What are you guys paying for gas?

[Deleted member 28227]

The real reason Big Oil won’t save the U.S. from high gas prices — TIME

After years of losses prompted "capital discipline", oil companies are returning soaring profits to investors, not spending it on riskier new drilling projects.

apple.news

Maybe our resident masshole knows what he speaks of?

Read this article and note the contrasting takes of the Fox analyst.

Texas driller produces US oil industry 'miracle' — Fox News

US-based drilling companies work to produce more market supply while the Biden admin looks to outsource.

apple.news

Vicki Hollub of OXY gave a talk at CERA and basically said they were sticking to their Q42021 plan, no additional production due to the war or current oil prices. Point being small companies and goliaths same outlook.

 

[JLS]

Vicki Hollub of OXY gave a talk at CERA and basically said they were sticking to their Q42021 plan, no additional production due to the war or current oil prices. Point being small companies and goliaths same outlook.

So it’s not about being butthurt over Venezuela or fear of taxes?

"Wall Street has a straitjacket on these companies," she noted, while adding that Senate Democrats' plan to tax oil companies’ windfall profits could disincentivize investors.


More importantly, however, is how U.S. drillers feel insulted by reportedly ongoing oil trade negotiations with Venezuela.

 

[Deleted member 28227]

So it’s not about being butthurt over Venezuela or fear of taxes?

said the company and other U.S. producers are “in a really dire situation” insofar as they need to grow production in the face of supply chain limitations caused by the pandemic. At a recent industry gathering, she told an audience that output cannot be ramped up right away. Of the U.S. shale basins, the Permian is the only one that can increase production, she said. Though back to its pre-pandemic production levels with oil volumes exceeding 5 MMbo/d, the Permian will still face challenges, Hollub said.

“The call for incremental production in the United States, at this point, especially with the supply chain challenges, can’t happen at the level that’s needed not only for our country but for the world. We’re in a significantly challenging scenario today.

 

[Cornbread]

I am lucky to have a gas lease for a small property I own in southwest Penna. I pray these idiots buy electric cars and trucks. They will make me a millionaire. Dopes, led by the crooked. We are flooded with production in Southwest Penna. When I was up there during deer season I saw a number of new rigs (approx 4). Remember with fracking, on one pad they can drill up to 28 wells, and these wells are now predicted to last around 30 years. What is holding EQT up is the idiot bureocrats on the Mountain Valley Pipeline, through I believe Virginia in the area of the National forest that I-77 crosses through the tip of Virginia. It's kinda like the Keystone crap. Only they killed Keystone because Warren Buffet's railroad hauls the oil from Canada, and remember he is a big donator to the Dems. They are even drilling for oil in Ohio!

Get the govt involved ("I'm here to hep ya") and things will be screwed up. The Bakkens in ND, SD & Montana have a huge amount of oil, like 3 times Prudhoe Bay.

 

[SAJ-99]

The real reason Big Oil won’t save the U.S. from high gas prices — TIME

After years of losses prompted "capital discipline", oil companies are returning soaring profits to investors, not spending it on riskier new drilling projects.

apple.news

Maybe our resident masshole knows what he speaks of?

Read this article and note the contrasting takes of the Fox analyst.

Texas driller produces US oil industry 'miracle' — Fox News

US-based drilling companies work to produce more market supply while the Biden admin looks to outsource.

apple.news

With all due respect to the author of the Time article, I have heard this song before. Big Oil will break and increase E&P. They always do.

The Fox News article is click-bait. The quote below shows it.
"With record-high gas prices and the market’s need for more supply, Tall City CEO Michael Oestmann says the company is working to increase daily production from 10,000 barrels to 20,000 by the end of the year."

10,000 brls? Are we supposed to take that seriously? Anyone who thinks you can cut off the world's third largest oil producer and "make up for it" with increased production from other areas is bat-chit crazy.

 

[JLS]

With all due respect to the author of the Time article, I have heard this song before. Big Oil will break and increase E&P. They always do.

The Fox News article is click-bait. The quote below shows it.
"With record-high gas prices and the market’s need for more supply, Tall City CEO Michael Oestmann says the company is working to increase daily production from 10,000 barrels to 20,000 by the end of the year."

10,000 brls? Are we supposed to take that seriously? Anyone who thinks you can cut off the world's third largest oil producer and "make up for it" with increased production from other areas is bat-chit crazy.

I agree with you. If oil stays high I think the financial discipline will wane. It’s human nature. But, I could be wrong.

And yeah, 10k barrels . I did really think the Venezuelan line was gold though. Really? WTF cares if you’re making money.

 

[Elkhunter24]

In central PA $4.39 for 87

 

[DouglasR]

A different life time ago I was an owner operator leased to a heavy freight company. I'm glad that is nothing but it a memory.

How did you escape?!?!
Tell me!!!

 

[DouglasR]

A different life time ago I was an owner operator leased to a heavy freight company. I'm glad that is nothing but it a memory.

