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    Perform a search online for Houston's Tent City in the 1980s. The pictures should speak for themselves?

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      I'm new to the industry on the service side (bit and vibrator sales ). I'm here, in part, because the boom-to-bust scenario isn't exclusive to O&G. I endured both ups and downs in the trucking business, too. No matter the industry or job the OPs advice is solid. Jim Rohn used to say "If you inherit a million dollars, you best figure out how to become a millionaire so you can keep it." The same applies to somebody who suddenly comes into money, as many have in O&G. The evidence points to a boom-to-bust scenario - not just most of the time, but EVERY time so far. To think it won't happen again is naïve, at best.

      In addition to putting some $ away for when it happens, it's also a good idea to start working on a fallback plan. Fortunately, I still have the ability to continue developing other professional opportunities, such as TBH and TBH Creative Media. Learn and teach yourself new skills to diversify yourself personally, as well. Jim Rohn also said "Pity the man who inherits a million dollars and who isn't a millionaire. Here's what would be pitiful: If your income grew and you didn't."

      Man, you financial planners have a golden opportunity (if not a tough sell) to help some of the folks in this industry!
      My Flickr Photos

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        Originally posted by JMalin View Post
        Just give me two good years to get ahead and figure out what I really want to do with my life lol. I don't foresee cheap oil any time soon with America's addiction to spending/debt along with reckless monetary policy, but who knows? Maybe all the production going on will finally catch up and a glut of supply will bring prices down.

        So, if I do want to make a career in the oil patch, what are some jobs that'll be around regardless if prices fall?
        Er doctor lol

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          Trust me Micheal they're already hustling

          I've just started with the bunch getting some Roth IRA's and making my 401's work more efficient, got alot too learn

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            Yep. There's so many half a million dollar homes going up in Katy it's ridiculous. We got caught up in it and it took me a year to come to my senses. Now we're back in a modest house that we can pay off in less than 5 years with a much lower tax rate.

            If you're in Katy and are interested, I'm facilitating a Dave Ramsey course for my church (The Commons) that starts next Tuesday. It will be every Tuesday for 9 weeks, meeting at 6:30pm.

            [ame="http://www.youtube.com/watch?v=N4QOgFLdkCo#t=10"]Dave Ramsey's Financial Peace University - Class Preview - YouTube[/ame]

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              Originally posted by Burnadell View Post
              The naïveté of your remarks is both chilling and revealing. You obviously were not in the business when it was booming in the late 70's and went FLAT bust in 1982! It was devistating to those who thought the money would never stop rolling in (like you). As a banker who worked for awhile in the loan workout area of the largest bank in Texas at the time with a huge portfolio of drilling rig and other oilfield equipment loans. Companies went from people waiting in line at the Offshore Technology Conference to just order their equipment...to not being able to give it away! I could tell you some sad horror stories about visiting our borrowers
              offices/plants/warehouses in Midland/Odessa/Houston and seeing ghost buildings! NOTHING was happening. This went from boom to bust in just weeks!


              The OP has some excellent advice, and you young folks would be wise to take heed. I cringe every time I see someone selling some souped up AR 15, Leica binoculars or some other expensive toy because of some small financial hiccup. If you don't have money in the bank (or in investments with your Financial Advisor ), you probably can't afford those high priced luxury items if you have to sell them to raise money for your kid 's braces! Just because you have the cash to pay for them (let alone having to finance them) does not mean you can afford them. That cash might should be put back for making the mortgage or truck payment when that job goes away.

              They call me Grumpy .. but I have witnessed it!

              Randy I worked the East Texas oilfields around Tyler , Lufkin , Kilgore , Gilmer etc. You are absolutely right but the oilfield did linger on a bit longer for us in that region.

              I remember getting paid to just sit and circulate in the hole because there was no drill pipe to be bought. It wasn't long before we were stacking the rig out in the snow.

              I saw what was coming and took a job working for Abercrombie and Fitch sporting goods. We were still selling high end toys like Krieghoff Crown grade shotguns Purdy, Renato Gamba's, Colt Sauer, H&H etc. etc.

              The next year we were buying back all those toys for 10 cents on the dollar. I still have a few of those items tucked away as well.

              I went into the Army and some years later watched the very same boom or bust happen down in Pearsall and Dilley.

