.... keep um coming...

I did a bad job of conveying my point above. Oil prices almost always decline during a recession because of decreased economy activity. Oil price declines that happen outside a recession, have never triggered a recession.

On the other hand, sharp increases in oil prices are very much associated with causing recessions.

[miket]

http://www.telegraph.co.uk/finance/oilprices/11263851/Saudis-risk-playing-with-fire-in-shale-price-showdown-as-crude-crashes.html

This article pretty much sums up what I think is going to happen ( as I stated in, I believe, the other oil thread ). I think this downturn will make us stronger and more efficient, which is better for our industry long term. The Saudis are underestimating us. Now all we have to do is keep our own govt from screwing something up....

[big w]

The problem with is our governments track record

[JW]

I've been wanting another diesel.

Yep. Good time to buy one already lifted then. I gotta 3 year tank project about to start and then waaaaay to dang much pipeline lined up.

[Shane]

But this thread isn't about oil going from 120 to 75 so oil companies stay in business and trim fat. It's about oil going from 120 to 30 and the boom going bye-bye.

Oil went from $135 in mid-2008 down to $30 in early 2009. It was back up to $75-80 by the end of 2009.

Then the boom started.

[asttbe]

Hey Oilfield Guys!!

Our company started cutting costs last month in expectations of the downturn

In fact this is copied right out of the email.

"and a forecasted down turn within our industry"

[ladrones]

http://fuelfix.com/blog/2014/12/01/texas-drilling-permits-fall-50-percent-in-november-data-shows/

[KR-oldmexico]

Falling prices are exactly what we need in order to fuel real economic growth.

Is there no other place where the billions and billions of dollars of capital tied up in producing oil could be put to better use?

You bet your *** I believe it. There are some major structural imbalances that the Fed's easy money policies along with Bush/Obama Keynesian stimulus have only masked.

It's not just what workers are being paid to sit around doing not much of anything. I've seen what we bill for the chemicals used on these jobs and know what they cost us. I don't know how we got any work charging what we did. It's like the whole frac service side is in cahoots. Wireline is a different story. It's cut throat out here.

WOW!!!! I had a lot more to say but chose the back button instead!!

Some liberal college professor has done work on you son!!!

[Green]

http://www.telegraph.co.uk/finance/o...e-crashes.html

This article pretty much sums up what I think is going to happen ( as I stated in, I believe, the other oil thread ). I think this downturn will make us stronger and more efficient, which is better for our industry long term. The Saudis are underestimating us. Now all we have to do is keep our own govt from screwing something up....

I agree with you here. I think the Saudi's are going to find out our resolve runs much deeper than they give us credit for (maybe because they are thinking Obama is representative of most American's). Crude is back up $3/bbl to 69.12 at the moment, so that's telling me in the absence of any further manipulations, the market is showing them that resolve right now.

[KR-oldmexico]

http://fuelfix.com/blog/2014/12/01/t...er-data-shows/

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

Someone correct me if I'm wrong...

[BrianL]

http://www.telegraph.co.uk/finance/o...e-crashes.html

This article pretty much sums up what I think is going to happen ( as I stated in, I believe, the other oil thread ). I think this downturn will make us stronger and more efficient, which is better for our industry long term. The Saudis are underestimating us. Now all we have to do is keep our own govt from screwing something up....

If the US producers can bring cost down to what that article states, we would own the world. Russia, Iran, and many other OPEC would be broke, were they need to be. Most all sectors of our economy would soar. It would be amazing. I hope you are both right.

[M16]

Let me try to explain this in layman's terms.

See we get all this money infused into Texas and other oil producing states. A lot of that money comes front them eco freaks in California and them yankees up east when they gas up the prius. The more money we can suck out of them suckers the better it is for our local economy. Kinda like a democrat with their redistribution of wealth. Mineral owners and oil companies spend money like drunken sailors on leave. We take their money and redistribute it to everybody down here. Like it or not oil makes Texas turn. If you don't benefit from higher oil prices blame yourself.

[Grumpy1911]

WOW!!!! I had a lot more to say but chose the back button instead!!

Some liberal college professor has done work on you son!!!

HAHAHAHA!!!! Greatness right there!!!!