Just really seems like it would be a good time to not re-up the license plates, sell the house and move into my car full time.

 

[Letthemgrow]

 

[Stocker]

Just really seems like it would be a good time to not re-up the license plates, sell the house and move into my car full time.

Line up my equipment on the street in front of the bank, drop my keys in the deposit box along with a note that says “it’s your headache now”.

Maybe I can get a job as a public speaker going around to high schools telling kids why they should go to college.

 

[Deleted member 28227]

With all due respect to the author of the Time article, I have heard this song before. Big Oil will break and increase E&P. They always do.

I can speak for the super majors, but for the independents is a bit more nuanced this time around.

A lot of folks have left the game, few younger folks are entering the industry “why work in a dying industry”, and inflation + the pandemic supply chain shortages mean costs are way up. Numbers I’ve seen are ~18% for super majors and 21% smaller companies with less scale. So essentially CAPEX numbers need to be like 40% for a company over last year to be increasing production and that 20% over inflation isn’t getting you as much as it once did.

Shale has only really been around for 15-20 years and just like with everyone recent events have been extraordinary, so I don’t think any one has “heard this song before”.

Main point being OG is subject to the same issues as the rest of the country I’m not sure why folks think it would be different.

The rig count is up, but we still have a ways to go to hit the 1074 rigs of 2018.



I do think as an industry we will increase production and prices will come down but it seems like it will happen more slowly. Can’t say what OPEC will do nor what Venezuela can make happen.

 

[SAJ-99]

I can speak for the super majors, but for the independents is a bit more nuanced this time around.

A lot of folks have left the game, few younger folks are entering the industry “why work in a dying industry”, and inflation + the pandemic supply chain shortages mean costs are way up. Numbers I’ve seen are ~18% for super majors and 21% smaller companies with less scale. So essentially CAPEX numbers need to be like 40% for a company over last year to be increasing production and that 20% over inflation isn’t getting you as much as it once did.

Shale has only really been around for 15-20 years and just like with everyone recent events have been extraordinary, so I don’t think any one has “heard this song before”.

Main point being OG is subject to the same issues as the rest of the country I’m not sure why folks think it would be different.

The rig count is up, but we still have a ways to go to hit the 1074 rigs of 2018.

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I do think as an industry we will increase production and prices will come down but it seems like it will happen more slowly. Can’t say what OPEC will do nor what Venezuela can make happen.

I will give you that the tune is different but the words are the same. If investors chase the performance, they will drill. A lot of people left the industry (like housing 2008) but money will bring them back. I agree it probably won’t happen fast and I’m not sure it will bring down prices much. I’ve said before, O&G execs don’t care what the average American pays for gas.

I’m suspect on the CEOs talk of logistical problems. What are those specifically? truck drivers? Most crude and gas is moved through pipelines. MLP index would be 2x as high as it is if logistics were a problem. Market is not confirming the concern.

I curious what types of declines we are see in Bakken and Permian well production. I remember people saying decline curves were steeper than projected but I’m not sure if they figured that out. The oil being there is one thing. Getting it out of the ground is another.

 

[Nick87]

Line up my equipment on the street in front of the bank, drop my keys in the deposit box along with a note that says “it’s your headache now”.

Maybe I can get a job as a public speaker going around to high schools telling kids why they should go to college.

 

[hank4elk]

$4.54 gal ,50 cents in 2 days. Because they can.

Because we became the no we can't country.

 

[Redmt]

How did you escape?!?!
Tell me!!!

I found that I could stay home and watch TV and loose less money.

 

[Redmt]

$6.45 for diesel at the cheap ass stations in Patterson CA.

 

[Redmt]

I follow an auction website and there's a 2019 Ford GT in the final hours right now. My wife gave me the choice between buying the car at the current $995,000.00 bid or diesel for my truck for next month.

 

[Deleted member 28227]

I’m suspect on the CEOs talk of logistical problems. What are those specifically? truck drivers? Most crude and gas is moved through pipelines. MLP index would be 2x as high as it is if logistics were a problem. Market is not confirming the concern.

Drilling and frack crew availability, not a lot of hot crews around new ones will be green. A lot of companies have service contracts that were signed in 2020-2021 and the rates on those compared to new contracts are quite high.

Getting drill pipe has been a chore… sand, frack chemicals, etc same supply chain issues as everyone else. A lot of different things go into a well. So the means to actually drill the well and the personnel to do so, shale doesn’t work like conventional it’s not “turning on taps” if you want more oil you have to drill, wells are (for the most part) flowed at capacity. I don’t think there are currently many productive, shut-in wells. (Shut-in due to field logistics non withstanding)

Typically pad drilled units are on pipe, but it’s not uncommon for new wells to be trucked for oil and pipes for gas, also water… you need lots of water on the completion side and then wells produce water pipe may or may not be used in either side… sand also trucked… so lots of trucking kinda no matter what.

 

[Redmt]

The Biden administration mantra. "Do not try to confuse me with facts".