              Those that believe it can't happen or wont happen need to understand the economics of the oil industry. All those perks and high wages come at a price and if that price drops below x-$$$$ those wells will be shut down and until they run prices and demand up to meet the end costs of production.

              Comment


                Originally posted by Burnadell View Post
                The naïveté of your remarks is both chilling and revealing. You obviously were not in the business when it was booming in the late 70's and went FLAT bust in 1982! It was devistating to those who thought the money would never stop rolling in (like you). As a banker who worked for awhile in the loan workout area of the largest bank in Texas at the time with a huge portfolio of drilling rig and other oilfield equipment loans. Companies went from people waiting in line at the Offshore Technology Conference to just order their equipment...to not being able to give it away! I could tell you some sad horror stories about visiting our borrowers
                offices/plants/warehouses in Midland/Odessa/Houston and seeing ghost buildings! NOTHING was happening. This went from boom to bust in just weeks!

                The OP has some excellent advice, and you young folks would be wise to take heed. I cringe every time I see someone selling some souped up AR 15, Leica binoculars or some other expensive toy because of some small financial hiccup. If you don't have money in the bank (or in investments with your Financial Advisor ), you probably can't afford those high priced luxury items if you have to sell them to raise money for your kid 's braces! Just because you have the cash to pay for them (let alone having to finance them) does not mean you can afford them. That cash might should be put back for making the mortgage or truck payment when that job goes away.

                They call me Grumpy .. but I have witnessed it!
                Listen to the wise Owl........ (and the other "old" guys that have experienced the cycle)

                I have tried to tell my friends and family that are younger than me to put some money away. One in the oil field, I got him to at least set up his Roth. Now is he continuing to fund it? Who knows.

                I got another buddy who is making good money and got him motivated to fund his IRA and to put money away. Couple weeks ago when at the lease I talked with his fiancé about putting in the match for her 401k and starting to contribute to a Roth......

                When you are young "Time" is your friend, if you start now. Later on "Time" will be your enemy.

                Don't be a "Coulda, Woulda, Shoulda" in 5-10 years



                Maybe I should start putting money aside in a separate fund to buy all of the toys from former Oilfield workers

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                  Originally posted by Michael View Post
                  Man, you financial planners have a golden opportunity (if not a tough sell) to help some of the folks in this industry!

                  ...if they will listen, but sadly, most will blow a lot of their good fortune to have what used to be known as luxuries, only to realize at age 56 that there is no way for them to retire with no retirement savings!

                  What were one luxury items for you people seem to be necessities nowadays.

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                    I have been telling my wife when the bust hits I am going to fill my shop from floor to ceiling with Lincoln Welding Machines that I can buy for $700-800 from all the welders in the area that will go belly up.

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                      Just let people enjoy the fruits of their labor, until the bust happens. Then the rest of us can enjoy the fruits of their labor.

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                        If they stop drilling production/supply will come to a screeching hault...the front end "flush" production from these horizontal wells is what's pumping up the production numbers. Thus, any significant drop in oil prices will be transitory, IMO.

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                          It can happen in a hurry. In July 2008 oil was at $145/bbl. By December 2008 it was under $34/bbl. A lot of good advice on here to save up for the downturn.

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                            Originally posted by RLB View Post
                            Rig Contracts dont go out the window!! Those are iron clad guaranteed deals.....at $24-$28K per day for 24-48 months
                            LMAO!!! I want some of the stuff you be smoking...

                            Comment


                              Originally posted by Burnadell View Post
                              The founder of our company, Edward Jones, used to say, "make hay while the sun is shining...but ALWAYS put some in the barn for rainy days."
                              Wise man

                              I retired when I was 50 but when I had my business I always put at least 10% away and never spent more than 10% on recreation or toys

                              Comment


                                Originally posted by Burnadell View Post
                                ...if they will listen, but sadly, most will blow a lot of their good fortune to have what used to be known as luxuries, only to realize at age 56 that there is no way for them to retire with no retirement savings!

                                What were one luxury items for you people seem to be necessities nowadays.
                                Oops! Typo. I did not mean to say, "you people". Meant to say, "what were were once luxury items for young people seem to be necessities nowadays".
                                Last edited by Burnadell; 09-19-2014, 06:00 PM.

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