Replies to This Discussion

Permalink Reply by Randy on December 30, 2008 at 13:52

It's rough right now. Always rough in 4th quarter, much more so because oil & gas contracts have lost so much of their (perceived) value.

For landmen that want to stay in the business they will likely be able to if they work to get certifications and continue learning. Others will wash out, which is probably necessary.

Randy

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Permalink Reply by Randy on February 13, 2009 at 17:01

I don't quite understand why you are so abrasive? I was simply trying to share my impressions with the nice woman who asked a totally legitimate question.

Do you feel like I was giving bad information? Or being rude or obnoxious?

If not, then why are you talking at me like that Lee?

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Permalink Reply by Randy on February 13, 2009 at 17:20

I've got a good friend that has had his contract pulled 3 times in the last 4 months. Every time he found a job within a week. He only has 3 years of experience, he's probably not the smartest guy on the block. He didn't just sit at home and wait, he went to Dallas, Houston, Shreveport, etc and banged on doors.

I'm happy I'm still working, and I have known for 6 months that tomorrow could be the last day. Sure I feel bad for everyone who wasn't prepared for a downturn, none of us really saw it coming (not at this rate anyway).

I don't agree with the 20 year assessment, but that's because fossil fuels are a limited resource. The credit markets will loosen up, energy prices will stabilize at a reasonable rate (not $150/bbl), and it'll be ok. I would agree with you that it won't be like it has been the last few years, where any guy off the street is a landman. Those days are gone, I'd agree.

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Permalink Reply by Dion Warr, CPL on December 30, 2008 at 14:01

Neo:

Recommend that he get some skills, or ally and apprentice himself with a oil and gas broker with a track record doing oil and gas abstracts, due diligence, title curative, and/or production reporting and/or research (the last being particularly important in LA).

The more skills and education that you have, the easier it is to stay busy. If he just wants to be a lease hound, it's going to be rough going for a while.

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Permalink Reply by Snake Stewart on December 30, 2008 at 14:12

Hey Randy,
Hope all is going well for you and yours.

I agree totaly with you Oil Neophyte, the rush is over.

I would imagine that with the Barnett play and the Haynesville running one right behind the other in terms of peak interests, there was probably a huge excess of landmen/women through the beginning to the downturn in leasing activity. From what I understand, a lot of former timber buyers were doing field work for these O&G's until they could get people trained to do the job. There just werent enough to spread around. Then by the time word got out and leasing slowed, they no longer needed the new hires that they had sent in early on. Even when they start leasing again it wont be nearly a fast paced because 1) There isnt as much land still available 2)The land that is available will need more seasoned fellows to aquire I believe. Sure there will be some still in a big hurry to lease but the initial blitzkrieg is over.

Before all these shale plays started, it is estimated that only 12% of land in the continental U.S. was even available for lease. 75%-80% of that land is in the Southern portion of the country. Before many more years or plays , and with most land being HBP once aquired by O&G's,I really dont see the field growing any bigger. Just my thoughts.

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Permalink Reply by intrepid on December 30, 2008 at 15:09

It's hard out there for a pimp. (just kidding)

Landmen jobs have always been boom or bust from my observation.

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Permalink Reply by Two Dogs, Pirate on December 30, 2008 at 16:03

If your nephew wants to stay in the field he will need to use this down time to learn as much as he can about abstracting and title curative work. Things may come back in a short time but they may not. 1998 started out as a bad year for O&G but the tech bubble was on a roll, lots of cell towers and fiberoptic projects going on. Today we don't have that to fall back on so many of the old hands are even out of work. The old hands know that this is a roller coaster job, your nephew might not understand this. Now may be a good time for him to find another line of work. If he still wants to stay he may find some work in pipeline or electrical right-of-way, or he may could find something in siezmic permitting but the pay may not be as good. Good luck and have a Happy New Year.

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Permalink Reply by HBP on December 31, 2008 at 3:10

I agree with those who have said this is a time to learn as much as possible and apprentice if he can. He will have to make the main choice now about whether this is a career he wants, or was it just a quick paycheck. IF it is a career, I think the future may be bright in the long run. This is because the boom and bust nature causes experience gaps. I think most seasoned guys will agree with me that there are alot of experienced hands out there that are retirement age - then a big gap with some experienced guys - then younger ones (some experienced, some just in it for paycheck).

The young ones that jumped in this boom will be weeded through and the most valuable will continue to work. Even if you are out of work for a while, brokers eventually want and need young guys that WANT to learn and see this as a career. The best way to show that is to study be active now, even when out of work. Start by working toward the "RL" designation with AAPL, and joining his local association.

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Permalink Reply by Randy on December 31, 2008 at 3:33

I've had a lot of calls and little whispers of people gearing up for projects that will be starting mid Jan early Feb. Not necessarily Haynesville projects of course.

One thing I didn't see mentioned... your nephew will likely have to be open to doing some traveling if he wants to stay busy. You just can't make a career like this work and stay within 50 miles of your home forever.

R

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Permalink Reply by Dion Warr, CPL on December 31, 2008 at 6:19

Good point Randy. Much like baseball and softball, fresh legs commonly get sent to the outfield. Be prepared to bring your traveling bag and keep your 'wheels' in good working order. Local and regional work is nice to have, but not always available.

Also, as HBP is saying, make the decision now whether this is a career, or a fun sideline for a while. If it's a career, commit: go get some knowledge and show your worth, if not experience yet, then by desire to excel.

Another unpleasant truth, but it doesn't look like we're there quite yet: be prepared to see and accept part-time work and be flexible in dayrate when things get slow. Much like the tortoise and the hare, in lean times, slow and steady (more or less constant work at a lower dayrate) generally comes out ahead of fast and furious in fits and spurts (holding for higher dayrate and sparse work).

My own personal advice: reward those (lead brokers and clients) that keep you consistently busy with loyalty, rather than hopping around chasing greener pastures at an extra $25 per day. Your reputation as a landman will improve tremendously for being a reliable and consistent hand for your broker and/or your client. When times improve, make hay while the sun shines, but never at the expense of those that got you through lean times.

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Permalink Reply by lanadan Ds3 on January 1, 2009 at 4:11

Hello Oilneo,
Just a couple of quick thoughts which may or may not be of interest to you folks -- but here goes anyway.
Three or four years ago my son in law started work in N/W La. for a pipeline, ROW, etc. company. He now supervises several crews in E/Texas and N/WLa and is making over $100k per year. He recently hired my orphan, red-headed step-child son (just joking) a few months ago as a member of one his crews. The kid (age27) is making $5k a month (high school only) which is MORE than I make as a school teacher with 3 college degrees and 34 years experience! OUCH!
Son in law told me the other day that his company has enough work lined up to keep him busy for the next 17 years! (his words) Maybe an option for you folks to learn and keep tv dinners in the micro. Good luck and may God bless.

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Permalink Reply by KAYBABY on February 13, 2009 at 11:01

Most of the "Landmen" that were recently hired then laid off were not Landmen in the true sense of the word.

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