North Central Texas | Recce7 - 6/8/2022 20:15
In the '14-'18 time frame KSA drove crude prices down forcing the small to midsize producers to sell to majors. The private American owned production companies were much more flexible, quick to spool up assets, and more willing to take risk.
I agree with everything you said but this part. Small and midsized producers were a generation that hadn't seen the ups and downs believing any fool that told them this time was different. No different than guys wanting to raise cattle in 14/15 or everyone wanting to get rich farming after 2012. Even the bankers were a new younger bunch who thought if they kept the money flowing, those newbies would get out of a hole if money kept flowing with cheap interest. Problem was reality set in. Oil and gas fields in disrepair and a bunch of uncompleted holes. The last couple of years has seen a push of new outfits being run by sons of seasoned oil men. They aren't chasing a fortune like the guys in 14 to 18 because daddy already made it. They are going in and fixing the problems the dreamers created. Get the house or Senate to flip, drilling will come back to life. These guys are making bank right now off of medium and big boy assets that were discarded. We have an unwillingness to invest with the current administration because of the unknowns with no checks or balances. Off shore tells the tale when 40% of the rigs have been tugged back to the port and stacked.
Only takes about a year here to drill it, frac it, pay for it, and choke it down. |
Feeder Cattle Market is on Fire
