Monday, June 20, 2016

How bad is it?

Update for 6/17/2016. May be getting better. Rig count up for 3 weeks, oil price up and steady near $50, and first significant exploration geology jobs posted in Houston last week.


Updated through 21 May 2016

Bankruptcies: SandRidge, Halcon, Energy XXI, Aztec Oil & Gas, Breitburn Energy Partners LP, Penn Virginia Corp., Linn Energy, etc... altogether 27 companies field for bankruptcy in April 2016 and 69 since the beginning of 2016. Compare that to the 42 that filed in 2015 (source).

Layoffs: Estimated at 350,000 worldwide (source)

To paraphrase SPE 2016 President Nathan Meehan: If we include cable tool rigs, total US activity has exceeded 500 rigs since Abraham Lincoln was the US President. The current (5/20/2016) North American rig count stands at 404, making it a truly historic low. 



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Updated through 13 Mar 2016


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Updated through 19 Feb 2016

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Updated through 8 Jan 2016


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This graph captures the current deep decline in world oil price (WTI, but Brent would be similar), North American natural gas price and North American rig count. The rig count is a macro measure of economic activity in the hydrocarbon energy sector, the center of an ecosystem of exploration and production business activity. The rig count still falling after 12 months may indicate the quickest possible recovery could be 12-18 months away.

Tuesday, May 31, 2016

EAGE 2016 Vienna

With EAGE President and longtime friend  Mohammed Al Faraj