Category: News

Oil and Gas Predictions for 2019

 

 
Oil and Gas Predictions for 2019

All right it’s that day that you all been clamoring for, it’s our oil and gas predictions for 2019. We’ve been on this little tour and done this a couple of times with some private groups. Then this came out a few days ago on the podcast. It went out to the podcast audience first, but then we are releasing right after to everybody that follows my blog and watches my YouTube videos. So, let’s just jump right into the predictions for next year, and check out the best dividend paying oil stocks for 2019 as well.

Decline of Field Sales. Where is the Jerky?

Number one, decline of field sales. And you go, “What?” You heard me, decline of field sales. Right now around the world and especially on land in the shale basins, there are these sales people that do nothing but deliver donuts and beef jerky. And don’t hate me, I know you all do way more than that. But what they are really doing is continuing the in-person relationships with the operators. That’s really important. 

That operator out in North Dakota or in West Texas needs to know the vendors he can rely on, and one way to do that is regular contact. And if you bring a gift of food (which the oil and gas industry loves), you help further strengthen those bonds. So that the operator knows that they can trust you and your company if they really need you for something.

Oil and Gas Predictions for 2018

Oil and Gas Predictions for 2018

Hey, folks it’s that time…Oil and Gas Predictions for 2018.

We’ve done this since 2014 (2015, 2016, 2017), and we went back and looked and we have about a 75% success ratio. Which is actually pretty good, considering we aren’t professional analysts. But we do get this information from our clients and also the research we do all year long. So are you ready?

Number one. Online searches. Up until recently it didn’t matter if your company made 1-inch ball valves, if you showed up on Google. Surprisingly we’ve done the research and from 2014 to the end of 2016, online supply chain searches in oil and gas globally have grown 1700%. That’s right, 1700%.

Why? The old guy in the warehouse who knew where the 1-inch ball valves were, he didn’t go online and look for anything. If his boss told him to get some, he had vendor A, B, and C because he’s played golf with them for the past twenty years. They went out drinking, dinner, hunting, fishing and so on. So he knew where to get the ball valves. And if for some reason his vendors couldn’t supply him, he had a stack of paper catalogs he’d looked through. Well now he is gone. He’s taken the package or he’s retired. The new young person right out of school that took his job, when his boss says get me 1-inch ball valves, first thing he does is look for it on Google.

If your company doesn’t have a strategy to show up in organic search — searches for whatever your company does. Whether it’s a process, a service, parts, whatever. If you don’t show up in online searches, that it’s going to start hurting your business now. And you’re going to lose large chunks of your business in the future.

Online Searches-Vital for Oil and Gas Predictions for 2018

I know several large (and I mean really large) oil and gas service companies that are aware of this, and they’re working on it right now. Now the cool thing is if you’re a small company, you can pull ahead of these larger companies. If you go online right now and search for oil and gas sales experts, you’ll see me, modalpoint dominate huge multi-billion dollar companies, because we understand the importance of this. If you want to see some really extra cool, go search for oil and gas speaker and see who comes up number one.  So that’s the first one for Oil and Gas Predictions for 2018, online searches.

Number two. This new younger workforce; they act and think differently. We talked about number one. This new younger workforce is coming in and they’re going to expect consumer grade technology. No matter how well you treat them, no matter what type of path to future success they have, they’re not work for your company for 20 or 30 years because they want different work experiences. Just the paycheck isn’t enough for them. They want to make a difference and they want to understand what’s going on, and play a part.

So this new younger workforce is coming in and it’s coming very fast. Right now, about 33% of the oil and gas workforce here and Europe are under the age of 35. In five years, this will be 70%.  You have no choice, they’re coming and that’s who’s going to be running our industry. You got to get used to it, but that’s one of our oil and gas predictions for 2018.

Labor Shortage (No Really)

And then, everybody is going to think I’m crazy. Remember, last year I called the — the inflation on land at the very end of 2017 which is going on right now, so we got that one right.

So number three. Labor shortage. Yeah. Yeah. Yeah. I know we’ve had a bunch of layoffs in industry especially upstream and the service companies, but we’re facing a labor shortage; skilled labor, unskilled labor, managerial, project managers, engineers. There are simply not enough young people going to school to supply the need that we have.

So, one of two things are going to happen. You will see a price war breakout, which is never good for our industry. Or we’re going to have to look at ways of running our business with less people, and that’s an interesting way to go. We think there’s going to be a technology play there so we are keeping an eye on that. So, number three is labor shortages.

