WHY OIL IS MORE LIKELY TO TEST $50 THAN $100 AGAIN NEXT YEAR - GoHaynesvilleShale.com2024-03-29T05:20:07Zhttps://gohaynesvilleshale.com/forum/topics/why-oil-is-more-likely-to-test-50-than-100-again-next-year?commentId=2117179%3AComment%3A3427659&feed=yes&xn_auth=noNothing new about exporting o…tag:gohaynesvilleshale.com,2014-11-21:2117179:Comment:34303522014-11-21T17:11:52.994ZWilliam C. Morrisonhttps://gohaynesvilleshale.com/profile/WilliamCMorrison
<p>Nothing new about exporting oil from the North Slope of Alaska, been doing it for years.</p>
<p>If the Saudi's cut back on production or return to old pricing structures the price of crude oil will rise. The market as referred to in the opening of the article is very efficient.</p>
<p>I suspect high risk endeavors like TMS will slow down or stop. The Permian Basin in Texas is going great guns with slick fracking. So I think we have reached a plateau in pricing for a while. It will shake…</p>
<p>Nothing new about exporting oil from the North Slope of Alaska, been doing it for years.</p>
<p>If the Saudi's cut back on production or return to old pricing structures the price of crude oil will rise. The market as referred to in the opening of the article is very efficient.</p>
<p>I suspect high risk endeavors like TMS will slow down or stop. The Permian Basin in Texas is going great guns with slick fracking. So I think we have reached a plateau in pricing for a while. It will shake out the unstable oil companies. The big guys like XOM will do okay as they are in the total side of the business and make money on refining as well as exploration. And I think the Russians will take a back seat for a while because their economy, totally crude based will suffer.</p>
<p>No more cheap oil, but there is a glut and that don't help matters at all.</p> Halliburton, Baker Hughes mer…tag:gohaynesvilleshale.com,2014-11-20:2117179:Comment:34301082014-11-20T15:20:30.270ZSkip Peel - Mineral Consultanthttps://gohaynesvilleshale.com/profile/ilandman
<p><b>Halliburton, Baker Hughes merger could reduce producers' leverage</b></p>
<p>Nov 18, 2014, 5:12pm EST Updated: Nov 19, 2014, 8:31am EST</p>
<p>Aaron M. Sprecher | Bloomberg</p>
<p>Halliburton Co. signage is displayed on the Dual-Fuel Q10 Pumping Unit (fracturing pump) outside of the company's facility in Houston, Texas.</p>
<p>The marriage of oilfield services giants <b>Halliburton</b> and <b>Baker Hughes</b> may help insulate the two from declining oil prices and competition from rival…</p>
<p><b>Halliburton, Baker Hughes merger could reduce producers' leverage</b></p>
<p>Nov 18, 2014, 5:12pm EST Updated: Nov 19, 2014, 8:31am EST</p>
<p>Aaron M. Sprecher | Bloomberg</p>
<p>Halliburton Co. signage is displayed on the Dual-Fuel Q10 Pumping Unit (fracturing pump) outside of the company's facility in Houston, Texas.</p>
<p>The marriage of oilfield services giants <b>Halliburton</b> and <b>Baker Hughes</b> may help insulate the two from declining oil prices and competition from rival <b>Schlumberger</b> Ltd., but it also may reduce the leverage producers have in negotiating service contracts.</p>
<p>"I would suggest the smaller producers can become frustrated after losing what semblance of leverage they thought they had for negotiating field services," said <a href="http://www.bizjournals.com/pittsburgh/search/results?q=David%20J.%20Marks">David J. Marks</a>, a consultant and fuels manager for the Beech Hollow Power Project, a proposed natural gas-fired power plant in Washington County.</p>
<p>"Here now may be opportunities for consulting companies to create real value by brokering service contracts for groups of small local producers," he said.</p>
<p>"Frankly, the small producers have been the backbone of the natural gas industry here in western Pennsylvania for many years. I would like to see them remain viable," he said.</p>
<p>Halliburton is the world's second-largest oilfield services company, followed by Baker Hughes, which is No. 3. The two announced Monday that they would merge through a deal in which Halliburton will acquire all of Baker Hughes' outstanding shares. The stock and cash deal is valued at $34.6 billion, or $78.62 per Baker Hughes share.</p>
