Oil Patch - Texas vs Alberta

[alta270]

Article on CBC about why the patch is coming back in Texas, but not Alberta. For those of you out there, is this your experience? If so, this will have a continued major impact on our economy. Worse, I understand that the new rigs are so computerized now that they only need a crew of 3 to operate. Any one seen these yet?

http://www.cbc.ca/news/business/oil-...nada-1.4110300

[bytchtyts]

Technology has unlocked lots of already discovered oil reservoirs in the states. People have to remember that historically Alberta is a natural gas heavy province rather than oil (excluding the oil sands). These oil plays in the states ( Bakken, Permian) are way lower cost capital wise than the oil sands and therefore easier to get restarted when oil recovers slightly.

[lmtada]

Originally Posted by alta270

Article on CBC about why the patch is coming back in Texas, but not Alberta. For those of you out there, is this your experience? If so, this will have a continued major impact on our economy. Worse, I understand that the new rigs are so computerized now that they only need a crew of 3 to operate. Any one seen these yet?

http://www.cbc.ca/news/business/oil-...nada-1.4110300

Different rules in Texas. North Dakota quiet, like Sask, AB.

[bytchtyts]

Originally Posted by lmtada

Different rules in Texas. North Dakota quiet, like Sask, AB.

There are thousands of drill locations ready to go in N. Dakota just waiting for oil to get up to mid 50s/60. In fact, there are wells already drilled just waiting for prices to increase so they can complete and put on production.

[DiabeticKripple]

AB isnt quiet at all on the shale oil/gas side.

[Big Grey Wolf]

Lots of oil well/drilling activity by Fox Creek.

[cdmc]

I find it hard to believe all the headlines. Flat out in a lot of areas I work in. Breakup seems brief to non existent.
The gas world is gaining ground daily it seems thanks maybe to the ndps war on coal possibly.
If people got out and looked either for thier own benift or a job they would find its not nearly as dire as the media would like you to believe.

My .02

[srs123]

I can confirm to you that Alberta oil patch is not coming back. What's worse that spending in infrastructure is slowing down as less royalties are collected.

We are heading towards worse times for Alberta and will be so for another 5 or so years.

Hold on to ur money

[Norwest Alta]

Seems like around here the oil companies are spending money like drunken sailors. Bonding and destroying roads are unprecedented. May not build any leases this year but I got no doubt I'll be busy rebuilding roads and leases after this last falls and this springs mud bog.

[DiabeticKripple]

Originally Posted by srs123

I can confirm to you that Alberta oil patch is not coming back. What's worse that spending in infrastructure is slowing down as less royalties are collected.

We are heading towards worse times for Alberta and will be so for another 5 or so years.

Hold on to ur money

Considering EVERY major service company is hiring, I think the patch is alive and well in AB

[srs123]

Originally Posted by DiabeticKripple

Considering EVERY major service company is hiring, I think the patch is alive and well in AB

You are thinking crumbs. Nothing new is coming online. It is simply too expensive as it stands. There will always be small well operations all around but look at active rig numbers everywhere.

Additionally, The cost of carbon tax and the change in exploration law so that it is not tax deductible will mean less exploration and research.

40,000 engineering jobs have been lost in the patch and 22million square feet of office space sits empty in downtown Calgary.

Investment in Alberta was ranked at 7 in the world 100 best places to invest in the world. Now we are 43rd on the list.

Saskatchewan is Number 4 on the list.

The harsh reality is coming and it seems like most people haven't learned anything and will get caught with their pants down and resort to selling anything to buy a loaf of bread

[cardshark]

I don't see the oil sands coming back. Not saying they'll shut down entirely, but they'll struggle along for the foreseeable future. The easy money is gone. And that is a good thing for Alberta, in my opinion. We have plenty of things to worry about in our society and chasing easy money often brings out the worst in people.

[I_forget]

Originally Posted by cardshark

I don't see the oil sands coming back. Not saying they'll shut down entirely, but they'll struggle along for the foreseeable future. The easy money is gone. And that is a good thing for Alberta, in my opinion. We have plenty of things to worry about in our society and chasing easy money often brings out the worst in people.

Even though they are profitable right now? What do you base your opinion on ?

[bytchtyts]

The oil sands haven't stopped. The big thing I would expect to see is no new projects starting up until prices have recovered significantly.

[13mileranch]

MEG is actively drilling SAGD wells currently. Most Public Companies like to keep their production numbers and reserve numbers at least flat.

Nobody likes a constant stream of write-downs and failed ceiling tests. Access to Capital dries up quickly.

I suspect alot of the current activity is addressing these issues and hoping for better pricing ahead.

