This post by an operator, if representative of conditions generally, would be telling about conditions in the patch. Implies any meaningful ramp up in drilling will be slow to materialize. Reinforces the view that those producers who have the people they need to drill/complete additional wells, and have materials needed for same already contracted for, will outperform those who don’t. Also implies that services companies finally have pricing power.
Permian Drilling Update
Our $7.5 million per well on a 2- well pad 6 months ago is now $9.7 million per well.
I was going to consider some casing exit Horizontals but passing for now. Don't/Won't spend $3 million for those type wells.
We will Drill Bone Spring Horizontals and perform Recompletions in vertical wells for now. The shortages you guys hear about (Tubing/Casing) are getting worse.
An issue we are having with hiring workers is the President and the Transition story. When you hear those guys talk on tv and the hatred for our industry why would you go back to work in a industry targeted for termination? I believe we will be producing oil and gas for decades to come but I'm not trying to hire me.
It's very strange. I'm going to quote myself from 10 years ago "$100 oil isn't as much as Fun as we thought it would be"
And one from the Bar:
600 Bankruptcies in Energy in 5 Years , and now they are ATTACKING Energy Profits and Buybacks
Haynes Boone has monitored North American oil and gas producer Chapter 11 bankruptcies since 2015. This is our final report, which covers new cases filed during 2021. Over the past seven years, there have been 274 oil and gas producer bankruptcies. In the same period, 330 oilfield services and midstream companies have filed for bankruptcy, bringing the combined North American industry total to more than 600 industry bankruptcies involving over $321 billion in secured and unsecured debt