Hey Oil Barons.......

[Storm the Field 5293]

$74.25. Highest close since the SVB-fueled tantrum 20 days ago.

Go ahead and have Porterhouse bookmark this post to blame me if prices recede tomorrow.

[Guest]

1 hour ago, HamsterHookah said:

@Porterhouse Is Dallas PC doing anything similar to this event that you know of: https://www.eventbrite.com/e/american-petroleum-institute-april-11th-general-meeting-tickets-595063961327?aff=ebdssbdestsearch

Nah. But tell me what the dude from Kung Fu AI says. 

We have monthly luncheons for ADAM, and six Wildcatters receptions per year. 

[HamsterHookah 112]

4 minutes ago, Porterhouse said:

Nah. But tell me what the dude from Kung Fu AI says. 

We have monthly luncheons for ADAM, and six Wildcatters receptions per year. 

I'm probably not going to go, some of my peers are though and I'll get the download. With AI/AGI and chatgpt and all these things being so hot I thought it was interesting to see the Petroleum club introduce some topicality into the usual mix. I'm about sick of hearing about ESG and sustainability as the injection of topical industry drivers.

[Guest]

9 minutes ago, HamsterHookah said:

I'm probably not going to go, some of my peers are though and I'll get the download. With AI/AGI and chatgpt and all these things being so hot I thought it was interesting to see the Petroleum club introduce some topicality into the usual mix. I'm about sick of hearing about ESG and sustainability as the injection of topical industry drivers.

ESG is about as dead a topic as there is. 

[HamsterHookah 112]

5 minutes ago, Porterhouse said:

ESG is about as dead a topic as there is. 

All the energy and O&G conferences I have gone to the last year have focused on it; whether it be equality in procurement or sustainability in investments, and most of these are moderated by the Big 4 to be fair, but it's definitely a lip-service topic alive and well from the back-office corporate functions.

Edited March 30, 2023 by HamsterHookah

[Patricio Swayze 17058]

Even with gas prices in the shitter, I am getting hit up left and right by recruiters. Had an interview today that I don’t think I am interested in. Then another 2 recruiters called me. One for an LNG job and another for a topsides project. It’s averaging 2 a week for a few months now.

[Guest]

38 minutes ago, HamsterHookah said:

All the energy and O&G conferences I have gone to the last year have focused on it; whether it be equality in procurement or sustainability in investments, and most of these are moderated by the Big 4 to be fair, but it's definitely a lip-service topic alive and well from the back-office corporate functions.

It’s fading and fast. It used to be the main talking point from ‘19-‘22 and now it’s truly a lip service item. I heard Chesapeake’s CEO speak Monday. He said zero about ESG, but did speak about sustainability, and was very critical of Granholm and said in ‘22 she compared all the CEOs that had assembled for their CERA Week talk to Kodak executives.   His point was, this year, her tune had changed. 

18 minutes ago, Patricio Swayze said:

Even with gas prices in the shitter, I am getting hit up left and right by recruiters. Had an interview today that I don’t think I am interested in. Then another 2 recruiters called me. One for an LNG job and another for a topsides project. It’s averaging 2 a week for a few months now.

Good for you. 

[Storm the Field 5293]

WTI $75.55 (+8% on the week)

Nat Gas $2.20 (+6% on the week)

It's a start!

 

[Captainant 27628]

Well I for one am SHOCKED that the O&G industry doesn't care about sustainability or governance!

I'd be curious to hear how they're pitching AI/ML services at y'all though. I've seen quite a few different approaches from completions optimizations, exploration prediction with seismic data, etc etc, but never seen a meaningfully useful natural language model like chatGPT used

[Patricio Swayze 17058]

Well I for one am SHOCKED that the O&G industry doesn't care about sustainability or governance!
I'd be curious to hear how they're pitching AI/ML services at y'all though. I've seen quite a few different approaches from completions optimizations, exploration prediction with seismic data, etc etc, but never seen a meaningfully useful natural language model like chatGPT used

I know this mostly a thread about the financial side of the business, but from the engineering and project execution stand point I find it troubling. There is a chance this could put a lot of folks out of work. I can see it affecting:

Project management
Project controls
Document and information management
Supply chain
Exploration

But I think O&G industries will be slow to adopt AI…I think. But then again the baby boomers are retiring as well as the older half of Gen X.