Number four for Oil and  Gas Predictions for 2018. Changing buyer behavior. If you’ve been in sales in oil and gas, you’ve always looked for the “decision-maker”. Well he doesn’t exist anymore. It’s now a decision making team. And what used to be a linear track from discovery to close is now all convoluted, because all the different decisions have to be made by different groups of different people. If your sales and marketing organization doesn’t understand how that’s changing, you’re going to get left behind. So change in buyer behavior is number four.

Then, number five. We’ve hit the valley of negative public perception. We think 2018 the public perception of oil and gas (which is not good right now) will hit rock bottom. It’s interesting, of the millennials about 13% think of oil and gas in a positive way. The generation, the one right behind them, it’s a negative 3.5%. Come on people, as an industry we have to change that.

We have several oil and gas podcast and that’s our mission on the podcast. Its to help change the young people in the world’s opinion of this great industry (see bottom of this page). And we think in 2018, we’re going to hit the bottom of that negative public perception. And then we will start coming back up. We’re starting to finally understand how to use social media. And the world at large is starting to understand the prosperity that we bring with cheap, abundant, reliable energy. So rock bottom public perception and starting to reverse that trend is an Oil and  Gas Predictions for 2018.

Oil and Gas Predictions for 2018 – New Business Models

Then new business models. Come on, Schlumberger is now an operator? You have pipeline companies that are actually standing up ethylene crackers. The world of oil and gas is changing and there’s these new business model that companies are trying. If you think about Schlumberger forming joint ventures with NOCs, what they are doing is testing the waters. They do that all the time (think OneSubsea). And once they get it figured out, then they’ll go full-blown and become an operator as one of their business units.

Imagine Schlumberger is an operator. Number one they can sell their services at cutthroat prices, which reduces the overhead of those wells, which means they can make money where anybody else can’t.  Or they can keep their services the same, but make sure they provide the on time and help that operator which it would actually allow Schlumberger to produce oil in a more economical way. Either way they win, so they’re mitigating their risk by becoming an operator. That is really cool. And like I said, there’s a whole bunch of different models being tried and this is something new for oil and gas in 2018.Oil and Gas Predictions for 2018

Then finally, number seven. We’re having confidence in upstream sector. Prices are still low and prices are going to stay relatively low forever. That $50 to $65 price range, but we’ve driven so many inefficiencies out of the system that we are now comfortable with that price range. So investors, upstream companies, the NOC’s, the majors, the super majors, they’re starting to spend money again in upstream. They’re not going to do silly stuff and land still rules, but you’re seeing that confidence come back in upstream which is good for everybody.

Then, pay attention. Here in the U.S. we’re going to have a boom in midstream; pipelines, tankers, rail, etc?  Look at all the pipelines being built in the Permian. Why? Because it drives efficiencies and it’s safer for the environment. Plus it makes it a more predictable model not just to move the crude that you get out of ground, but to remove around the fresh water you need,  to move the produced water to move around natural gas.

There’s a whole Renaissance of new pipelines being built in the U.S. and you need to get ahead and understand it because it’s number eight Oil and Gas Predictions of 2018.

NGL’s Will be Huge

Then NGL (natural gas liquids) they’re going to be huge. As we increase our production the world has an appetite for our NGLs. NGLs things like butane, pentane, propane and we are producing the begebe’s out of NGL’s and we are selling it to the rest of the world at very high margins. That’s stuff we use to almost just throw away, we are now selling and making very healthy margin on. So NGLs are going to be a huge business boom and are part of our  Oil and Gas Predictions for 2018

Now I called this wrong in 2015. But I’m going to call it again and put my neck on the line. Number ten for Oil and Gas Predictions 2018, Mergers and acquisitions. I think the M&A activities will go through the roof in 2018. I think you can see large service companies combined to join forces. I think you will see a lot of independents combining. I think you’re going to see companies that just to be used thought of a technology company buying bits of oil and gas because they know they can make money out of it. I think the M&A activity for 2018 is going to be crazy and that’s just good for everybody.

All right. So, I just rattled off our ten Oil and Gas predictions for 2018. Can you do me a favor if you found it useful, can you share this? You know forward it to a friend, do the all company e-mail, post it on Twitter, whatever.

But this is our predictions for 2018. I hope you found it valuable. And like I said we have the podcast. I’ll put a link in the show notes so you can go check those out. We have a bunch more in the works. And we’re really building this Oil and Gas Global Network media super power in oil and gas. Its fun and we’re making a difference.  So, go check that out as well.

