Op-Ed: It's Payroll Day, But There Aren't Many Cookies Left In The Jar Anymore #opeds #onshore #oilfield

By 19th November 2015 Industry News No Comments

Friday is payroll day, again, but there are not a lot of cookies left in the jar anymore. Net, I am now below 38 dollars a barrel.

A load of oil going thru the cattleguard is not so bueno anymore. I am beginning to panic. My life’s work is in jeopardy. Its hard not to be angry about this particular price downturn.

I blame this one on my own industry, rather the shale oil industry, which truthfully does not have much to do with the oil business I grew up in.

Sure, I understand now it’s a chicken fight between OPEC and Russia and the US LTO industry, what the political implications are, how desperately politicians need cheap gasoline during election times and all that. What’s that got to do with me and thousands of other little guys like me?

I think if Pioneer and EnCana and Continental and all those shale guys would keep their overleveraged mouths shut about how much money they are going to borrow next year to drill more sorry shale wells maybe the rest of the world would give up on all this “who’s the big cheese” stuff and producers, all of us, could regain some say in what the price of oil is.

This Friday I am probably going to have to let someone go, someone who has been with me for many years, someone who has a family. I am heartsick. How heartsick do you think the jefes are at the big Independents when they have to let 3,000 go? They don’t give a rat’s you know what, I promise you. Those same jefes will be long gone when their junk bonds mature in 2018 and can’t be paid off, guarontee.

Onward the shale industry goes, borrowing money it cannot pay back, drilling wells that will never see daylight on payout, stuffing every tank it can with lousy LTO.

This, this mess we are in now, it has nothing to do with free enterprise, or free markets (the shale industry put 4.7 MBOPD on the market in 5 years with NO finding costs whatsoever!!), or normal price cycles, or price adjustments, or entrepreneurship; gimme a break.

It’s easy to say that kind of bull if you don’t have any skin in the game. This price decline is all about American greed, nothing less.

Sorry. Back to my backhoe I go.