[Guest]

17 hours ago, Captainant said:

Well I for one am SHOCKED that the O&G industry doesn't care about sustainability or governance!

I'd be curious to hear how they're pitching AI/ML services at y'all though. I've seen quite a few different approaches from completions optimizations, exploration prediction with seismic data, etc etc, but never seen a meaningfully useful natural language model like chatGPT used

ESG for O&G is only the E.

17 hours ago, Patricio Swayze said:

I know this mostly a thread about the financial side of the business, but from the engineering and project execution stand point I find it troubling. There is a chance this could put a lot of folks out of work. I can see it affecting:

Project management
Project controls
Document and information management
Supply chain
Exploration

But I think O&G industries will be slow to adopt AI…I think. But then again the baby boomers are retiring as well as the older half of Gen X.

Unless it captures escaped revenue or adds to profitability, that’s just added G&A for private companies. There’s a huge bifurcation between publics and privates when it comes to these activities. 

[Storm the Field 5293]

OPEC+ announces a surprise new round of production cuts through the end of the year.

Led by Saudi (500K), Iraq (210K), Kuwait (150K), and UAE (145K). Several other countries cutting by 50K or so. Total cuts amount to about 1.15M barrels a day. IN addition, Russia is extending its current "temporary" 500k cut through the end of the year (not that I think they have much choice regardless).

Almost every analyst I follow was expecting them to stay the course at tomorrow's meeting. Quite an unexpected outcome.

[babysdaddy 2719]

[tx 3 putt 76869]

On 3/30/2023 at 3:00 PM, Patricio Swayze said:

Even with gas prices in the shitter, I am getting hit up left and right by recruiters. Had an interview today that I don’t think I am interested in. Then another 2 recruiters called me. One for an LNG job and another for a topsides project. It’s averaging 2 a week for a few months now.

planner jobs ?

Edited April 2, 2023 by tx 3 putt

[tx 3 putt 76869]

3 hours ago, Storm the Field said:

OPEC+ announces a surprise new round of production cuts through the end of the year.

Led by Saudi (500K), Iraq (210K), Kuwait (150K), and UAE (145K). Several other countries cutting by 50K or so. Total cuts amount to about 1.15M barrels a day. IN addition, Russia is extending its current "temporary" 500k cut through the end of the year (not that I think they have much choice regardless).

Almost every analyst I follow was expecting them to stay the course at tomorrow's meeting. Quite an unexpected outcome.

‘Cuts’ 

[Fudge Nuggets 19188]

VIP room at Treasures gone be lit this week.

[bluto 4912]

Wti back up to 81

[Armybrat 40822]

3 hours ago, Fudge Nuggets said:

VIP room at Treasures gone be lit this week.

Mrs. Brat might get a new necklace for her birthday next month. 🤔

[Guest]

10 hours ago, Storm the Field said:

OPEC+ announces a surprise new round of production cuts through the end of the year.

Led by Saudi (500K), Iraq (210K), Kuwait (150K), and UAE (145K). Several other countries cutting by 50K or so. Total cuts amount to about 1.15M barrels a day. IN addition, Russia is extending its current "temporary" 500k cut through the end of the year (not that I think they have much choice regardless).

Almost every analyst I follow was expecting them to stay the course at tomorrow's meeting. Quite an unexpected outcome.

Tired to post this three separate times today: We appear to be out of the banking mini-crisis. China Covid lockdown is over. With inflation / interest rates where they are, the cheap capital of the last decade just isn’t available, and that’s going to affect supply. The supply story is not understood; the media hears about these cuts and just presumes it’s plentiful worldwide. It’s not.  The above should send prices markedly higher tomorrow (unless Storm the Field just jinxed it), and with the supply story unfolding over the next several quarters?  I feel a Goldman reform cast in the short-term works. 

