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936horn

By 936horn
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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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Trey3216

Trey3216 15450

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On 5/19/2018 at 4:24 AM, Fudge Nuggets said:

Listen to this guy.  He is correct on this one.

 

On 5/18/2018 at 8:31 AM, Rex Kramer said:

Nothing. It’s a shit company with a deep-seated shit culture. Gas prices are not going to recover any time soon. If you have a chance to get out close to even, do it. 

 

On 5/18/2018 at 10:17 AM, Rex Kramer said:

Nope. This is common knowledge. They’ve always been a terrible company. 

 

On 5/19/2018 at 4:24 AM, Fudge Nuggets said:

Listen to this guy.  He is correct on this one.

Sorry, first time multi-quoting. 

 

Yes, I'm aware it's a shit company with a bad culture.  But they're not gonna go bankrupt this time around and it was priced like it was on the verge.  Not happening.  I bought on the way up in '16 and have had to buy on the way down.  I'm completely in the green now, and have made money hand over fist the last 3 weeks trading options on it so I've actually done pretty well.  I see this hitting $8 again sometime late this year.  I'll likely be pulling some off the table all the way up.  

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Posted
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30 minutes ago, Trey3216 said:

 

 

 

Sorry, first time multi-quoting. 

 

Yes, I'm aware it's a shit company with a bad culture.  But they're not gonna go bankrupt this time around and it was priced like it was on the verge.  Not happening.  I bought on the way up in '16 and have had to buy on the way down.  I'm completely in the green now, and have made money hand over fist the last 3 weeks trading options on it so I've actually done pretty well.  I see this hitting $8 again sometime late this year.  I'll likely be pulling some off the table all the way up.  

I’d pull it all off because I don’t believe in the company at all. They may not file for BK, but the risk taking culture is still there, and the shitty operator that pisses off everyone in the industry is still there, and gas will trade sideways for years. So, while they might not file imminently I in no way trust them to not fuck it up like next month. You’re playing with fire. 

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Trey3216

Trey3216 15450

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2 minutes ago, Rex Kramer said:

I’d pull it all off because I don’t believe in the company at all. They may not file for BK, but the risk taking culture is still there, and the shitty operator that pisses off everyone in the industry is still there, and gas will trade sideways for years. So, while they might not file imminently I in no way trust them to not fuck it up like next month. You’re playing with fire. 

Much appreciated.

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KYHorn

KYHorn 17567

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I'm not in the industry, but I invested in a few companies right after the crash in 08 and researched them a bit during that time. I invested in Cheniere (LNG) when it was around $2.5-3 per share and sold a few years back at around $50 per share. I always considered them the little company that could, though I had no idea what I was doing when I invested- I just knew that they were very low and were in the process of becoming an LNG exporter. I got lucky that this paid off for them. Anyway- do y'all know how they doing these days (obviously they're at $60 so not too bad)?

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Storm the Field

Storm the Field 5360

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28 minutes ago, Rex Kramer said:

Post Mem Day Vegas trip fog and haven’t kept up. What’s going on with prices?

Saudi and Russia both made comments over the weekend that they think the price rally has gone too far, too fast and are likely to announce  at their next meeting (6/22) that they'll be upping production anywhere from 300-800K barrels a day.

Also, rig count showed an increase of 15 rigs last week, 34 total in May. Biggest weekly/monthly increase in quite a while.

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1 hour ago, Storm the Field said:

Saudi and Russia both made comments over the weekend that they think the price rally has gone too far, too fast and are likely to announce  at their next meeting (6/22) that they'll be upping production anywhere from 300-800K barrels a day.

Also, rig count showed an increase of 15 rigs last week, 34 total in May. Biggest weekly/monthly increase in quite a while.

Overreaction. Demand is outstripping supply too much for that to matter. The glut is gone. Perhaps a good break to buy oil weighted E&P equities?

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Question for you guys about Central Basin Platform. Is Barnett production there gas-focused, or associated gas?  And is it inherently sour?  Producers that have Barnett production that I can see are Apache, Oxy, FANG, XTO, and several large private companies. 

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Archer

Archer 474

Posted
Posted (edited)
1 hour ago, kevwun said:

Got a call from Enervest about leasing my property.  I don't own enough land to get excited, but was wondering if they're a decent company?

They bought a company I used to work for and it was a complete cluster fuck. They let go people they meant to retain and told people they had a job only to find out it was the wrong person and have to turn around and release them. 

 

WSJ did a big piece on them a while back as one of the biggest PE funds to ever fail. 

 

No clue how they are with owner relations. 

Edited by Archer
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They also totally fucked their banks in a couple of different deals. I personally would never do business with them out of principle. 

