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03-19-2009, 12:12 PM
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Join Date: Oct 2007
Location: To Be Determined.
Posts: 2,190
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oil price article.
I remember (not that long ago) when oil hit $50/bbl, and figuring we'd never go down. I saw the bustling here in Edmonton, and didn't see a down coming.
http://www.edmontonjournal.com/Busin...709/story.html
Some interesting commentaries there...
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03-19-2009, 12:50 PM
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Join Date: Sep 2008
Location: Red Deer
Posts: 4,257
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Good article there Brew, Oil up another $2.50 today @ $51.50 US/D, it really is good new's when considering most of the world's economie's are in a recession right now, it look's like these economie's can tolerate at least $50.00 oil, now if the price of Nat Gas could move higher all the doom and gloomer's in our province might back off a little, maybe by fall we'll have positive sign's of a turn-around, let's hope...
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03-19-2009, 02:14 PM
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Join Date: Aug 2007
Location: where the wind always blows
Posts: 782
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the funny thing is when oil was 45 -50$ 3 years ago everyone was happier than a pig in siht that it was soooo high. now they bitch they can't make any money unless it is over 70$. pure greed is what it boils down to, they won't be happy until it is back to 150$ again. the government is the same, 3 years ago we had massive surplus $, now when the price is very similar(yearly predicted average) we are facing big deficits. go figure.
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God Hates a Coward
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03-19-2009, 02:23 PM
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Join Date: Sep 2008
Location: Red Deer
Posts: 4,257
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Quote:
Originally Posted by bingo1010
the funny thing is when oil was 45 -50$ 3 years ago everyone was happier than a pig in siht that it was soooo high. now they bitch they can't make any money unless it is over 70$. pure greed is what it boils down to, they won't be happy until it is back to 150$ again. the government is the same, 3 years ago we had massive surplus $, now when the price is very similar(yearly predicted average) we are facing big deficits. go figure.
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The cost side got out of hand, I mean is a welder and his rig really worth the $165.00/hr they were charging, or the $250.00/hr steamer, cost of Labor sky rocket's so ya these oil companie's needed the $100.00 oil, kind of a mad spiral effect where everyone get's a little Greedy, It wasn't just the Oil companie's Greed. Maybe now we can get back to reality, cost's are coming down big time....
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03-19-2009, 02:37 PM
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Join Date: May 2007
Posts: 5,412
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Quote:
Originally Posted by blackpheasant
The cost side got out of hand, I mean is a welder and his rig really worth the $165.00/hr they were charging, or the $250.00/hr steamer, :
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Perhaps not but the oil companies drove the prices to where they are today. I can't count the number of times I've been told "I don't care what it costs - just do it!" I'm not feeling their pain if you know what I mean.
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03-19-2009, 03:04 PM
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Banned
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Join Date: Nov 2007
Location: Calgary
Posts: 1,203
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Quote:
Originally Posted by 209x50
I'm not feeling their pain if you know what I mean.
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You will, if you want to get back to work...
It's far more complicated than simply the cost side of course, though that is a big part of it, it got completely out of control. The "simple" reserves are gone here in AB - when you have to drill $3-5,000,000 3000m HZ wells and frac the hell out of them to get any production or mine the oil on the surface, you need higher prices to make a return on the investment. The royalty hike is a part of it too.
It's also simple common sense. If you only had $1 to spend, would you spend that $1 to make $1.01, or possibly $0.90, or would you wait until that dollar you spent got you $2? Call it greed if you want to, I call it good business...
Waxy
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03-19-2009, 03:18 PM
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Gone Hunting
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Join Date: Feb 2009
Location: Lougheed,Ab.
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Quote:
Originally Posted by 209x50
Perhaps not but the oil companies drove the prices to where they are today. I can't count the number of times I've been told "I don't care what it costs - just do it!" I'm not feeling their pain if you know what I mean.
