Although some oilfield product/service markets have risen for 21 months in conjunction with the current upturn in US drilling activity, other segments have only recently begun to show signs of recovery. In this episode we compare and contrast the rates of recovery for drilling, completion, production, offshore, and equipment market segments.
Episode 52: Back to the Future?
Improvements in rig efficiency when drilling horizontal wells have saved money for operators but have also lowered drilling contractors’ revenue under traditional day-rate contracts. Richard and John discuss how rig owners are now looking at performance-based revenue models as a way to be paid more.
Episode 51: The Day the Oilfield Changed
In this episode we discuss how reflection seismic technology initiated the modern age of the petroleum industry and the role that German artillery in WWI played in developing seismography.
Episode 50: Questions We’re Hearing From the Field
How does ~$65 oil change the outlook for 2018 activity? What sectors are likely to get the most pricing improvement in 2018? In this podcast we answer some of the questions we’re hearing from the field like these.
Episode 49: Why the Average Lateral Doesn’t Exist
Lateral lengths in Q4 2017 averaged 7,700’, up 10% from the prior year. However, oddly, no operators drill 7,700’ laterals; instead, lateral lengths tend to either be 5,000’, 8,000’ or 10,000’ long, distances which have changed very little for several years. What is driving the increase in average lateral length and will this change going forward?
Episode 48: How Did 2017 Turn Out for 5 Markets and 5 Companies?
We compare 2017 with 2016 to look at the change in revenue in five equipment and service markets and discuss how this impacted revenue growth for five “bellwether” oilfield service companies.
Episode 47: The Day the Oilfield Changed
In 2018, we’re introducing The Day the Oilfield Changed, a series that reviews technical breakthroughs or commercial developments that fundamentally altered the nature of the upstream petroleum industry. In this initial episode we discuss how the creation of drilling “mud” enabled the discovery of the Spindletop field 117 years ago this week and initiated the Gulf Coast oil and gas industry.
Episode 46: Five Predictions for 2018
With 2017 now in the books, Richard and John start the new year with five bold predictions for the coming year. Will Brent oil futures exceed $65 at the end of 2018? What will North American frac sand demand total in 2018?
Episode 45: The Rising Cost of Failure (rerun)
We revisit one of our more popular episodes where we discuss how longer laterals are raising the stakes. In this look back, let's see where we were right and where we were wrong. Failure comes at an increasing cost and is changing how operators work with contractors. Richard & John dive deep into the psychology of "operator incentive" and how contractors will be responding as wells get bigger.
Episode 44: Top 3 Oilfield Stories of 2018
Richard and John address three issues expected to emerge in the coming year which will likely have a significant impact on post-2018 activity. The range of the discussion includes: What is a “bubble point”?; “backwardization” in the futures market; and the cost of rail transport.