Podcasts

Oil and Gas This Week

Oil and Gas Industry Leaders

Oil and Gas HSE

 

Oil and Gas Predictions for 2017

Our Oil and Gas predictions for 2017.

Historically, this is what we call the business drivers for each year. We’ve done 2014, 2015, 2016. This year, we’re changing the title. So this is the Oil and Gas Predictions for 2017. Let’s do it.

Number one, petrochemicals

oil and gas predictions for 2017Petrochemicals will be a huge business globally; methanol, ammonia, ethylene, polypropylene, fertilizers, plastics. All that is going to be huge because the raw feedstock is so abundant and so cheap here in the US. It might a good time to be looking at buying some BASF stuff or Dow stock because of that 😉

Number two, global ethylene shortage.

If you don’t know what ethylene is, ethylene is what ethylene crackers take out natural gas and help convert into plastic things like polyethylene. So, it’s the raw feedstock of plastics. Globally, demand for this is going through the roof and the supply is not there. That’s driving a lot of business. Look at all the ethylene crackers that are being built here in the US and globally. So, another major oil and gas predictions for 2017 is ethylene shortage.

Number three, offshore standardization.

The Holy Grail. This industry is a long term low crude price environment which means that we have to drive cost down. Historically, offshore everything is built to suit. So, Exxon builds a platform its way for this part of the world, Anadarko builds a platform this way for its part of the world and everything is different, the trees, the manifold, everything is unique. That needs to go away and it will. We’re just now starting to see this the beginning of that. All the majors have signed a memorandum of understanding to start looking at standardization even though they’re competitors. This is huge. Once again an Oil and Gas predictions for 2017.

Number four, inflation in the service industry on land.

Then, and everybody used to say I’m crazy. At the end of 2017, we’re going to see inflation in the service industry on land. There’s not going to be enough people, enough pumps, enough parts. We’re going to see prices go up. We’re not there yet, but the end of 2017 you’ll actually start seeing inflation from the service companies on land.

Number five, long term hydrocarbon abundant world.

Then, we’re in this long term hydrocarbon abundant world. Oil and gas is everywhere, we don’t know what to do with it. You know think about that because it’s a long term hydrocarbon abundant world, prices are going to stay low for a very, very, very long time. Which is going to drive different business models and that is just – it’s actually a good thing. The price could stay high enough where companies can still make money, but low enough so that the population benefits from this abundant cheap energy, so a great thing an another oil and gas predictions for 2017.

Expensive Oil is Dead is an Oil and Gas predictions for 2017

 

Number six, expensive oil is dead.

Then, because of that, expensive oil is dead. High pressure, high temperature, ultra deep water, Oil Sands and the North Sea — dead. Sorry. But that in itself is driving business. So, when you think about the decline in North Sea, you have all these opportunities for decommissioning and nobody’s looking at it yet. You’re looking at fifty years maybe even a hundred years of decommissioning work. That’s a lot of money to may be taking these platforms offline. So, just because expensive oil is dead, don’t think there’s not business opportunities. Now, that expensive oil will come back as we improve technologies and as we reduce cost somewhere in the future. Another twenty or thirty years, so that oil will come back, but we’re not there yet.

Number seven, fundamental changes.

Then, the basic fundamentals of oil and gas industry is changing right now. We’re seeing the transformation. So, the typical start out in the field when you’re 18 years old work your way through the company and you end up running parts of the business, that’s gone. All of the senior guys a lot of them have left the industry. The new people that are coming in this industry are young, but they’ve never been on the well, they’ve never picked up a torque wrench. So, fundamentally this industry is changing and I actually think it’s changing for the better.

Number eight, unconventionals go global.

Then, here’s a big one, unconventionals, they go global. The shale plays here in the US, that geology is not unique here. That same geology is in China, it’s in Russia, it’s in Africa, it’s in Europe and your startingoil and gas predictions forecast for 2017 and see the beginnings of unconventionals going global. Once again it will keep hydrocarbon cheap because there’s so much oil and gas out there. And another oil and gas predictions for 2017.

Number nine, politically conductive administration.

Then, for the first time in American history, we have the most politically conductive administration for the oil and gas industry ever, right? I’m expecting a lot of this administration. I’m expecting to see a lot of the teeth being removed from the EPA which is a good thing. I’m expecting federal lands being opened up for drilling. I’m expecting a lot of the executive actions that hurt the oil and gas industry will be rescinded. And what I think is really cool is for the first time in my lifetime, people that are putting political office during this administration for the oil and gas industry are actually from the oil and gas industry not politicians. That’s good for all of us.