[densa44]

If this is the wrong place for this question, Cat just delete it.
I have read just about everything published on this site about the carbon tax, but the price I'm paying for gasoline at the pumps is the lowest in years.

Is there a short answer how this is possible?

[DiabeticKripple]

Originally Posted by densa44

If this is the wrong place for this question, Cat just delete it.
I have read just about everything published on this site about the carbon tax, but the price I'm paying for gasoline at the pumps is the lowest in years.

Is there a short answer how this is possible?

The oil price. Gas is actually artificially inflated right now to make up some costs.

[dmac]

Originally Posted by DiabeticKripple

The oil price. Gas is actually artificially inflated right now to make up some costs.

Artificially inflated?? What does that mean?

There is no firm correlation between the price of crude and the price of refined product. There are three components - crude, crack and finished product. All three are commodities which are traded independently on the exchanges.

[bytchtyts]

Originally Posted by densa44

If this is the wrong place for this question, Cat just delete it.
I have read just about everything published on this site about the carbon tax, but the price I'm paying for gasoline at the pumps is the lowest in years.

Is there a short answer how this is possible?

Supply/demand

[lmtada]

Originally Posted by bytchtyts

Supply/demand

Federal Government wants to Squash both.


http://www.cbc.ca/news/politics/audi...port-1.4116346


Sent from my iPad

[lmtada]

Originally Posted by bytchtyts

Supply/demand

Let's ask Art?

http://www.artberman.com/strong-natu...t-supply-2017/

[cardshark]

Originally Posted by I_forget

Even though they are profitable right now? What do you base your opinion on ?

Some are, some aren't. They've all cut back on operating expenses (such as wages, human labour required). My guess is that oil prices will stay low for a long time because of the new abundance of it around the world, and hence the "easy money" won't be coming back.

[ETOWNCANUCK]

Texas runs as it's own country within a country,

If any State could survive on its own after suceding from the Union it's Texas.

That and they know what they are and stand by it,
Not tiptoeing to please the other states.

It's like Alberta,
But Alberta needs a pair of dangling truck nutz to have a pair.

[260 Rem]

Originally Posted by densa44

If this is the wrong place for this question, Cat just delete it.
I have read just about everything published on this site about the carbon tax, but the price I'm paying for gasoline at the pumps is the lowest in years.

Is there a short answer how this is possible?

May 14 in YEG Regular was .99 ///four hours later in Toronto 1.11 .

[Sundancefisher]

Originally Posted by bytchtyts

Technology has unlocked lots of already discovered oil reservoirs in the states. People have to remember that historically Alberta is a natural gas heavy province rather than oil (excluding the oil sands). These oil plays in the states ( Bakken, Permian) are way lower cost capital wise than the oil sands and therefore easier to get restarted when oil recovers slightly.

Lots of oil in Alberta. Pembina field is huge. Lots of other smaller yet significant fields such as Manyberries in the SE to Valhalla in the NW...more being discovered...just not the large areas of newly charted lands in the US Permian. However oil rich resource windows in the Montney and Duvernay are being exploited now in Alberta also.

Cost to market including market restrictions to the states is an issue.

[bytchtyts]

Originally Posted by Sundancefisher

Lots of oil in Alberta. Pembina field is huge. Lots of other smaller yet significant fields such as Manyberries in the SE to Valhalla in the NW...more being discovered...just not the large areas of newly charted lands in the US Permian. However oil rich resource windows in the Montney and Duvernay are being exploited now in Alberta also.

Cost to market including market restrictions to the states is an issue.

I'm not saying there is no oil in Alberta just that generally the basin is a gassy basin compared to others worldwide. Alberta does really well when gas prices are high.

[I_forget]

Originally Posted by bytchtyts

I'm not saying there is no oil in Alberta just that generally the basin is a gassy basin compared to others worldwide. Alberta does really well when gas prices are high.

3rd largest proven reserves in the world

[I_forget]

Originally Posted by cardshark

Some are, some aren't. They've all cut back on operating expenses (such as wages, human labour required). My guess is that oil prices will stay low for a long time because of the new abundance of it around the world, and hence the "easy money" won't be coming back.

The existing operations are profitable. Once suncor is done building Fort hills and has no more new construction costs imagine how much they'll be making. Oil sands are not shutting down at all like you predict

[Mike_W]

I heard that Cenovus is planning to drill near 50 new gas wells with the takeover of Conoco Philips happening today.

[bytchtyts]

Originally Posted by I_forget

3rd largest proven reserves in the world

Yes, and if you read in my previous post I said (excluding oil sands). If you remove oil sands - not so much - it's a gassy basin.