[txduck87 985]

Mrs. Brat might get a new necklace for her birthday next month. 

Pearl? Impressive at your age.

[Storm the Field 5293]

Quite a interesting ride between stops at $80 on 3/3 and then again on 4/3. 

Who knew you could pack both an international banking crisis and an OPEC surprise cut into just 30 days?

[Guest]

3 hours ago, Storm the Field said:

Quite a interesting ride between stops at $80 on 3/3 and then again on 4/3. 

Who knew you could pack both an international banking crisis and an OPEC surprise cut into just 30 days?

Mini-crisis. That was really nothing. And why is Chris Simms wearing a tank top?  Major rides rollercoasters better. 

[Patricio Swayze 17058]

planner jobs ?

I have been seeing a lot of planner jobs as that is my expertise, but in general a lot of Project Controls, Project Management and Project Engineer jobs.

[Guest]

1 minute ago, Patricio Swayze said:

I have been seeing a lot of planner jobs as that is my expertise, but in general a lot of Project Controls, Project Management and Project Engineer jobs.

I’m not sure what these roles would do for an E&P company. 

[Patricio Swayze 17058]

I’m not sure what these roles would do for an E&P company. 

That surprises me you think that. I’ll assume you are serious and reply seriously.

I currently work for a mid major and there are several Project Planners in our Houston office as well as a dozen cost controllers and several Project Controls Managers. In our group that is drilling, completing and delivering oil and gas to market we have a couple of PMs and PE’s. Of course on staff we have several geos, reservoir, drilling and completions engineers.

[Guest]

1 hour ago, Patricio Swayze said:

That surprises me you think that. I’ll assume you are serious and reply seriously.

I currently work for a mid major and there are several Project Planners in our Houston office as well as a dozen cost controllers and several Project Controls Managers. In our group that is drilling, completing and delivering oil and gas to market we have a couple of PMs and PE’s. Of course on staff we have several geos, reservoir, drilling and completions engineers.

I don’t doubt you. I just don’t know what those roles entail. For private E&Ps, even with robust drilling programs for a small company where they have a few rigs running, I don’t see these positions. 

[tx 3 putt 76869]

2 hours ago, Patricio Swayze said:

I have been seeing a lot of planner jobs as that is my expertise, but in general a lot of Project Controls, Project Management and Project Engineer jobs.

Goto projects, then you can dump stuff on the planner and head to lunch 😂😂😂

I loved being a project engineer and project manager 

Edited April 4, 2023 by tx 3 putt

[Patricio Swayze 17058]

I don’t doubt you. I just don’t know what those roles entail. For private E&Ps, even with robust drilling programs for a small company where they have a few rigs running, I don’t see these positions. 

I have never worked for a small company. We are drilling and completing wells in 4 fields in North America. The rig count for the field I work is 3. I guess total rig count for North America is close to 10. The company owns outright or operating interest in close to 1000 wells in my business unit.

I can not imagine scheduling and managing 3 rigs, 1-2 completions crews, a civil crew for pad construction, process and mechanical engineers for facilities (pipelines, compression station, etc) without this kind of team. Typically we have a dedicated drilling engineer for each rig. Unless you are saying you don’t know what these roles do? Is that what you are asking?

[Patricio Swayze 17058]

Goto projects, then you can dump stuff on the planner and head to lunch
I loved being a project engineer and project manager 

Hahaha. I have had good relationships with the PEs and PMs and usually go to lunch with them. I keep getting asked to do PCM or PE roles, but I don’t want the headache. I like my time off.

[Guest]

1 hour ago, Patricio Swayze said:

I have never worked for a small company. We are drilling and completing wells in 4 fields in North America. The rig count for the field I work is 3. I guess total rig count for North America is close to 10. The company owns outright or operating interest in close to 1000 wells in my business unit.

I can not imagine scheduling and managing 3 rigs, 1-2 completions crews, a civil crew for pad construction, process and mechanical engineers for facilities (pipelines, compression station, etc) without this kind of team. Typically we have a dedicated drilling engineer for each rig. Unless you are saying you don’t know what these roles do? Is that what you are asking?

