tag:blogger.com,1999:blog-6199410.post1371069829410150974..comments2023-12-27T08:02:59.927-05:00Comments on Energy Outlook: US Energy Under TrumpGeoffrey Styleshttp://www.blogger.com/profile/18047970229068397492noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-6199410.post-79306677676802558472017-02-14T08:25:37.547-05:002017-02-14T08:25:37.547-05:00Excellent question, Strider. The long-term cost of...Excellent question, Strider. The long-term cost of inactivity in a highly technical part of the industry--for both careers and companies--is growing. HR managers have been talking about the "big crew change" for years, but how many expected it to look like this? Offshore, in particular, won't bounce back quickly, because these are the highest cost projects with the most financial risk. <br /><br />The market wants to see that OPEC's cuts and growing demand deliver sustained inventory draw-downs before moving much higher, while other players are betting that the modest recovery in US tight oil drilling will lead to another collapse like 2014. The missing ingredient right now is new demand, and the door for exports was opened a year before Trump took office. Can the Permian Basin outcompete the North Sea and W. Africa for global buyers? Geoffrey Styleshttps://www.blogger.com/profile/18047970229068397492noreply@blogger.comtag:blogger.com,1999:blog-6199410.post-36955453196308334622017-02-14T07:53:07.551-05:002017-02-14T07:53:07.551-05:00Colleagues (in the oil patch) from southern states...Colleagues (in the oil patch) from southern states believed all stacked rigs would miraculously get back to work as soon as Trump stepped into the Oval office. I guess any recovery in oil prices will be attributed to Trump by gullible fools, irrespective of whether he has a hand in it or not. But what happens if all those unreal expectations aren't fulfilled?<br /><br />As of now, things look bleak, especially for service companies. Schlumberger employees in the field have already taken upto 40% pay cuts as contract rates offered by Oil Co's are close to the price of peanuts per pound. Offshore drilling contractors are willing to offer jack-up rigs for as little as $50k/day in places like India. Many have folded. Land rigs are stacked in the dessert, as far as the eye can see. Folks with 30+ years experience have been sitting at home for over a year. Recovery doesn't look anywhere on the horizon. I wonder how long the industry can endure such a long-drawn slowdown.Striderhttps://www.blogger.com/profile/10552223491763409699noreply@blogger.comtag:blogger.com,1999:blog-6199410.post-8397771761298330812017-01-23T08:41:53.085-05:002017-01-23T08:41:53.085-05:00Thank youThank youBarn Alhttps://www.blogger.com/profile/12409552911922469027noreply@blogger.com