Saudi Arabia to lower oil prices, the houston boom is over

Governments around the world and not just in the U.S makes profit by taxing oil,the higher the price ,the higher the benfits . If for instance a 100$ barrel of oil, means Nearly 34$ for government in the US, 42 in Canada , about 65$ in EU.

 

Engineering degree is the best because you have operational aptitude and a lot of the quant skills that are becoming more valuable for trade analytics, and project management skills for the operators who actually build and run pipelines and plants and all the midstream venture capitalists who are green-fielding and flipping processing facilities in the big shale plays. Business majors are largely sent into back office support roles like Trade Confirmations/Contract Administration, Measurement/Volume Control, and Settlements/Billing. Other than scheduling itself, product control/trade control/risk analyst is the next best middle-offce entree into front-office trading. Also bear in mind that all large refining, chemical, agricultural/ethanol and manufacturing firms purchase energy as part of their Strategic Sourcing functions, so having Procurement or Supply Chain skills, in a commodity context, might be valuable as well.

You need to go ahead and invest in Platt's Gas Daily, Megawatt Daily, or some other industry publications that both provide market, production and project news and the proprietary pricing interconnect and hub indices that traders use for spot deals. You also need some Platt's databases or Rextag maps that show all of the plays, hubs and pipelines for a particular product. Also go to industry regulators like FERC and find out who the biggest pipelines are, then contact them directly for system maps. Also go to each pipeline's Electronic Bulletin Board/Informational Postings to pull up their tariffs to understand transport pricing and different gas quality, cut and allocation scenarios and capacity types.

Be able to walk through developing a pricing curve or pricing storage and/or transport for an interview.

 

FWIW mrm32 I've been trying to get into scheduling for a year or so now. I have an economics degree and 3 years upstream experience, but have had no luck. I had an interview once and the guy interviewing me said he didn't consider upstream experience relevant to that midstream job. I wanted to smack him across the face.

 

Gathering is upstream, processing and liquids/NGL are midstream; scheduling deals with tariff grade product so it's downstream. People in each respective camp, and marketing v. operating schedulers, will start rattling off software systems or pricing concepts and throw that discrepancy in experienced candidates' face if they just sour on them in the interview.

 

Please. There is going to be a big cutback in capital (and operating) expenditures. Worldwide, 2015 may see a $150 billion drop in capex. Companies will reduce their rig lines, stick with their completion backlogs, and start looking for outsourcing/offshoring. Probably means a big drop off in exploration.

 

Well I have to give you credit for the most subtle diss in internet history. The job was in their midstream sector but the point of my reply was just to give him some info.

That particular interview, at a company I was already working at, was always a long shot for various reasons, but again the point was to just pass along some actual real-life experience.

 

Nobody dissed anyone slappy, settle down.

 

If the "government" you speak of is the Kingdom of Saudi Arabia then you're right.

 

You're pissed off that a sovereign, foreign government optimizes its natural resources to the benefit of its populus, as opposed to your transport budget?

 

We can't do anything about Saudi but what I am pissed off about is that the Exxon, Shell of the US benefited from the high crude oil price and still complained about government regulations and still have us paying for their tax breaks.

 

It's a pretty simple straightforward business plan, spend on lawyers, lobbyist, relentless propaganda and political donations and yield a net profit. It's the same as spending $70 to produce a barrell of oil you can sell for $100

There's no better example than the XL pipeline campaign. It means nothing but environmental risk for Americans but somehow ($) it has become a debatable political issue.

 

What kind of tax breaks, insurance and income are you going to provide the hundreds of thousands that will be laid off as a result of price movements?

 

It is despicable that someone would applaud a major market and JOB creator such as this field taking a downturn.

On the contrary, it is still going strong. This is my next project I will be working on:

http://theadvocate.com/news/11214356-123/2014-in-review-mega-projects-mount

 

Going strong? All of our IT contractors were axed last week and all of our projects have been put on hold. Continued low prices will likely lead to full time layoffs.

 

Are they the first people in this country that get laid off ?

 

Long time capital projects like the one Cwebb mentioned aren't going to be effected by current oil prices. All the majors are still planning long term projects, like oil platforms, at this time. Of course, as this continues some of the fat will get trimmed off to lower costs

 

Why on earth would anyone think that lower oil prices is a bad thing?

Does this apply to other industries? Should we want to pay more for food so that farmers can make more? Should we pay more for medicine to benefit the healthcare industry? Should be pay more for phones so that Apple and Samsung can employ more people?

 

It's just the folks in the fields hurting that cry about it.

Happens with farmers living off welfare, Millionaire Medicaid dentists after funding is cut. People who work in a field will try to convince you that their field is a backbone of a healthy economy.

 

Well we are a Houston-centric board, and for the last 8 years pretty much anybody in America that needed a well paying job could get one here, Midland or South Dakota. It's a little sad that that won't be the case until oil creeps back up to fracable levels. I don't know what the jobs are that will be created in the cheaper oil economy but there won't be many that pay $80K without a college degree.

 

You are seriously asking this question on a Houston based message board? Just wait until hedges run out (IF oil stays low for the entire year).

Upstream companies stop drilling for new oil/slow down existing production, which causes layoffs in the upstream E&P companies.

Midstream companies stop moving as much product, revenues drop which causes layoffs in the midstream sector.

Downstream will probably be okay regardless.

Service contractors stop getting jobs and service companies go out of business and thus more unemployed people.

Living in a city that relies on the O/G industry heavily (though not to the extent we did in the 80's crash), this means the local economy ends up in the ****ter. It means lots of people I know may not have jobs this time next year if this is long term.

I agree with your post to an extent regarding examples, but this is bad for Texas and Louisiana (and North Dakota as well for that matter) long term. Will it greatly harm the US as a whole? Not really.

But it does impact Houston. Or may if it continues.