Typing this as I sit at my dining room table on a Tuesday morning in Midland. XTO, Concho, Apache (to name a few) have all closed down their offices to non-essential employees while the rest WFH at least for the next few weeks.
I'm repeating what many have already said, but there is about to be a whole lot of really cheap office space available downtown if anyone is considering opening up an independent O&G company in the Permian.
Looking at the strip, we're in for a 12-24 month stretch with $30-something oil. If this shutdown continues longer than people think, it's won't be just Saudi with a bunch of crude in storage. Everyone is going to have barrels stashed everywhere they can cram them, which means it'll take even longer to unwind all of that excess inventory (don't even get me started on DUCs).
I know people believe that Russia is the best positioned to wait this out, but I'm not convinced. Can Saudi not outlast them? I am pretty sure that the US shale players are going to feel the brunt of this, but if Russia starts to feel the pinch, won't they just start a war to get prices to spike?
Sorry for rambling