Are you employed by an E&P, the mid major, directly?  I mean they have 10 rigs in NA, so it sounds like they operate perhaps internationally too. These are much bigger operations. Generally companies with which I’m familiar have a reservoir engineer and an operations engineer. The Ops guy is generally supervising what is going on in the field and the reservoir guy is in the office overseeing evaluations of future deals and economic evaluations of wells to be drilled. The Ops guy will oversee a plethora of contractors with whom the company is intimately familiar when drilling and completing a well. Depending on the size they generally employ land, accounting, and geoscience people too.  

[fattyflattie 4639]

2 hours ago, Patricio Swayze said:

I like my time off.

This.  I don't know why it never dawned on me when I was coming up that all my bosses were on 0700 calls every day.  Every. Day.  It just never clicked.  And now there's a camera in your face while your on.  

[Patricio Swayze 17058]

Are you employed by an E&P, the mid major, directly?  I mean they have 10 rigs in NA, so it sounds like they operate perhaps internationally too. These are much bigger operations. Generally companies with which I’m familiar have a reservoir engineer and an operations engineer. The Ops guy is generally supervising what is going on in the field and the reservoir guy is in the office overseeing evaluations of future deals and economic evaluations of wells to be drilled. The Ops guy will oversee a plethora of contractors with whom the company is intimately familiar when drilling and completing a well. Depending on the size they generally employ land, accounting, and geoscience people too.  

If your initial comment was about contract vs direct hire, it probably could have been worded better. I am contract, last summer they asked if I was interested in going direct, I declined. I am sure the compensation package would be nice but I like getting paid for all my work. Even with a bonus structure it’s not always appealing as you never know if these companies will decide to cancel bonuses in any given year. Texas is a right to work state so there isn’t much difference (some benefits) between contract and direct at the end of the day. They can tell both to clean out your desk and leave without any real reasoning. But, some of the Project Controls team are direct hires. Our PE in the field went from contract to direct after turning them down a couple of times (I am guessing he works 60 hours a week and the package didn’t compensate for that). Anyways, The PMs are direct as are the drilling, completions, reservoir guys.

Operations is a separate group. We obviously work hand and hand with them because wells have to be shut in when drilling adjacent wells (whether on the same pad or different depending on distance and chance of subsurface communication). We typically hand things off to them after a well flows back for a week. Even our field constructions supervisor (direct) reports to the PM in my group.

And yes, this company is international. Operations in the US, Canada, several Latin American countries and a lot of work in Europe.

Hopefully that explains things?

[Storm the Field 5293]

Breaking: Permian Acreage Still Expensive.

Announced yesterday that Ovintiv is selling their remaining Bakken acreage and going all-in on the MIdland Basin. Dropping $4.3B to buy up 65K acres from 3 EnCap companies (Black Swan, Piedra, and PetroLegacy). 

4.3B/65K = ~$66K/acre.

 

[BTW 370]

I should ask my Piedra buddies if they would like to buy me lunch this week

[HamsterHookah 112]

This is interesting:

Japan: In a break with its Western allies, Japan has started purchasing Russian oil above the G7’s price cap of $60 per barrel. Japan has been a steadfast supporter of Ukraine but remains reliant on Russia for energy.

1 hour ago, Storm the Field said:

Breaking: Permian Acreage Still Expensive.

Announced yesterday that Ovintiv is selling their remaining Bakken acreage and going all-in on the MIdland Basin. Dropping $4.3B to buy up 65K acres from 3 EnCap companies (Black Swan, Piedra, and PetroLegacy). 

4.3B/65K = ~$66K/acre.

 

Do you have a lot of experience with Ovintiv?

[Guest]

56 minutes ago, HamsterHookah said:

This is interesting:

Japan: In a break with its Western allies, Japan has started purchasing Russian oil above the G7’s price cap of $60 per barrel. Japan has been a steadfast supporter of Ukraine but remains reliant on Russia for energy.