Number ten, land rules.

And then, finally, number ten the last thing prediction, land rules. Sorry, land rules. I’m looking at all the capex budgets for the majors out there, they’re shifting their budgets, they’re reducing their offshore spin, but they’re increasing their land spin. Once again, that’s a great opportunity if you can get ahead of that.

So, there we did went through really quick our ten oil and gas predictions for 2017. If you like this and found it valuable, can you do me a favor? Can you use the social share buttons on this post and share it with your social media please?

And then anybody that has an interest in what we’re talking about, can you forward them this blogpost? It helps us spread the word and reach more people.

So, folks I hope this helped. We will see you next time.

Top 10 Oil and Gas Business Drivers for 2016

Top 10 Oil and Gas Business Drivers for 2016.

People have been hammering me like crazy, “Mark, when are you going to do your predictions for 2016?” We’ve even had people reach out to us on our podcast who want to know when it’s going to happen. So we’re going to do it right now. This is our top 10 Oil and Gas Business Drivers for 2016

Number one. Increased interest rates. We think that interest rates are going to go up in 2016 that is going to increase the cost of capital. Now, unfortunately for a lot of the smaller upstream operators in North America they’ve lost a lot of their existing hedging. This increase in interest rates is going to increase the cost or capital, which will actually hurt them even more. Which is unfortunate, but it is going to be one of the business drivers in 2016.

Number two. Operational excellence. So, operational excellence got started in automotive. In the oil and gas industry has dabbled in operational excellence before, in fact we did this big long blog post about operational excellence in oil gas. You can find it here. But going forward upstream and the service companies that service upstream are going to have to improve efficiencies. So they’re going to have to change their culture, the way they think about stuff. Things like continuous improvement which they don’t have imbedded in the entire company, has got to become core to their business. So, number two of the top 10 Oil and Gas Business Drivers for 2016 is operational excellence.

Top 10 Oil and Gas Business Drivers for 2016Number three. Talent. And, I’m telling you people think I’m crazy, there’s still a huge shortage of talent in this industry. Yes, there have been layoffs in the upstream in the service companies that touch upstream, but downstream and midstream are hiring like crazy. In fact, there’s not enough bodies out there and one of the things that’s new is there’s a lack of skilled labor. So things like pipe fitters, machinists, welders, there’s not enough of them to meet the need, so that shortage is going to drive business decisions. So, number three is lack of talent.

Number four. Export. And, I should have saw this coming, but I just recently figured this out. You know here in the U.S. we use about 20 million barrels a day, but we don’t actually consume 20 million barrels a day. We use 14, the other 6 are exported as refined goods. And the U.S. has the most robust, efficient, and largest refining capacity in the world. And when I say refinery most people think fuels – jet fuel, diesel, gasoline. No, think of all the petrochemicals, plastics and fertilizers. So, this will become major business driver and this is going to be a bit of a new business is exportation of refined goods from the U.S. So the number four of the top 10 Oil and Gas Business Drivers for 2016 is export.

Crude will get back to $60 a barrel

Number five. Crude prices. Now, we said over a year ago that we thought crude get back to $60 a barrel in April. We still are saying that oil will get back to $60 a barrel, but now we’re thinking it’s more like August. But it will happen in 2016. But it won’t go back to $90 or $100 a barrel, so the industry as a whole have to learn how to work in that $60 to $75 price range which for most of the guys is totally fine, that’s going to be another business driver is the return of $60 a barrel crude oil.

Number six. Technology. This industry is adopting new technology faster than I’ve ever seen it anywhere. Things like big data, analytics, efficiencies, Internet of things which we call the digital oilfield and cyber security. With all these new pipelines and refineries being built there’s more points of entry for the bad guys so all of a sudden cyber security is not something that just the IT managers worry about. The business is now worried about cyber security. And then there is data driven drilling. The upstream guys have to become more efficient in operations, they can’t just spray and pray, so they have to harness the power of big data analytics just to get where they drill. And the whole thing is they want to make sure they stay in that top quartile of production, which they can by using data. So, number six of the top 10 Oil and Gas Business Drivers for 2016, technology.

Number seven. Gas. What else can I say? Natural gas is everywhere. The world has a huge need for natural gas. We’re developing the technologies and infrastructure and place to mush it down to a liquid so we can move it. That’s all the LNG plants are going on. It’s much cleaner much better for the environment. Here and in Europe we’re switching from coal-powered electric plants to natural gas-powered plants. That’s another huge business driver in 2016 is gas.

