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936horn

By 936horn
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Trey3216

Trey3216 15346

Posted
Posted
17 minutes ago, Storm the Field said:

Hah. I didn't even read the article linked in the tweet. Headline didn't interest me. Was really focusing on the prediction in the tweet of at least 5 bcf/day coming offline in the next few months. Keep anything like that up for half a year and you're looking at something potentially approaching a trillion cubic feet of supply reduction.

Yep.   We’re already down to around 92bcf/d from 97.  Could be under 90 by June.  

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Pescado_Rojo
Pescado_Rojo

I bet you could score a Lafayette 10 for a mani/pedi gift card and a pound of boudin right now.  I was sitting in a Starbucks by the med center in Laffy once, and a brand new white Escalade, lift

Rimbo
Rimbo

If you're Trump right now, you're watching Fox News, eating a cheeseburger, and getting mad about the lyin' media and preparing your next tweet about how some lupus treatment should be given to your s

fattyflattie
fattyflattie

My time finally came last Friday AM. I have survived around a dozen, give or take 1-2, since ‘08.  I was consulting for a project set to go in ‘22, but with all the uncertainty, it sounds like they’ve

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Storm the Field

Storm the Field 5295

Posted
Posted

As an attorney and title guy, I'm getting a chubby thinking about nat gas drilling actually being a thing again. Would be nice for there to be work to do in other areas of the state than just 3-4 counties in the Permian or New Mexico .

Also, the potential for a lot of acreage to start coming unleased as a result of shut-ins and cancelled drilling plans, and all the litigation that will likely result when operators and landowners start fighting over whether leases actually terminated.

Just need to stay alive through the barren times ahead.

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Eastwood

Eastwood 4394

Posted
Posted
18 minutes ago, Storm the Field said:

Also, the potential for a lot of acreage to start coming unleased as a result of shut-ins and cancelled drilling plans, and all the litigation that will likely result when operators and landowners start fighting over whether leases actually terminated.

Force majeure litigation for literally years. Just in time for me to take the bar.

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Neonmoon

Neonmoon 38129

Posted
Posted
9 minutes ago, BLKNSTY said:

https://www.bloomberg.com/news/articles/2020-04-23/hamm-s-shale-explorer-invokes-force-majeure-citing-negative-


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While most people would assume a pandemic is covered by a Force Majeure Clause (Act of God), some courts in the past have taken a narrow interpretation and said unless it specifically is listed, it is not covered. 

The lawsuits will be interesting to watch through all of this

 

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Storm the Field

Storm the Field 5295

Posted
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Had this conversation  recently with some other title attorney buddies. Most standard force majuere clauses don't specifically say anything about a pandemic. You can bet they will going forward.

And honestly, I don't know that a standard  FM clause would save you here. Most are written in a way to excuse the Lessee only if they're prevented from conducting operations or producing due to Act of God or governmental order. "Prices have shit the bed due to a global demand shock" doesn't really mean you're incapable of operating the lease, it just means that doing so is fundamentally uneconomic.

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Eastwood

Eastwood 4394

Posted
Posted
29 minutes ago, Storm the Field said:

And honestly, I don't know that a standard  FM clause would save you here. Most are written in a way to excuse the Lessee only if they're prevented from conducting operations or producing due to Act of God or governmental order. "Prices have shit the bed due to a global demand shock" doesn't really mean you're incapable of operating the lease, it just means that doing so is fundamentally uneconomic.

I think this is right. If this situation satisfies FM, it could open up a Pandora's Box of economical FM reasons. Texas courts are notoriously pro-lessee, but this is probably a bridge too far. Other companies going out and drilling holes into the ground makes the argument even weaker. "Go and do likewise."

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FORTY NINE TO ZERO

FORTY NINE TO ZERO 2652

Posted
Posted

Well my one big O&G customer just paid their last huge invoice. It was over 40 days past due. So I got that going for me.

I was getting worried. I probably will not be getting any orders from them anytime soon though. 
 

thank god im very diversified overall. Well as much as you can be as a pump rep in Houston. 

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JimmyTwoTimes

JimmyTwoTimes 79

Posted
Posted
8 hours ago, Neonmoon said:

I've seen projections of up to 9 bcf/d coming offline in May 

3 to 5 most likely in May in my opinion. But who knows. These declines will be offset by demand destruction and LNG cancellations throughout q2 and potentially q3. Really messy in the front of the curve but unquestionably supportive winter/2021.

Problem is that it’s become a really crowded trade at this point. Lots of Doctor/dentist money in the natty now as well.

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Blotto

Blotto 23525

Posted
Posted

Probably a stupid question, but I don't know jack shit about refining. Can all refineries process any grade of crude, but Gulf refineries are largely "tuned" for heavy crude, so processing lighter crude is less efficient/profitable, so they only process heavy crude. Or is the refining process significantly different enough that lighter crude requires different processing infratructure. Or does the type of crude dictate what refined products are possible, so the process is only geared to specific products making it pointless to take in different grades.  What is the primary driver behind the types of crude that a refinery can process?

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FartingMonk

FartingMonk 3608

Posted
Posted
2 minutes ago, Blotto said:

Probably a stupid question, but I don't know jack shit about refining. Can all refineries process any grade of crude, but Gulf refineries are largely "tuned" for heavy crude, so processing lighter crude is less efficient/profitable, so they only process heavy crude. Or is the refining process significantly different enough that lighter crude requires different processing infratructure. Or does the type of crude dictate what refined products are possible, so the process is only geared to specific products making it pointless to take in different grades.  What is the primary driver behind the types of crude that a refinery can process?

It used to be that way but just about everyone is now primed for "opportunity crude" which basically.means cheap sour shit

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J.R.