What does this anecdote tell you?  Nothing other than when combined with what Archer said and what you googled, I’d be concerned that they drill/complete wells, and I’d be concerned about how they treat your surface. Where is your property?  Let’s see if the barons can recommend other operators for you to reach out to that’d compete with them. 

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Storm the Field

Storm the Field 5360

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Here goes dipshit again:

Quote

 

The U.S. government has quietly asked Saudi Arabia and some other OPEC producers to increase oil production by about 1 million barrels a day, according to people familiar with the matter.

The rare request came after U.S. retail gasoline prices surged to their highest in more than three years and President Donald Trump publicly complained about OPEC policy and rising oil prices on Twitter. 

"Looks like OPEC is at it again," Trump wrote in mid-April in a post on Twitter. "Oil prices are artificially Very High! No good and will not be accepted!"

The White House declined to comment on specific conversations, but a spokesperson for the U.S. National Security Council said access to affordable and reliable energy underpins global economic growth and the nation’s security.

"We welcome any market-based action that increases energy access and fosters a healthy global economy," the spokesperson said.

U.S. Treasury Secretary Steven Mnuchin last month disclosed Washington had "various conversations with various parties about different parties that would be willing to increase oil supply to offset" the impact of U.S. sanctions on Iranian oil output.

 

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Icahn has a terrible track record and the relationship with Grubb is perplexing. But Sylvia Barnes is a clown. The fact that she is on their board is equally perplexing. Both sides need to go away. Sand Ridge needs to disappear like her sister Chesapeake. Both terrible companies. 

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Random question but does anyone know which financial institutions would either a) help finance the purchase of a directional driller * or b) finance leveraged buyout of same?

* As described to me by a non energy guy, this group lays infrastructure pipe for midstream and midstream-esque ventures and is not a contract driller for E&P. I’m sure I lost something in translation, because this isn’t my bag and it certainly isn’t my friend’s. I have a very focused practice - E&P and midstream company clients. Purchase price would be $10-$20MM. Current cash flow is about $4.5MM and projected to be $6.5MM in ‘18. 

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kevwun

kevwun 16269

Posted
Posted (edited)
On 6/4/2018 at 6:36 PM, Rex Kramer said:

They also totally fucked their banks in a couple of different deals. I personally would never do business with them out of principle. 

What does this anecdote tell you?  Nothing other than when combined with what Archer said and what you googled, I’d be concerned that they drill/complete wells, and I’d be concerned about how they treat your surface. Where is your property?  Let’s see if the barons can recommend other operators for you to reach out to that’d compete with them. 

It is in Fayette County near La Grange.  There are two large pieces of property next to it where any actual wells would be drilled on.  I am just a very small part of the pool. 

Edited by kevwun
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2 hours ago, kevwun said:

It is in Fayette County near La Grange.  There are two large pieces of property next to it where any actual wells would be drilled on.  I am just a very small part of the pool. 

Eagleford or Chalk?  Do you know?

Personally I’d tell them to get fucked, but I’m biased. Bad guys. 

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DCA_HORN

DCA_HORN 725

Posted
Posted
3 hours ago, Rex Kramer said:

Random question but does anyone know which financial institutions would either a) help finance the purchase of a directional driller * or b) finance leveraged buyout of same?

* As described to me by a non energy guy, this group lays infrastructure pipe for midstream and midstream-esque ventures and is not a contract driller for E&P. I’m sure I lost something in translation, because this isn’t my bag and it certainly isn’t my friend’s. I have a very focused practice - E&P and midstream company clients. Purchase price would be $10-$20MM. Current cash flow is about $4.5MM and projected to be $6.5MM in ‘18. 

Maybe GSO or Angelo Gordon and the like?

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Neonmoon

Neonmoon 38130

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2 hours ago, kevwun said:

It is in Fayette County near La Grange.  There are two large pieces of property next to it where any actual wells would be drilled on.  I am just a very small part of the pool. 

https://eaglefordshale.com/counties/fayette-county-tx/

from that general list of Operators, Apache is not a bad choice. 

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kevwun

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Posted (edited)
1 hour ago, Rex Kramer said:

Eagleford or Chalk?  Do you know?

Personally I’d tell them to get fucked, but I’m biased. Bad guys. 

I think it's Chalk.  At least the previous well that was drilled 25 or so years ago next door was in the Austin Chalk.  I think the Eagleford wells have mainly been in the southern end of the county.  My land is in the northern end.

Edited by kevwun
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Austinvines

Austinvines 318

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I am totally ignorant about most O&G issues but I am needing to learn on the fly a bit so I appreciate any handholding/explanation anyone is willing to give,.

Can someone explain to me how a midstream NGL facility makes money and how they get their gas to process? Is the plant held captive to what pipeline company/gathering system it is hooked into? 

