All I got was a frozen turkey and a cheap bottle of booze

[TexasBred]

I know from an employee that they were promised this bonus at the beginning of the year if they hit a certain percentage increase in there production. They must have hit that percent notwithstanding the drop in oil prices. I can only guess that the owner is a man of his word.

http://www.foxnews.com/us/2015/12/12/hilcorp-energy-gives-100000-bonus-to-all-1381-employees/

If somebody made me that offer I'd dam sure see to it that we reached the production level. Might have had to sell it deeply discounted to move it but we would have produced what they said. Makes you wonder if this operation will be around next year. Production is meaningless if you're having to sell it for less than it cost you. That's why most have shut down production completely unless they had already sold the oil on contract for a much higher price than current market.

 

[bbirder]

I know from an employee that they were promised this bonus at the beginning of the year if they hit a certain percentage increase in there production. They must have hit that percent notwithstanding the drop in oil prices. I can only guess that the owner is a man of his word.

http://www.foxnews.com/us/2015/12/12/hilcorp-energy-gives-100000-bonus-to-all-1381-employees/

If somebody made me that offer I'd dam sure see to it that we reached the production level. Might have had to sell it deeply discounted to move it but we would have produced what they said. Makes you wonder if this operation will be around next year. Production is meaningless if you're having to sell it for less than it cost you. That's why most have shut down production completely unless they had already sold the oil on contract for a much higher price than current market.

TB, The workers I am familiar with are in charge of production and have nothing to do with sales. They get more production by carefully monitoring their wells and fine tuning the valves. The owner, basically one man, must have done well to pay the bonus. I'd say he made a small fortune early in the year. A well run independent like this has less expenses than a Major. I know good operators who would love to get on with them.

 

[greybeard]

I know from an employee that they were promised this bonus at the beginning of the year if they hit a certain percentage increase in there production. They must have hit that percent notwithstanding the drop in oil prices. I can only guess that the owner is a man of his word.

http://www.foxnews.com/us/2015/12/12/hilcorp-energy-gives-100000-bonus-to-all-1381-employees/

From their 'vision/mission/values' webpage:

Our Core Values:
Integrity – "Do the Right Thing"
Urgency – "Act Today, Not Tomorrow"
Ownership – "Work Like You Own the Company"
Alignment – "When Hilcorp Wins, We All Win"
Innovation – "Get Better Every Day"

 

[lavacarancher]

A year or so ago I tried to explain the trickle down effects of low oil prices but pretty much got ran off. I think some folks are now seeing what I was trying to explain.

Here is a chart of the current cost of production of one bbl (42 gallon barrel) of oil. Make sure you look down to the bottom of the chart to see what Saudi's production cost is and then tell me where the problem lies. Remember, this is not SELLING price, this is what it costs the producers to extract one barrel of oil from the reserve.

Russia Arctic 120.00
Russia Onshore 18.00
Canada Sand 90.00
Brazil Offshore 80.00
United States Deep-water 57.00
United States Shale 73.00
Angola Offshore 40.00
Ecuador Total 20.00
Venezuela Total 20.00
Kazakhstan Total 16.00
Nigeria Deep-water 30.00
Nigeria Onshore 15.00
Oman Total 15.00
Qatar Total 15.00
Iran Total 15.00
Algeria Total 15.00
United Arab Emirates Total 7.00
Iraq Total 6.00
Saudi Arabia Onshore 3.00

 

[TexasBred]

Yep but that's Saudi Arabia. Cost to us will still be whatever market can handle. Now look at our cost and you'll understand the layoffs and bankruptcies of oil and gas related businesses.

 

[hurleyjd]

Yep but that's Saudi Arabia. Cost to us will still be whatever market can handle. Now look at our cost and you'll understand the layoffs and bankruptcies of oil and gas related businesses.

We are just beginning to see the real cost of the oil downturn. There will be a lot of supporting equipment for sale by the lending institutions.
A company in my area has hundreds of sand hauling trailers and heavy equipment hauling trailers. Another company in the area that buys oil at the well head now has hundreds of oil tanker trucks parked. Young men with high priced toys bought with high paying oil field jobs will have a problem paying the installment payments. I know a person that is managing three credit unions told me that we have the same thing in the automobile industry that was in the housing crisis his opinion was that this is about become a real problem. I think that I might survive in this market but not sure. Property tax this year is $4500 this will take the proceeds of six calves to meet the tax cost. Then there is insurance on everything. It will be very hard to eke out a profit next year. All pastures need limed.I think I will get some plywood and make cutouts of cows to move around to look like the pastures are full. Might fool the appraiser to be able to keep the AG exemption.

 

[Craig Miller]

A year or so ago I tried to explain the trickle down effects of low oil prices but pretty much got ran off. I think some folks are now seeing what I was trying to explain.

Here is a chart of the current cost of production of one bbl (42 gallon barrel) of oil. Make sure you look down to the bottom of the chart to see what Saudi's production cost is and then tell me where the problem lies. Remember, this is not SELLING price, this is what it costs the producers to extract one barrel of oil from the reserve.

Russia Arctic 120.00
Russia Onshore 18.00
Canada Sand 90.00
Brazil Offshore 80.00
United States Deep-water 57.00
United States Shale 73.00
Angola Offshore 40.00
Ecuador Total 20.00
Venezuela Total 20.00
Kazakhstan Total 16.00
Nigeria Deep-water 30.00
Nigeria Onshore 15.00
Oman Total 15.00
Qatar Total 15.00
Iran Total 15.00
Algeria Total 15.00
United Arab Emirates Total 7.00
Iraq Total 6.00
Saudi Arabia Onshore 3.00

I got the same. Some of the guys on here will never believe how much the oil fields effect the total economy. They are just happy to be filling their tanks so cheap. I pretty happy about it too since the pay cuts have come but I still understand the effects nationwide. I dont believe your numbers are completely accurate. Everybody has cut pay and cost so Im sure the numbers are high based on current cost.

