There is good news and bad news.\u00a0 The good news is that wells decline very rapidly and the glut of oil production will evaporate rather quickly.\u00a0 The bad news is that there is so much associated gas I suspect T. Boone Pickens (who is in his 80s) comment that he expects to see $6 gas in his lifetime\u2026well, how long is his actuary table give him?\u00a0 (if you didn\u2019t see the video\u2026)<\/p>\n
http:\/\/www.cnbc.com\/id\/102518977<\/a><\/p>\n The biz is in trouble. The service companies and drillers are going under and the majors are standing back. These companies are willing to simply keep operational with the lowest prices they can afford, but no one is biting.\u00a0 So look for many small wireline, mud, tool, workover services and drilling companies fold up.\u00a0 That means when production declines, ramping back up is going to be problematic.\u00a0 Those energy \u201cbanks\u201d are not going to want a piece of this. They are getting burned and don\u2019t want to be the not so proud owners of a bunch of stacked out drill rigs.<\/p>\n The layoffs are not just in the field. There are already hundreds, if not thousands, of geologists and engineers being laid off.\u00a0 And the young ones are likely to have a car payment and a house payment and may have some trouble getting out from under debt to even take on a new job, if they can find one in a related field, like hydrology or government service.<\/p>\n It was brought to my attention that Bloomberg ran an article (20 May 15) about how small companies were going bankrupt and leaving mineral owners unpaid for their mineral.\u00a0 They are robbed.\u00a0 That company can reorganize and go on drilling and producing. The mineral owner?\u00a0 His or her interest may be lost forever and as a wasting asset, is basically stolen by the incompetence of the individual or company filing bankruptcy.<\/p>\n http:\/\/www.bloomberg.com\/news\/articles\/2015-05-21\/-shale-ionaires-suffering-from-wave-of-bankrupt-oil-drillers<\/a><\/p>\n We\u2019ve seen it all. It was obvious. Art Berman \u2026.<\/p>\n http:\/\/oilprice.com\/Energy\/Natural-Gas\/Natural-Gas-Prices-To-Crash-Unless-Rig-Count-Falls-Fast.html<\/a><\/p>\n \u2026 looks like a genius after being ridiculed by the industry.\u00a0 But remember just because Cassandra was right doesn\u2019t mean she was liked.\u00a0 But even the Greek gods will not stop this crash.<\/p>\n <\/p>\n <\/p>\n <\/p>\n","protected":false},"excerpt":{"rendered":" There is good news and bad news.\u00a0 The good news is that wells decline very rapidly and the glut of oil production will evaporate rather quickly.\u00a0 The bad news is that there is so much associated gas I suspect T. Boone Pickens (who is in his 80s) comment that he expects to see $6 gas in his lifetime\u2026well,\u2026 Read More »<\/a><\/span><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/www.roxnoil.com\/wpadmin\/index.php\/wp-json\/wp\/v2\/posts\/1","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.roxnoil.com\/wpadmin\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.roxnoil.com\/wpadmin\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.roxnoil.com\/wpadmin\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.roxnoil.com\/wpadmin\/index.php\/wp-json\/wp\/v2\/comments?post=1"}],"version-history":[{"count":3,"href":"https:\/\/www.roxnoil.com\/wpadmin\/index.php\/wp-json\/wp\/v2\/posts\/1\/revisions"}],"predecessor-version":[{"id":16,"href":"https:\/\/www.roxnoil.com\/wpadmin\/index.php\/wp-json\/wp\/v2\/posts\/1\/revisions\/16"}],"wp:attachment":[{"href":"https:\/\/www.roxnoil.com\/wpadmin\/index.php\/wp-json\/wp\/v2\/media?parent=1"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.roxnoil.com\/wpadmin\/index.php\/wp-json\/wp\/v2\/categories?post=1"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.roxnoil.com\/wpadmin\/index.php\/wp-json\/wp\/v2\/tags?post=1"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}