Are the oil companies just are not drilling these days?
It totally depends upon the location. Drilling is picking up in areas where the operators can make money in the current economic environment.
You guys should a Podcast called Macrovoices. I’ve been listening to it a couple years, I guess. It is run by a hedge fund manager name Erik Townsend. Pretty technical at times, but they generally are on top of what is happening, and likely to happen next.
He is very into the oil sector, talking about it on all his podcasts. For the last few months, he has been saying that investment in drilling is slowing, as the sector had been out of favor, and the usual big time investors have been convinced that oil is dead, and we’re all going to be driving electric cars. The podcasts are quick to point of the fallacy of this idea, and believe it could result in US oil shortages and peak prices in the future. It you do go look for the podcasts, he has been talking about this for about 3-4 months now.
Hence the name “hedge”. Take what those folks say like a grain of sand on a beach. Most VC & HF guys that thought they knew the O&G business are broke now.
The difference with this guy is he gets his info from a frequent guest named Art Berman, a petroleum geologist who’ spent 20 years with Amoco/BP, and 16 years of private consulting. He now contributes to Forbe’s, Bloomberg, FT, etc.
He obviously knows something about the oil industry after all these years.
He says what he is paid to say. That’s all.
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Starting to see the rigs pop up again now that oil prices are back up around Garvin and Stephens County.
In Beckham County, OK, I was told that drilling is on hold due to the lack of available rigs!
There are plenty of available rigs so somebody is pulling your leg.
There may actually be a shortage of people available to work on the rigs from what I hear. Too many people still wanting to be on the unemployment boat because the government are paying them more not to work! It’s disgusting! Making lazy people in our country!
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