J.R. 150

Posted
Posted
2 hours ago, FartingMonk said:

It used to be that way but just about everyone is now primed for "opportunity crude" which basically.means cheap sour shit

I would say most of the more complex USGC refineries have been modified now to accommodate a lot more light sweet. But to answer the original question, two things dictate the product slate: the crude AND the refinery design. More precisely, the product slate is dictated by the specific units in the refinery. The spread between cheap sour shit and light sweet had narrowed significantly due to the Vz meltdown. 

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Neonmoon

Neonmoon 38129

Posted
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Quote

Shares of Chesapeake Energy (NYSE:CHK) are skyrocketing today, up by more than 37% as of 10:30 a.m. EDT, following news that the oil and gas specialist adopted a poison pill to shield its "net operating loss carryforwards" (NOLs) from a potential acquirer.  

Here is the news

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Cajun

Cajun 11714

Posted
Posted
33 minutes ago, Dr. Beeper said:

Everyone who holds CHK do yourself a favor and sell it all now. Or just continue to get kicked in the balls. Whatever you prefer. 

But I've come to enjoy the pain!

It's familiar and comforting somehow.

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Cody2422

Cody2422 273

Posted
Posted (edited)
8 hours ago, Blotto said:

That's some serious bullshit. 

Yeah, I kind of knew it was coming.  We had some previous conversations and I got the dreaded “we need to know how many days you have billed to this project” inquiry.  

Edited by Cody2422
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Parliament

Parliament 14260

Posted
Posted

I may have mentioned this upthread.  Data is a bit old, but it can't be much different today.  Agriculture is having a very rough go of it too.  Besides those 2 industries, all we have is the sale of NDSU Bison t shirts.  And we can hardly afford all of our luxuries from that.

Oil and gas development goes a long way funding our state’s priority and future.

At more than $1.63 billion paid in taxes, oil and gas production and extraction taxes accounted for 45.1 percent of all taxes collected by the state in 2017.

https://energyofnorthdakota.com/home-menu/bakken-benefits/tax-revenues/

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Storm the Field

Storm the Field 5295

Posted
Posted (edited)

Another 64 rigs down. Total rig count now stands at 465 (378 oil/85 gas), down 525 since the same week last year. That's the 2nd lowest amount of gas rigs recorded since Baker Hughes started keeping track in July 1987. 

Have pretty steadily dropped 60-70 rigs each week since the price crash during the 2nd week of March. At this rate, we should bottom out ~250 by Memorial Day.  That would blow out the previous record of 404 on heading into Memorial Day 2016.

Edited by Storm the Field
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tequila

tequila 318

Posted
Posted
Another 64 rigs down. Total rig count now stands at 465 (378 oil/85 gas), down 525 since the same week last year. That's the 2nd lowest amount of gas rigs recorded since Baker Hughes started keeping track in July 1987. 
Have pretty steadily dropped 60-70 rigs each week since the price crash during the 2nd week of March. At this rate, we should bottom out ~250 by Memorial Day.  That would blow out the previous record of 404 on heading into Memorial Day 2016.

I still believe the most interesting number is active frac spreads. Drilling a well is less than 30% of an AFE today. The number that really matter is the DUC conversion rate. I am thinking about drilling and casing 5 wells in the next 3 months just because services are going to be so cheap. No intent to complete until pricing makes a meaningful recovery.


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Parliament

Parliament 14260

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Posted

Would someone please translate this for me?  Are brokerages afraid their clients can't cover margin calls?  And what's the significance of this?  With some folks on "Sell only," will it be enough to drive prices down?

TD Ameritrade told customers it would only allow closing trades in June and July U.S. crude futures contracts as well as in all U.S. crude options contracts.

“We made this decision based on the volatility and liquidity in the crude markets over the last week. This allows those markets to continue to return to their prior liquidity and volatility levels,” said J.B. Mackenzie, managing director in futures and forex at TD Ameritrade.

Two other brokerages, London-based Marex Spectron and INTL FCStone, said they were limiting new positions being taken up after the high-volatility trading on Monday delivered big losses to holders of that contract.

https://www.reuters.com/article/us-global-oil-brokerages-idUSKCN2253P6

Industrial & Commercial Bank of China Ltd., the nation’s largest lender, suspended sales of more products that allowed retail investors to speculate on swings in commodities after many were burnt by the unprecedented crash in crude oil.

The lender will temporarily halt opening of new positions in products linked to crude oil, natural gas, and soybeans for individuals from 9 a.m. tomorrow, according to a statement on Monday. ICBC said the suspension is to protect clients’ interests due to the recent volatility in commodities.

The move comes after a product linked to oil, sold by rival Bank of China Co., lead to more than $1 billion in losses for clients after falling below zero, suggesting there’s a hidden pocket of risk in the system. Official figures show there are about 1.88 billion yuan ($265 million) in outstanding in commodity-related investment vehicles, making up less than 0.01% of China’s wealth product market.

The implosion of Bank of China’s “Crude Oil Treasure” caused an uproar among investors, who have taken to the Internet to protest the lender’s handling of the contract rollover and to demand it shoulder some of the losses. Investors in similar products offered by other banks mostly avoided that type of loss due to different designs.

https://www.bloomberg.com/amp/news/articles/2020-04-27/china-s-biggest-bank-halts-swath-of-commodities-retail-products?__twitter_impression=true

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Fudge Nuggets

Fudge Nuggets 19195

Posted
Posted
7 hours ago, tx 3 putt said:

seafood on fridays

steaks on saturday

turkey and dressing on sundays

another night was bbq chicken and ribs, grilled burgers  

it was all good 

Standard fare across most rigs in the GOM back in the day.  I usually gained minimum 5 lbs every two-week hitch working offshore.

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