LogFAQs > #926700037

mattnd2007 posted...

AngelsNAirwav3s posted...

Yup, oil has been getting absolutely hammered this last year by the market, I think the entire industry is going to have to go through a massive change the near future. Companies can no longer just go spend a bajillion dollars to raise production by 20% every year, when global demand for oil is only increasing a few % every year. Which sector are you in?

I work for a service company. They do frac and cement work. Cement is still really busy, frac has slowed down considerably. The lease companies have to get their wells cemented so they are ready to go. But then they can wait to frac them and start production when the market gets more profitable.

Ah yeah those are usually the companies that feel it first on a downturn, also midstream has been a big problem, why spend money drilling and completing wells if you can't even turn them on because there is no gas pipeline? I am really hopeful though that the industry changes this time around, instead of the typical boom/bust cycle, it will level out to just a flat, grow production slightly each year, steady business model like industrial companies.
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