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Hey Oil Barons.......


936horn

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On 10/4/2020 at 9:37 PM, Eastwood said:


 

 


Certain companies are more than happy to do the bare minimum of contact and then force pool if they don't get something signed. Don't like it? Sue.

 

 Yep. It’s becoming more and more common. But you’re right, until someone sues, and doesn’t settle, it will continue. 

6 hours ago, Storm the Field said:

Within the last 2 years, I started seeing more and more Lessor-drafted lease forms that specifically preclude the Lessee from including the Lease in a PSA well or an allocation well without written consent. 

It all depends if the juice is worth the squeeze. But good for them, never give anything away. 

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On 9/30/2020 at 9:38 PM, Patricio Swayze said:

I’ve applied to 2 jobs a week on average since May. Haven’t worked since April. This sucks. So few jobs out there and the ones that pop up have so many people apply it’s tough to get noticed. I know people at chevron, Wood, Worley and some others that have been let go. Most haven’t found work yet. I am sick of this shit.

April of this year?  It gets easier with time but it isn't linear.  By year 3, the apathy sets in.  

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17 hours ago, T’Boo Ted Marshall said:

Lulz. I delivered 2 offers on a term royalty interest in Midland County.
Both from well qualified buyers and both under $7000/NRA.

Ask is $20k/NRA. Sigh. Managing seller expectations will never change in this space.

The bid/ask on minerals is still pretty far apart. Starting to see it come together a bit, but still a long way to go. 

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On 10/4/2020 at 7:28 PM, Neonmoon said:

Texas originally required 65% of all owners to sign to get a permit in Texas. Now I don’t think they even require them at all to get a permit.  There isn’t any case law on it on Texas. So they’re probably going to drill the well no matter what 

PSAs are the wild wild west right now. I've talked to my buddies at operating companies about the consequences of not signing PSAs and their response is always, we will drill it anyway, pay you like you signed it and you can take it to the Texas Supreme Court if you have the patience and deep enough pockets. I just sign them, be glad your getting a new well drilled on your minerals. 

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On 10/7/2020 at 2:36 PM, Lagunamadre said:

PSAs are the wild wild west right now. I've talked to my buddies at operating companies about the consequences of not signing PSAs and their response is always, we will drill it anyway, pay you like you signed it and you can take it to the Texas Supreme Court if you have the patience and deep enough pockets. I just sign them, be glad your getting a new well drilled on your minerals. 

I’d sign them. Companies will look for reasons to screw you if you don’t. If you’re big enough and they can’t drill around you, well you have leverage and should wield it. 
 

The best advice I can landowners is if it’s permissible in your lease, the company will go for it. A friend of my FIL has a frac pit on his property because he didn’t know what it was when he signed. You can’t control your operator, but you can control the language in your lease. There’s enough activity in the Permian that a landman or attorney is in your circle of friends. One lunch could pay for itself a thousand fold. 

Edited by billfromlaketravis
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Good day indeed. The boss man said he slipped 6 new hires into the 2021 budget. I guarantee at least 4 of the 6 will be fresh college grads, but probably a good indicator they won’t be any more lay offs. 
Taking resumes from people who are set up to work 100% from home?
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1 minute ago, Eastwood said:
30 minutes ago, billfromlaketravis said:
Good day indeed. The boss man said he slipped 6 new hires into the 2021 budget. I guarantee at least 4 of the 6 will be fresh college grads, but probably a good indicator they won’t be any more lay offs. 

Taking resumes from people who are set up to work 100% from home?

I’m sure they’ll go younger and cheapest, but I’ll keep you posted. 

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Again, no humblebrag or even brag b/c I did nothing to deserve it, but I’m astonished at the volume of DOs hitting my mailbox these last few weeks.  Just got another for a new well from XTO.  One thing in common is everything is Karnes these days.

33FD7D93-FA02-427E-9669-D4212044290B.jpeg

Edited by Cajun
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The scuttlebutt around midland is that with the decrease in materials, drilling and completion costs the profitability of drilling for decently efficient operators continues to rise.  Meaning drilling projects are becoming economic and lower and lower oil prices.  So we can expect this to drag out the draw down on storage/oversupply well into 2022. 

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33 minutes ago, BTW said:

The scuttlebutt around midland is that with the decrease in materials, drilling and completion costs the profitability of drilling for decently efficient operators continues to rise.  Meaning drilling projects are becoming economic and lower and lower oil prices.  So we can expect this to drag out the draw down on storage/oversupply well into 2022. 

We hear that after every bust.  Then when the next bust comes around all these supposed profitable operators go bankrupt or cut 80% of their work.