 

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gecko

gecko 1104

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Interesting article about how hiring has heated up again...

https://www.zerohedge.com/news/2018-06-08/its-crazy-texas-roiled-unprecedented-labor-shortage-shale-industry-hires-just-about

A friend of mine’s son just graduated from Tceh with a geology degree. He wants to get his hands dirty with a service company before going back for his masters in a couple years.

Any advice for the kid, other than next time don’t go to Tceh? He’s looking to start at the bottom...

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Archer

Archer 474

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19 hours ago, gecko said:

Interesting article about how hiring has heated up again...

https://www.zerohedge.com/news/2018-06-08/its-crazy-texas-roiled-unprecedented-labor-shortage-shale-industry-hires-just-about

A friend of mine’s son just graduated from Tceh with a geology degree. He wants to get his hands dirty with a service company before going back for his masters in a couple years.

Any advice for the kid, other than next time don’t go to Tceh? He’s looking to start at the bottom...

A mud logging job would probably have the most direct tie in to future geology work. A directional driller or wireline logger would also have some carry over. 

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Eastwood

Eastwood 4394

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What you want to happen - Take one of the high paying field jobs. Don’t buy the new truck or boat. Save his money . go back for masters 
what will really happen? New truck and skanks 


This.

I can't stress enough from my own personal experience that he needs to pocket 50 - 75% of what he makes out there as a young, single man with no kids. There will be plenty of time for the boat and Ford Raptor when he's in his mid to late 30s and done with his masters and just wrapping up his first deal that is giving him an override or shares. Those guys that go out there and spend the bulk of their first gig's money (me) end up working a job they end up hating trying to make it to the next cycle (also me). Thankfully I had learned my lesson, so when the second 2000s boom came, I was ready and managed it well. Second bust around went much better. Now I'm laying a foundation that I should have laid years ago at the expense of about 5 years of net worth growth that could have been salvaged if I had exercised more discipline as a man in my early 20's.
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1 hour ago, T’Boo Ted Marshall said:

That sounds boring.

That does sound boring. You know what else is boring?  You and me. Trust me, we’re boring. 

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bolverk

bolverk 30231

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What say the surly awl barons?

Quote

 

The Biggest U.S. Oil Patch Is Near Its Limit

The biggest U.S. shale region will have to shut wells within four months because there aren’t enough pipelines to get the oil to customers, the head of one of the industry’s largest producers said.

The worsening bottleneck in the Permian region that straddles west Texas and New Mexico offers an unexpected fillip to OPEC and other oil producers outside the U.S., who’ve seen rampant production from America’s shale producers grab market share.

"We will reach capacity in the next 3 to 4 months," Scott Sheffield, the chairman of Pioneer Natural Resources Co. said in an interview at an OPEC conference in Vienna. "Some companies will have to shut in production, some companies will move rigs away, and some companies will be able to continue growing because they have firm transportation."

His comments are the strongest indication yet that the growth in the red-hot shale region is about to slow down soon due to a lack of pipeline capacity. The problem has grown so bad that oil companies have been forced to load crude on to trucks and drive it hundreds of miles to pipelines in other parts of the state.

The Permian is growing at 800,0000 barrels a day annually and production currently stands at 3.3 million barrels a day, said Sheffield, who first drilled wells in the region in 1979 and is considered one of the architects of the shale revolution. Total pipeline capacity is 3.6 million barrels, so the region will reach capacity in the next three to four months and the bottleneck isn’t likely to ease for at least a year, he added.

Permian production could remain flat for the next year because of pipeline restraints, Sheffield told a session of the OPEC conference.

"The market has been assuming a straight line production growth from the US but infrastructure constraints mean that’s clearly not going to be the case," said Amrita Sen, chief oil analyst at consultant Energy Aspects Ltd. "At a time when outages are rising the US is not going to fill the gap either."

The lack of pipeline capacity will continue to cause severe dislocation in U.S. oil markets, Sheffield said. Benchmark West Texas Intermediate crude at Midland in the Permian is likely to trade at a $25-a-barrel discount to price at the industry’s hub in Cushing, Oklahoma, he said.

The Permian region is accounting for nearly half of the growth in U.S. oil production. America pumped almost 10.5 million barrels a day in March, up 1.4 million barrels a day from a year, according to government data. The annual growth rate is larger than the production of OPEC nations such as Libya.

The warning about shut-ins comes as some small companies move oil rigs away from the Permian into other shale basins that still have pipeline capacity. Oil services companies have also started to reduce the number of fracking crews they offer to drillers.

Pipelines are being built to get more oil out of the Permian, but shipments are likely to be constrained until at least 2019, Sheffield said.