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HUH?????.....I've Worked In The Patch For 34 Years....And I Have Never Once Been Told "I don't care what it costs...do it" what drove the prices is that some people prefer to live life like their best month ever, not their worst.......when it is bad, they whine and cry about cutting rates, then when things start to pick up, they're at the trough to get their percieved "fair share" (and more to make up for their slower times).....it's the Oil Patch guys, get used to it....the oil companies have absolutely no say in what their product is sold for
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03-19-2009, 03:39 PM
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Join Date: Aug 2007
Location: where the wind always blows
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how can you say they have no say when you have opec cutting production to drive prices up.......it is not supply and demand anymore. if the price is not high enough they cut their production to make it higher.
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03-19-2009, 03:46 PM
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Gone Hunting
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Join Date: Feb 2009
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Quote:
Originally Posted by bingo1010
how can you say they have no say when you have opec cutting production to drive prices up.......it is not supply and demand anymore. if the price is not high enough they cut their production to make it higher.
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talking about domestic oil companies....last time i checked....Canada , the U.S. and Russia were not OPEC members......
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03-19-2009, 04:11 PM
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Join Date: May 2007
Posts: 5,412
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Quote:
Originally Posted by hal53
talking about domestic oil companies....last time i checked....Canada , the U.S. and Russia were not OPEC members......
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That doesn't matter in the slightest, OPEC and Wall Street control the price of oil and it has nothing to do with how much demand there is.
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03-19-2009, 04:17 PM
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Gone Hunting
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Join Date: Feb 2009
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Quote:
Originally Posted by 209x50
That doesn't matter in the slightest, OPEC and Wall Street control the price of oil and it has nothing to do with how much demand there is.
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totally agree....why do you think OPEC is paying demurrage on all the oil sitting in tankers offshore right now....they're not waiting out there for the price to go down further.....I was talking about the companies that operate here in Alberta...no international stuff....just trying to make a buck.....BTW.....EVERYONE in Calgary was stupified by the price going to 145 last summer.....no reason for it....also my first reply was about services....had nothing to do with current prices on WTI....by the way....have any idea how much Alberta oil qualifies for the prices you see posted everday???????????
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03-19-2009, 04:21 PM
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Join Date: Sep 2008
Location: Red Deer
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Nice to see the Nat Gas was up in price a little today as well.
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03-19-2009, 04:23 PM
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Gone Hunting
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Join Date: Feb 2009
Location: Lougheed,Ab.
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Quote:
Originally Posted by blackpheasant
Nice to see the Nat Gas was up in price a little today as well.
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yes very....but a way to go for the break even on CBM at $5.50.....
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03-19-2009, 04:24 PM
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Join Date: Jun 2007
Posts: 1,707
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Quote:
Originally Posted by bingo1010
how can you say they have no say when you have opec cutting production to drive prices up.......it is not supply and demand anymore. if the price is not high enough they cut their production to make it higher.
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Alberta seems to benefit fairly well from this price manipulation.
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03-19-2009, 04:26 PM
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Banned
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Join Date: Aug 2008
Location: slave lake
Posts: 4,221
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You realy think the prices are that much more than they were back when we first hit $60 bucks a barrel? Maby I'm out of touch but I dont remember welding being that much cheaper 4 or 5 years ago than it is now. If your paying $165 you should maby look into getting another welder. The only people I know that are charging anything near that much are big companies like Exact and Cobra. And at least for welding the oil companies did push those prices up, theres no reason you need to be a "B" pressure welder to do bowls and rig repairs but now they all want you to have your pressure ticket to do anything, so now they get to pay "B" pressure prices which is around 95- 110 with everyone I know. At 95 these day taking home less than you would have a few years back charging 85 so thats a factor as well.
I do agree that guys got realy stupid with their spending though, I think this slow down is a bit of a reality check.
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03-19-2009, 04:32 PM
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Join Date: Sep 2008
Location: Red Deer
Posts: 4,257
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Quote:
Originally Posted by hal53
totally agree....why do you think OPEC is paying demurrage on all the oil sitting in tankers offshore right now....they're not waiting out there for the price to go down further.....I was talking about the companies that operate here in Alberta...no international stuff....just trying to make a buck.....BTW.....EVERYONE in Calgary was stupified by the price going to 145 last summer.....no reason for it....also my first reply was about services....had nothing to do with current prices on WTI....by the way....have any idea how much Alberta oil qualifies for the prices you see posted everday???????????