Do you have a lot of experience with Ovintiv?

Most of my royalty money comes from Ovintiv and Continental. Let’s just say Ovintiv….doesn’t have their shit together. 

[HamsterHookah 112]

3 minutes ago, Porterhouse said:

Most of my royalty money comes from Ovintiv and Continental. Let’s just say Ovintiv….doesn’t have their shit together. 

Ovintiv acquired Encana if I recall. I spent some time in Calgary some years ago with IBM consulting Suncor and there was some Encana guys who came over to go loved them and almost all of them eventually boomeranged back.

Ovintiv is Denver based mostly; they seem like a good, mid-sized upstream company. Can you give me a meatier response on then and their struggles?

[Angry Gorilla 1766]

Encana acquired the company I was working for /csb

[Guest]

1 hour ago, HamsterHookah said:

Ovintiv acquired Encana if I recall. I spent some time in Calgary some years ago with IBM consulting Suncor and there was some Encana guys who came over to go loved them and almost all of them eventually boomeranged back.

Ovintiv is Denver based mostly; they seem like a good, mid-sized upstream company. Can you give me a meatier response on then and their struggles?

Ovintiv is Encana renamed. Or after or in conjunction with their Newfield purchase.

Other people can comment on their struggles, and I know some of their people, and they haven’t impressed. I don’t think they ever had a stellar reputation. Denver was always their American HQ but pretty sure they moved the whole thing to Houston 5 or so years ago. My issue with them is their division orders and owner relations people. The wells they’ve drilled and completed in my area are solid. 

Edited April 4, 2023 by Porterhouse

[HamsterHookah 112]

53 minutes ago, Porterhouse said:

Ovintiv is Encana renamed. Or after or in conjunction with their Newfield purchase.

Other people can comment on their struggles, and I know some of their people, and they haven’t impressed. I don’t think they ever had a stellar reputation. Denver was always their American HQ but pretty sure they moved the whole thing to Houston 5 or so years ago. My issue with them is their division orders and owner relations people. The wells they’ve drilled and completed in my area are solid. 

Thanks for the response. As a strategy consultant with customers in O&G, but not a dyed in the wool O&G guy, you've been helpful/insightful to people like me, on this thread.

Edited April 4, 2023 by HamsterHookah

[52-80 19147]

Gas at $2. Congrats everyone. 

[Guest]

On 4/4/2023 at 2:59 PM, HamsterHookah said:

Thanks for the response. As a strategy consultant with customers in O&G, but not a dyed in the wool O&G guy, you've been helpful/insightful to people like me, on this thread.

Thank you. Ovintiv still HQ’ed in Denver. Maybe they moved American HQ from Houston to Denver when they moved from Calgary. 

7 hours ago, 52-80 said:

Gas at $2. Congrats everyone. 

@Storm the FieldThanks StF. 

[Storm the Field 5293]

Stories out today that XOM has held preliminary talks to buy PXD for nearly $50B.

Holy hell.

[Fudge Nuggets 19188]

Hopefully it goes better than their XTO fuckup.

[billfromlaketravis 11447]

20 hours ago, Storm the Field said:

Stories out today that XOM has held preliminary talks to buy PXD for nearly $50B.

Holy hell.

Feels like it's moving. I'm getting texts about it from XOM people. 

I hope they know what they're doing. What's the conventional piece of Pioneer look like? 

As my engineering rabbi told me once, majors always screw up shale. 

[Guest]

I’m having SS speak at an event in a few weeks. Guess fucking not. 

[Storm the Field 5293]

Markets seem to think there's traction on the XOM deal. PXD stock up 6% today. 

[nbmishoid 949]

This can only mean 5 years of low prices.  Fuck.

[Guest]

17 hours ago, nbmishoid said:

This can only mean 5 years of low prices.  Fuck.

Negative. Oil’s getting ready to take off in a big way. I don’t know WTF is going on with gas. 

[nbmishoid 949]

Porter - check your satire meter.  Merely reflecting on XOM’s last mega mistake