Where the Falling Prices Affect Jobs


At the time of authoring this article, WTI for December 2015 last traded at $52.89 which is – $0.76 from prior settle. Should the futures hold, we are not expecting to rise above $50.00 until September. Along with this, according to a study by Oil & Gas Journal, currently planned capital expenditures for US producers is expected to drop 17% to $571 billion with an expected West Texas intermediate price of $70.00/bbl. However, the timeline to maintain or achieve a return to that pricing differs from company to company and leadership in many organizations may continue to recalculate additional expenditure cuts until pricing stabilization or sustained return to the WTI price which budgets were originally based against. [Read more…]

Oil Prices: How did we get here and where are we going? – Part One


“It’s difficult to make predictions, especially about the future”

     

  • Attributed to everyone from Niels Bohr to Yogi Berra

 
A barrel of oil today fetches less than $50, when only six months ago oil traded at over $100. How could such a drop in prices not have been anticipated? Actually, it was!
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Elimination of Engine Aftertreatment Key to Cutting Costs


Time is money, uptime is king and engine reliability is non-negotiable. In an environment of growing complexity, the oil and gas industry is looking for ways to drive escalating service and supply costs down. Balancing the scale between engine performance and efficiency can be a tightrope walk, but with the recent leaps in advanced engine technology, the industry has welcomed new cost-cutting innovations, with new system-streamlining technologies on the horizon. Once in market, operators can expect to see maintenance and fuel costs controlled even before a new engine is installed.
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The Shale Revolution: Expanding the Use of Alternative Financing Structures


THE BOOM: It is difficult, if not impossible, to survey the current energy landscape in the United States without seeing the phrase “shale boom”—for good or for bad—somewhere in the rhetoric. In the past 10 years, technological advances in fracking and horizontal drilling have drastically changed domestic production and overhauled the possibilities for the future. The U.S. shale boom is attributed with not only record U.S. gasoline exports and record increases in domestic crude production, but also lower gas prices for U.S. consumers, increased jobs for American workers, reductions in carbon emissions and even a possible boost to Black Friday spending in 2014. And in the realm of U.S. policy, the shale boom has provided a market response to concerns of foreign oil dependence that many would say is unrivaled by any formal government response. For these reasons, some say the “shale boom” is actually a “shale revolution” if we consider that shale advances have created a fundamental shift in the North American energy landscape in a relatively short period of time.
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