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A few guy's are still getting paid $145.00/bbl, the guy's that hedged forward there production at that price. Most companie's hedge to a certain degree, so what they are actually get paid for there oil right now doesn't have to reflect what the current price is today. Trader's in New York and elsewhere pushed the price up to $145.00/bbl and made billion's, alot of people blame the oil companie's because they are an easy target, I'm sure most prudent oil conmpanie's cringed at the thought of $145.00/bbl oil..
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03-19-2009, 04:32 PM
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Gone Hunting
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Join Date: Feb 2009
Location: Lougheed,Ab.
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Quote:
Originally Posted by Cal
You realy think the prices are that much more than they were back when we first hit $60 bucks a barrel? Maby I'm out of touch but I dont remember welding being that much cheaper 4 or 5 years ago than it is now. If your paying $165 you should maby look into getting another welder. The only people I know that are charging anything near that much are big companies like Exact and Cobra. And at least for welding the oil companies did push those prices up, theres no reason you need to be a "B" pressure welder to do bowls and rig repairs but now they all want you to have your pressure ticket to do anything, so now they get to pay "B" pressure prices which is around 95- 110 with everyone I know. At 95 these day taking home less than you would have a few years back charging 85 so thats a factor as well.
I do agree that guys got realy stupid with their spending though, I think this slow down is a bit of a reality check.
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think 209 is from around GP...when it was busy there....you had to bite the bullet and let the tail wag the dog.....not so anymore....i can hear the whining all the way down here (yes, I spent a year there buidling shops , offices to start up an operation).....same as always....the guys that have been in the business the longest provide good service at a reasonable price continually.....those guys always seem to find work....hmmmmm????????...like my dad always said..."if you're working for a man for $1.00 an hour.....EARN that dollar"
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03-19-2009, 04:35 PM
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Join Date: Jan 2009
Location: Never Never Land
Posts: 1,751
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Quote:
Originally Posted by blackpheasant
The cost side got out of hand, I mean is a welder and his rig really worth the $165.00/hr they were charging, or the $250.00/hr steamer, cost of Labor sky rocket's so ya these oil companie's needed the $100.00 oil, kind of a mad spiral effect where everyone get's a little Greedy, It wasn't just the Oil companie's Greed. Maybe now we can get back to reality, cost's are coming down big time....
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I agree. Do not forget the 2 bonuses that come to all Journeyman on a Union pipeline. Big bucks per hour plus a very lucrative bonus structure.
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03-19-2009, 04:40 PM
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Join Date: Sep 2008
Location: Red Deer
Posts: 4,257
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Quote:
Originally Posted by hal53
yes very....but a way to go for the break even on CBM at $5.50.....
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For sure...
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03-19-2009, 04:44 PM
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Gone Hunting
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Join Date: Feb 2009
Location: Lougheed,Ab.
Posts: 12,736
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Quote:
Originally Posted by blackpheasant
A few guy's are still getting paid $145.00/bbl, the guy's that hedged forward there production at that price. Most companie's hedge to a certain degree, so what they are actually get paid for there oil right now doesn't have to reflect what the current price is today. Trader's in New York and elsewhere pushed the price up to $145.00/bbl and made billion's, alot of people blame the oil companie's because they are an easy target, I'm sure most prudent oil conmpanie's cringed at the thought of $145.00/bbl oil..
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very true,,,,lot of the hedges cancelled out 12/31/2008 as the slide began in Oct. but a lot of companies went on for awhile when oil was going for 60.00ish and less getting above market value, however with that my point was that not much Ab. oil qualifies for the WTI price.Also abosultely it was the hedge funds and speculators that drove the price....now they're running to the Gov't. for bailouts,,,,as they stop by the bank on the way to cash their frigging bonus checks!!!!
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