<p>Based on 2013 results, the combined company would have revenue of $51.8 billion, more than 136,000 employees and operations in more than 80 countries.</p>
<p>Both companies have operations in southwestern Pennsylvania.</p>
<p><a href="http://www.bizjournals.com/pittsburgh/search/results?q=David%20Wallace">David Wallace</a>, co-founder and past CEO of the former Indiana County-based <b>Superior Well Services</b>, said he's not so sure the merger will raise the floor on prices.</p>
<p>He said that there is still excess equipment floating around, and barring a significant uptick in drilling, that's not likely to change in the short term.</p>
<p>Superior was sold in 2010 to <b>Nabors</b> Ltd., which is now merging it with C&J Energy Services.</p> Oil slips on U.S. crude inven…tag:gohaynesvilleshale.com,2014-11-19:2117179:Comment:34294862014-11-19T16:10:30.659ZSkip Peel - Mineral Consultanthttps://gohaynesvilleshale.com/profile/ilandman
<p><b>Oil slips on U.S. crude inventory rise</b></p>
<p>Reuters with CNBC.com staff November 19, 2014</p>
<p>Oil prices slipped lower after data from the U.S. Department of Energy's Energy Information Administration showed that crude supplies unexpectedly rose by 2.6 million barrels last week.</p>
<p>A Reuters poll of seven analysts had forecast crude stocks to fall 800,000 barrels in the week through November 14.</p>
<p><a href="http://data.cnbc.com/quotes/clcv1" target="_self">U.S.…</a></p>
<p><b>Oil slips on U.S. crude inventory rise</b></p>
<p>Reuters with CNBC.com staff November 19, 2014</p>
<p>Oil prices slipped lower after data from the U.S. Department of Energy's Energy Information Administration showed that crude supplies unexpectedly rose by 2.6 million barrels last week.</p>
<p>A Reuters poll of seven analysts had forecast crude stocks to fall 800,000 barrels in the week through November 14.</p>
<p><a href="http://data.cnbc.com/quotes/clcv1" target="_self">U.S. crude</a> was down 52 cents at $74.09 a barrel shortly after 10:30 a.m. EDT. The U.S. crude futures contract closed $1.03 lower on Tuesday.</p> As the USA is now the largest…tag:gohaynesvilleshale.com,2014-11-19:2117179:Comment:34286202014-11-19T03:53:58.600Ztchttps://gohaynesvilleshale.com/profile/tc
<p>As the USA is now the largest oil producer, I am sure that the Saudis think it is now time for the US to cut production if they want higher prices.</p>
<p>As the USA is now the largest oil producer, I am sure that the Saudis think it is now time for the US to cut production if they want higher prices.</p> I don't think we should expec…tag:gohaynesvilleshale.com,2014-11-19:2117179:Comment:34283292014-11-19T00:59:28.533ZSkip Peel - Mineral Consultanthttps://gohaynesvilleshale.com/profile/ilandman
<p>I don't think we should expect the Saudis to blink. And I don't expect them to bail out their OPEC brethren.</p>
<p>I don't think we should expect the Saudis to blink. And I don't expect them to bail out their OPEC brethren.</p> Yes, if they can undercut oth…tag:gohaynesvilleshale.com,2014-11-19:2117179:Comment:34283252014-11-19T00:50:16.716ZP.G.https://gohaynesvilleshale.com/profile/PG
<p>Yes, if they can undercut other's production costs, they'll still get all the business. <br/>Less on something is better than more on nothing.</p>
<p>Yes, if they can undercut other's production costs, they'll still get all the business. <br/>Less on something is better than more on nothing.</p> Excerpt from A Different Kind…tag:gohaynesvilleshale.com,2014-11-19:2117179:Comment:34284302014-11-19T00:21:16.561ZSkip Peel - Mineral Consultanthttps://gohaynesvilleshale.com/profile/ilandman
<h1>Excerpt from A Different Kind of Oil Crisis newsweek.com</h1>
<p>By <a href="http://www.newsweek.com/authors/leah-mcgrath-goodman" rel="nofollow">Leah McGrath Goodman</a> / November 18, 2014 2:06 PM EST</p>
<p>Link to full artiacle: <a href="http://www.newsweek.com/2014/11/28/different-kind-oil-crisis-285331.html" rel="nofollow" target="_blank">http://www.newsweek.com/2014/11/28/different-kind-oil-crisis-285331...</a></p>