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IEA - World Energy Outlook 2020 Report released

https://www.iea.org/reports/world-energy-outlook-2020

Quote

Our assessment is that global energy demand is set to drop by 5% in 2020, energy-related CO2 emissions by 7%, and energy investment by 18%. The impacts vary by fuel. The estimated falls of 8% in oil demand and 7% in coal use stand in sharp contrast to a slight rise in the contribution of renewables. The reduction in natural gas demand is around 3%, while global electricity demand looks set to be down by a relatively modest 2% for the year.

then gives 4 different possible scenarios 

Quote
  • The Stated Policies Scenario (STEPS), in which Covid-19 is gradually brought under control in 2021 and the global economy returns to pre-crisis levels the same year. This scenario reflects all of today’s announced policy intentions and targets, insofar as they are backed up by detailed measures for their realisation.
  • The Delayed Recovery Scenario (DRS) is designed with the same policy assumptions as in the STEPS, but a prolonged pandemic causes lasting damage to economic prospects. The global economy returns to its pre-crisis size only in 2023, and the pandemic ushers in a decade with the lowest rate of energy demand growth since the 1930s.
  • In the Sustainable Development Scenario (SDS), a surge in clean energy policies and investment puts the energy system on track to achieve sustainable energy objectives in full, including the Paris Agreement, energy access and air quality goals. The assumptions on public health and the economy are the same as in the STEPS.
  • The new Net Zero Emissions by 2050 case (NZE2050) extends the SDS analysis. A rising number of countries and companies are targeting net-zero emissions, typically by midcentury. All of these are achieved in the SDS, putting global emissions on track for net zero by 2070. The NZE2050 includes the first detailed IEA modelling of what would be needed in the next ten years to put global CO2 emissions on track for net zero by 2050.

 

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I was just coming to post this. It explains a lot. Like why Will, the COO of Concho enrolled his kids in school in Houston at the beginning of this school year.

Typical that I finally unloaded my deeply underwater CXO stock about two weeks ago.

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I was secretly hoping that his move to Houston was indicative of the fact that he was on the way out.  He was a terrible choice for COO in the first place, and hugely unpopular with the employees.  Just check out this fake Twitter account that is clearly run by a disgruntled employee, or someone with inside knowledge of the goings-on. He was an attorney at V&E who was hired to Midland as general council. He then worked his way up the chain to where the only promotion was into the C-suite, and the only open position was COO (Engineer and Co-founder Joe Wright having recently retired, and Jack Harper having firm grip on president while co-founder Tim Leach would remain CEO).

tldr; I hoped it meant they were going to give his job to someone more qualified

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3 hours ago, BTW said:

I was secretly hoping that his move to Houston was indicative of the fact that he was on the way out.  He was a terrible choice for COO in the first place, and hugely unpopular with the employees.  Just check out this fake Twitter account that is clearly run by a disgruntled employee, or someone with inside knowledge of the goings-on. He was an attorney at V&E who was hired to Midland as general council. He then worked his way up the chain to where the only promotion was into the C-suite, and the only open position was COO (Engineer and Co-founder Joe Wright having recently retired, and Jack Harper having firm grip on president while co-founder Tim Leach would remain CEO).

tldr; I hoped it meant they were going to give his job to someone more qualified

UT Law grad,  not all bad, just miscast  ?     🙂

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Hey Rockefellers, your great great grandpa has a bunch of cunts for descendants. 
Classic. Nobody knows who these conflicted souls were so they had to throw 5th generation Rockefeller on the screen. Oil and JP Morgan are bad. Europe is good. Blah blah blah. We have no solutions but listen to us.
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I know we've already discussed this, but with it officially announced, I'm really interested to see what the trickle-down effects are here in Midland and across the shale players in general:

https://www.forbes.com/sites/davidblackmon/2020/10/19/conocophillips-doubles-down-on-the-permian-basin-and-fracking-with-concho-acquisition/#2199744328e8

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My friend bailed on land and took a job as a loan officer at mortgage company. Outstanding guy and a really good landman. Almost 20 years experience, a CPL, and he came up the hard way. Field - in house contractor - in house employee - land manager. Then his company went bankrupt earlier this year. It is what is, I hope his career move is temporary. I’d love to work with him again. 
 

Another friend was laid off at Callon a couple weeks ago. I thought he had 9 lives over there, but he finally got cut. 
 

Good luck everybody. I really mean that. 

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That's what today and yesterday are making it look like.

COVID restrictions going into full effect in Europe are going to be bad. And I assume some are coming to America also. I wouldn’t be shocked to see November - February start to look more like April. Thinking many people are going to cancel Thanksgiving and Christmas travel plans, especially if not feasible to drive
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COVID restrictions going into full effect in Europe are going to be bad. And I assume some are coming to America also. I wouldn’t be shocked to see November - February start to look more like April. Thinking many people are going to cancel Thanksgiving and Christmas travel plans, especially if not feasible to drive

Looks like Exxon letting go 1,900 from Houston office
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There are three ways to handle it. 
 

XTO method - nothing will change for years, maybe some staff reductions obviously, but then 5 years down the line, they close the office and relocate everyone to the main office. 
 

Fire Sale Method - lease is broken, office is shut down immediately, everyone must relocate to main office. 
 

Big Merger Method - long drawn out consolidation over time. 
 

 

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On 10/30/2020 at 10:56 AM, Neonmoon said:

There are three ways to handle it. 
 

XTO method - nothing will change for years, maybe some staff reductions obviously, but then 5 years down the line, they close the office and relocate everyone to the main office. 
 

Fire Sale Method - lease is broken, office is shut down immediately, everyone must relocate to main office. 
 

Big Merger Method - long drawn out consolidation over time. 
 

 

Put me down for the fire sale method. There’s too much bad blood when a company is acquired. Better for the company culture to just rip the band aid off and start over. 

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