 

[lavacarancher]

A year or so ago I tried to explain the trickle down effects of low oil prices but pretty much got ran off. I think some folks are now seeing what I was trying to explain.

Here is a chart of the current cost of production of one bbl (42 gallon barrel) of oil. Make sure you look down to the bottom of the chart to see what Saudi's production cost is and then tell me where the problem lies. Remember, this is not SELLING price, this is what it costs the producers to extract one barrel of oil from the reserve.

Russia Arctic 120.00
Russia Onshore 18.00
Canada Sand 90.00
Brazil Offshore 80.00
United States Deep-water 57.00
United States Shale 73.00
Angola Offshore 40.00
Ecuador Total 20.00
Venezuela Total 20.00
Kazakhstan Total 16.00
Nigeria Deep-water 30.00
Nigeria Onshore 15.00
Oman Total 15.00
Qatar Total 15.00
Iran Total 15.00
Algeria Total 15.00
United Arab Emirates Total 7.00
Iraq Total 6.00
Saudi Arabia Onshore 3.00

I got the same. Some of the guys on here will never believe how much the oil fields effect the total economy. They are just happy to be filling their tanks so cheap. I pretty happy about it too since the pay cuts have come but I still understand the effects nationwide. I dont believe your numbers are completely accurate. Everybody has cut pay and cost so Im sure the numbers are high based on current cost.

Some of the numbers I have a hard time believing myself but they are not MY numbers but rather an oil industry watchdog company. And I believe the compilation was done in 2014 or late 2013 so some things have changed.

About three months ago I read an interview with the king of Saudi and he (the King) said Saudi could make a profit at $10/bbl. If they can profit at $10 what does that say for the US oil industry at seven times that cost in production, not profit, discovery and production? ISIS is a knat on the head of a ____ compared to what the so called moderate middle east countries are able to do to us.

 

[TexasBred]

Yep but that's Saudi Arabia. Cost to us will still be whatever market can handle. Now look at our cost and you'll understand the layoffs and bankruptcies of oil and gas related businesses.

We are just beginning to see the real cost of the oil downturn. There will be a lot of supporting equipment for sale by the lending institutions.
A company in my area has hundreds of sand hauling trailers and heavy equipment hauling trailers. Another company in the area that buys oil at the well head now has hundreds of oil tanker trucks parked. Young men with high priced toys bought with high paying oil field jobs will have a problem paying the installment payments. I know a person that is managing three credit unions told me that we have the same thing in the automobile industry that was in the housing crisis his opinion was that this is about become a real problem. I think that I might survive in this market but not sure. Property tax this year is $4500 this will take the proceeds of six calves to meet the tax cost. Then there is insurance on everything. It will be very hard to eke out a profit next year. All pastures need limed.I think I will get some plywood and make cutouts of cows to move around to look like the pastures are full. Might fool the appraiser to be able to keep the AG exemption.

You're exactly right. Seeing lots of it already Hurley.

 

[TexasBred]

About three months ago I read an interview with the king of Saudi and he (the King) said Saudi could make a profit at $10/bbl. If they can profit at $10 what does that say for the US oil industry at seven times that cost in production, not profit, discovery and production? ISIS is a knat on the head of a ____ compared to what the so called moderate middle east countries are able to do to us.

Don't forget he was interviewing the "KING". I'm surprised it cost $3.00. Unemployment in the kingdom is at 10 percent — but among the 15-24 age group, it is almost 40 percent, and about two-thirds of the country's population is below age 29. IF you find a job you take what you can get or what the King approves.

 

[bbirder]

Lava,
Remember that oil and sand is all they have to sell. We were on the road to self sufficiency with energy in this country. We would have been exporting more than we import. This would have put them on their knees because they can't eat the stuff. Then along comes our great potus (not capped on purpose) and he starts putting the choke hold on the energy companies, protecting his bud's over in the desert. Remember we will run this country with windmills. They should put an extension cord on his airplane. He is forcing us to depend on those arabs and you are right, they will now be able to do what they want with us. :2cents:

 

[greybeard]

I got the same. Some of the guys on here will never believe how much the oil fields effect the total economy. They are just happy to be filling their tanks so cheap. I pretty happy about it too since the pay cuts have come but I still understand the effects nationwide. I dont believe your numbers are completely accurate. Everybody has cut pay and cost so Im sure the numbers are high based on current cost.

It's almost as if some people believe that anyone employed in oil/gas/electricity industry get their gasoline and diesel for free.

 

[john250]

I got the same. Some of the guys on here will never believe how much the oil fields effect the total economy. They are just happy to be filling their tanks so cheap. I pretty happy about it too since the pay cuts have come but I still understand the effects nationwide. I dont believe your numbers are completely accurate. Everybody has cut pay and cost so Im sure the numbers are high based on current cost.

It's almost as if some people believe that anyone employed in oil/gas/electricity industry get their gasoline and diesel for free.

They don't?

 

[Craig Miller]

I wish.

 

[TCRanch]

The oil company that had the original lease on our property would send us a 4' pepperoni every year as their Christmas Thank You. I'm not ashamed to admit how much I looked forward to it Sadly, they were bought out and even though they still lease a portion to store their machinery, we longer qualify for the mega-stick-o-meat.