<p>“Changes in the forecast of Saudi Arabian oil production are…</p>
<h1>Excerpt from A Different Kind of Oil Crisis newsweek.com</h1>
<p>By <a rel="nofollow" href="http://www.newsweek.com/authors/leah-mcgrath-goodman">Leah McGrath Goodman</a> / November 18, 2014 2:06 PM EST</p>
<p>Link to full artiacle: <a rel="nofollow" href="http://www.newsweek.com/2014/11/28/different-kind-oil-crisis-285331.html" target="_blank">http://www.newsweek.com/2014/11/28/different-kind-oil-crisis-285331...</a></p>
<p>“Changes in the forecast of Saudi Arabian oil production are crucial to the revised outlook and a major source of uncertainty in the year ahead,” the U.S. Department of Energy’s statistics branch, the Energy Information Administration (EIA), stated in this month’s outlook.</p>
<p>Market observers had theorized that the world’s largest oil exporter may trim exports as a way of propping up oil prices, but after Saudi Arabia recently cut the price it’s charging U.S. clients, that seems less likely.</p>
<p>“Saudi Arabia’s No. 1 priority is they don’t want to lose their market share,” says Luay al-Khatteeb, a fellow at the Brookings Doha Center, an offshoot of the Washington-based public policy organization.</p>
<p>Taking that cue, the EIA recently revised upward its estimate of Saudi oil output, putting it at above 9 million barrels a day for 2015. Of course, keeping oil output high will only reduce how much Saudi Arabia makes on the barrel, but unlike Russia, Saudi Arabia can take it.</p>
<p><strong>“With some of the lowest cost-per-barrel production in the world, and cash reserves approaching $1 trillion, Saudi Arabia is better positioned to withstand a lower oil price than other producers and can make up some of the lost revenue from lower prices by maintaining supply volumes,” the EIA said.</strong></p> Halliburton-Baker Hughes Deal…tag:gohaynesvilleshale.com,2014-11-18:2117179:Comment:34285892014-11-18T22:55:01.167ZSkip Peel - Mineral Consultanthttps://gohaynesvilleshale.com/profile/ilandman
<p><b>Halliburton-Baker Hughes Deal Will Only Prolong The Shale Drilling Downturn</b></p>
<h5><b>forbes.com</b> <b> </b>11/17/2014 @ 10:52AM</h5>
<p>After a week of negotiations that on Friday turned into a must-see soap opera, <a href="http://www.forbes.com/companies/halliburton/" rel="nofollow">Halliburton</a> <a href="http://www.forbes.com/companies/halliburton/" rel="nofollow">HAL -1.4%</a> is buying <a href="http://www.forbes.com/companies/baker-hughes/" rel="nofollow">Baker Hughes…</a></p>
<p><b>Halliburton-Baker Hughes Deal Will Only Prolong The Shale Drilling Downturn</b></p>
<h5><b>forbes.com</b> <b> </b>11/17/2014 @ 10:52AM</h5>
<p>After a week of negotiations that on Friday turned into a must-see soap opera, <a rel="nofollow" href="http://www.forbes.com/companies/halliburton/">Halliburton</a> <a rel="nofollow" href="http://www.forbes.com/companies/halliburton/">HAL -1.4%</a> is buying <a rel="nofollow" href="http://www.forbes.com/companies/baker-hughes/">Baker Hughes</a> <a rel="nofollow" href="http://www.forbes.com/companies/baker-hughes/">BHI -2.58%</a> in <a rel="nofollow" href="http://www.halliburton.com/en-US/default.page" target="_blank">a deal that values</a> Baker at an enterprise value of $38 billion, including $34.6 billion in equity value, a 41% premium. Baker shareholders will get 1.12 Halliburton shares plus $19 in cash for each share. The combined company will boast revenues of more than $52 billion, with 136,000 employees. The deal is expected to close in mid 2015, and Halliburton CEO David Lesar forecasts $2 billion in annual cost synergies and cash flow accretion to Halliburton by the end of the first year.</p>