 

 

https://www.bloomberg.com/news/articles/2018-06-20/shale-giant-says-permian-oil-faces-shut-ins-on-pipeline-shortage

 

Edited by bolverk
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52-80

52-80 19379

Posted
Posted
On 6/8/2018 at 10:29 PM, gecko said:

Interesting article about how hiring has heated up again...

https://www.zerohedge.com/news/2018-06-08/its-crazy-texas-roiled-unprecedented-labor-shortage-shale-industry-hires-just-about

A friend of mine’s son just graduated from Tceh with a geology degree. He wants to get his hands dirty with a service company before going back for his masters in a couple years.

Any advice for the kid, other than next time don’t go to Tceh? He’s looking to start at the bottom...

i moved cities, states, and countries often when i was young.  had a legit reason for not buying a place.  that said, if there was 1 advice i could give to my younger self:  buy a fucking place.  

rent it out if not occupying it.  every place ive lived in and every prospective property i considered has ballooned in value.

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Neonmoon

Neonmoon 38130

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http://wesa.fm/post/studies-show-groundwater-holding-own-against-drilling-boom#stream/0

Studies Show Groundwater Holding Own Against Drilling Boom

Spoiler

 

New research suggests drinking water supplies in Pennsylvania have shown resilience in the face of a drilling boom that has turned swaths of countryside into a major production zone for natural gas.

Energy companies have drilled more than 11,000 wells since arriving en masse in 2008, making Pennsylvania the nation's No. 2 gas-producing state after Texas. Residents who live near the gas wells, along with environmental groups and some scientists, have long worried about air and water pollution.

Two new studies that looked at groundwater chemistry did not find much of an impact from horizontal drilling and hydraulic fracturing — or fracking — the techniques that allow energy companies to extract huge volumes of oil and gas from shale rock deep underground. The results suggest that, as a whole, groundwater supplies appear to have held their own against the energy industry's exploitation of the Marcellus Shale, a rock layer more than a mile underground that holds the nation's largest reservoir of natural gas.

In a study published Monday, a team from Yale University installed eight water wells and drew samples every few weeks for two years — during which seven natural gas wells were drilled and fracked nearby — to measure changes in methane levels at various stages of natural gas production. Methane is not toxic to humans, but at high concentrations it can lead to asphyxiation or cause an explosion.

Researchers found that methane spiked in some water wells but attributed rising methane levels to natural variability, not drilling and fracking. Their findings were published in the journal Proceedings of the National Academy of Sciences.

Natural variability "is potentially a lot greater than previously understood," said Yale University hydrologist James Saiers, a study co-author. That's important, he said, because residential water wells are typically tested only a few times before and after the start of drilling. "Before-and-after sampling might not be sufficient and might lead to misattribution of sources of methane," Saiers said.

Rob Jackson, a Stanford University scientist who has studied the impact of drilling on groundwater, challenged the researchers' assertion that elevated methane levels in the water wells had nothing to do with natural gas development, though he agreed the gas found in the water did not come from the Marcellus Shale.

"The simplest explanation is that something associated with drilling and hydraulic fracturing caused shallower gas to migrate into the monitored aquifers," Jackson, who was not involved in the study, said via email.

Penn State University scientists, meanwhile, obtained an enormous trove of data from the Pennsylvania Department of Environmental Protection — 11,000 groundwater samples collected since 2010 — and, using what they said was a novel data-mining technique, concluded that water quality is either unchanged or even slightly improved for substances like barium, arsenic and iron.

The authors found slightly elevated concentrations of methane near only seven of 1,385 shale wells in the study area.

"It really doesn't look like the groundwater chemistry has gotten worse, even though we've had this huge number of shale gas wells drilled," said Susan Brantley, a Penn State geoscientist and study co-author.

Their research , which also looked at a small number of water samples taken before 1990, appeared in the journal Environmental Science & Technology.

Allen Robinson, a Carnegie Mellon University engineering professor who wasn't involved in the study, said the large sample size represented an improvement over earlier studies, but he questioned whether researchers' focus on just one county — Bradford County, one of the state's drilling hotspots — might have skewed the results.

"Overall the data demonstrate that there is certainly not a crisis around ground water contamination and unconventional oil and gas activity. That is good news," he said via email. "However, it does document some contamination. Is 'rare' contamination around a few percent of wells acceptable? That is a policy question."

Environmental regulators have held drillers liable for tainting more than 300 residential water supplies statewide over the years, while homeowner lawsuits have accused gas companies of polluting the water with methane, heavy metals and toxic drilling chemicals. Older research linked faulty gas wells to tainted water.

The latest studies "reflect our industry's deep commitment to environmental and groundwater protection," David Spigelmyer, president of the Marcellus Shale Coalition, an industry group, said in a statement.


 

 

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