Will OPEC+ be successful in its effort to reduce oil inventories in order to boost prices? Richard and John discuss whether this goal has already been met and when prices might respond.
What We’re Seeing in the Field
Operators and oil service firms have been reporting their Q2 results and what they expect to happen over the near term. Richard and John discuss their key takeaways about activity and the implications across the supply chain.
Where's the Exit?
Richard and John discuss the implications for the US oilfield arising from the lack of oil company M&A activity.
Bestsellers & Beach Reads
Richard and John suggest “oil-related” books and websites to enjoy on your trip to the beach this summer.
When Does US Output Stop Growing if Oil Prices Don’t Change?
Richard and John discuss the outlook for US crude oil production under various price/capex scenarios and speculate about the assumptions underlying the EIA forecast of US oil output.
What Drove the Keane/C&J Merger?
In response to listeners’ questions, Richard and John discuss the factors that drove the recent merger between Keane Group and C&J Energy Services, and how this will impact competition in the oil service industry.
Ep119: We Review Our Predictions for 2019
Our mid-year review! Last January (Ep96) Richard and John made some predictions for 2019. So, how are they doing? In this episode, the guys talk crude price volatility, Weatherford, and average frac sand per well.
What’s Your Breakeven Price?
While the average breakeven price is often cited for understanding which plays are most profitable, the range of breakeven prices within a play is less often reported. Richard and John discuss how the range of breakeven prices from high to low is useful for understanding how much activity might rise or fall as price expectations move up or down.
Where is Activity Headed?
As the dialogue between investors and operators has moved from “growth” to “capital discipline” to “free cash flow”, the term “maintenance capex” has begun to appear. Richard and John discuss what a maintenance capex strategy would mean for drilling and completion activity at a time when initial productivity (IP) seems poised to decline.
The EU and the US Oilpatch
As a group, ROE for publicly-traded US operators rose to a five-year high in Q4 2018, as production increased and cost per barrel held steady. But the overall results were skewed by the good performance of the largest operators, as smaller firms remain under pressure to cut spending. Richard and John discuss how the financial health of US operators resembles the problems faced by the EU in stimulating its economy.