<p>It was October 13, when Halliburton made an inital overture to Baker Hughes. Talks got testy on Nov. 4 when Baker CEO Martin Craigshead objected to pressure from Halliburton to get a deal done. And they got nasty last Friday, when Halliburton threatened to wage a proxy battle and replace Baker’s board with directors more amenable to a deal. (For more, The <a rel="nofollow" href="http://www.forbes.com/wall-street/">Wall Street</a> Journal has covered this story <a rel="nofollow" href="http://online.wsj.com/articles/oil-price-slump-spurs-halliburton-baker-hughes-talks-1416000634" target="_blank">here</a>, <a rel="nofollow" href="http://online.wsj.com/articles/halliburton-baker-hughes-sparred-over-pace-of-deal-talks-1416092991" target="_blank">here</a> and <a rel="nofollow" href="http://online.wsj.com/articles/halliburton-ceo-dave-lesar-knows-controversy-1416075123" target="_blank">here</a>.) Have Craigshead and Lesar now kissed and made up? We’ll see as the deal unfolds in the months to come.</p>
<p>Thus Halliburton + Baker Hughes becomes the first megadeal in what promises to be a wave of consolidation in the oilpatch as plunging crude oil prices bring about an abrupt popping of the shale bubble. So what other companies are now in play? National-Oilwell Varco, <a rel="nofollow" href="http://www.forbes.com/companies/weatherford-international/">Weatherford International</a> , <a rel="nofollow" href="http://www.forbes.com/companies/cameron-international/">Cameron International</a> <a rel="nofollow" href="http://www.forbes.com/companies/cameron-international/">CAM +0.71%</a>, <a rel="nofollow" href="http://www.forbes.com/companies/fmc-technologies/">FMC Technologies</a> <a rel="nofollow" href="http://www.forbes.com/companies/fmc-technologies/">FTI +0.11%</a>, could all be in play for M&A. Potential shoppers outside the core of the industry include <a rel="nofollow" href="http://www.forbes.com/companies/general-electric/">General Electric</a> <a rel="nofollow" href="http://www.forbes.com/companies/general-electric/">GE +1.5%</a>, which has been moving aggressively into the oil services business with acquisitions including Hydril, Vetco-Gray and a compression business of Cameron.</p>
<p><strong>Ironically, although this deal will be good for the competitive position of oilfield service companies, it won’t do much, if anything, to help the Exploration & Production companies that take on the risks and make the decisions. Usually when oil prices drop and drilling budgets get dialed back (as they are now), the E&P guys can lean on the service providers for better deals. Baker Hughes, which has perennially been less profitable than Halliburton or <a rel="nofollow" href="http://www.forbes.com/companies/schlumberger/">Schlumberger</a> <a rel="nofollow" href="http://www.forbes.com/companies/schlumberger/">SLB -0.37%</a>, would have been especially susceptible to arm twisting. But not anymore.</strong></p>
<p><strong>All else equal, by helping prop up marginal pricing for fracking services, this deal will drag out the downturn in shale drilling.</strong></p>
<p>Link to full article: <a rel="nofollow" href="http://www.forbes.com/sites/christopherhelman/2014/11/17/halliburton-baker-hughes-deal-will-only-prolong-the-shale-drilling-downturn/" target="_blank">http://www.forbes.com/sites/christopherhelman/2014/11/17/halliburto...</a></p> Bakken wells aren't TMS wells…tag:gohaynesvilleshale.com,2014-11-18:2117179:Comment:34280192014-11-18T13:23:33.013ZSkip Peel - Mineral Consultanthttps://gohaynesvilleshale.com/profile/ilandman
<p>Bakken wells aren't TMS wells. That would be an apples to oranges comparison.</p>
<p>Bakken wells aren't TMS wells. That would be an apples to oranges comparison.</p> Nov 12th Bakken Magazine Arti…tag:gohaynesvilleshale.com,2014-11-18:2117179:Comment:34279252014-11-18T08:55:21.036ZDTruckshttps://gohaynesvilleshale.com/profile/DTrucks
<p>Nov 12th Bakken Magazine Article: </p>
<p>...could decrease well costs by $1.3 million to $2.6 million on a $6.5 million well. </p>
<p><a rel="nofollow" href="http://www.thebakken.com/articles/874/searching-for-unconventional-savings" target="_blank">http://www.thebakken.com/articles/874/searching-for-unconventional-...</a></p>
<p>Nov 12th Bakken Magazine Article: </p>
<p>...could decrease well costs by $1.3 million to $2.6 million on a $6.5 million well. </p>
<p><a rel="nofollow" href="http://www.thebakken.com/articles/874/searching-for-unconventional-savings" target="_blank">http://www.thebakken.com/articles/874/searching-for-unconventional-...</a></p>