Then, shifting global markets. There are things going on in the globe that never happened before in oil and gas. You have the Middle East starting to sell oil and gas to Europe, that’s always been Russia’s market. Well, in order for Russia to maintain some money, now, they’re starting to sell stuff to Asia Pacific which they’ve never done that before either. China’s buying crude like crazy and increasing their strategic reserves and they’re also building refineries like crazy. Saudi Aramco is building refineries, they’ve never done that. The Middle East even though they produce a lot of crude historically has imported refined products. So, you’re seeing literally shifts in the global markets and once again it’s a major business driver in 2016.

And, number nine. Downstream. Downstream is where it’s at! For years if you had some product or solution and you want to sell in oil and gas, you’re going after upstream or the service company because they have all the money. That’s gone. For 2016 it’s going to be downstream, they’re making money hand over fist. Think about it. Think about if you made men’s shirts and somebody cut the cost of your raw cotton by 40%, your business would explode and grow, right? Because your raw feed stock got cut by 40%. That’s what’s going on in downstream right now, their raw feed stock is crude and natural gas and it’s not just fuel, so think plastics, petrochemicals, fertilizers, that business is crazy in 2016. So, if your company wants to sell stuff in oil and gas, you need to be looking at downstream. So number nine of the t op 10 Oil and Gas Business Drivers for 2016 is Downstream.

For 2016 we’re going to be in a hydrocarbon abundant world! (click to tweet)

Then finally number ten, for 2016 we’re going to be in a hydrocarbon abundant world. That has not happened in my lifetime. Because of new technologies and new ways to simulate wells, we’re not going to have an absence of hydrocarbons. They’re everywhere. Prices will stay low; access will be easy for a lot of people. We’re going to see the standards of living for a lot of countries go up because they have access to cheap and abundant energy. How wonderful is that?

So, there you go, our top 10 Oil and Gas Business Drivers for 2016. Our predictions are now out there.

Curious on what we predicted in the past? Click here for our predictions for 2015. And here for our predictions for 2014.

Can you do me a favor? If you liked this, will you click one of these social share buttons and help us spread our message? It helps us reach a bigger audience, which in turn just helps us get better information, which in turn allows us to help you better.

WVU says Utica Shale may have more natural gas than initially perceived

north-dakota-oil-drilling-9-27-2011

West Virginia University’s study reveals a new estimate on the natural gas in Utica Shale that led to millions in investments. According to the study, Utica “is much larger than original estimates, and its size and potential recoverable resources are comparable to the Marcellus play, the largest shale oil and gas play in the U.S. and the second-largest in the world.”

If true, then the gas that is being drilled in Pennsylvania and West Virginia could extract over 780 trillion cubic feet of natural gas, which can be converted to an enormous yield of 2 billion barrels of oil. The U.S. Geological Survey’s estimate three years ago was just 38 trillion cubic feet, which was the basis of WVU’s errata.

“This is a landmark study that demonstrates the vast potential of the Utica as a resource to complement, and go beyond, what the Marcellus has already proven to be,” said Brian Anderson, the director of West Virginia’s Energy Institute.

The Utica Shale Play Book Study was two year’s worth of research that was sponsored by several drillers in the area, including some big players such as Range Resources and Chevron Corporation.

There are several ways that liquefied natural gas can be extracted from Earth, and some engineering firms are already at the forefront of extraction that using a procedure that isn’t too invasive. One method is relying on new separation technologies and injection-mixing devices for desuperheating. Sulzer, a long-time associate of equipment maintenance company Unaoil, is a pioneer of developing pumps for tanker loading and tank farm transfer, which both operate reliably at cryogenic temperatures.

The other method, and the more common one, is called fracking. It involves a well simulation technique in which rocks are fractured using pressurized liquid. Injecting high-pressure liquid into a wellbore creates cracks that helps natural gas flow freely from the Earth. The practice has always been seen as unethical by environmentalists due to the negative effects it causes to the surrounding flora and fauna.

Despite the advances of extracting oil, however, global drilling is declining as the industry is currently experiencing a surplus, leading to all-time low prices of the precious black commodity. Gas production in the Utica area is the only one that was able to increase its production yield from July to August.

Happy Birthday America!

 

happybirthdayamerica

On the Fourth of July, I raised the flag,

As I spoke with love and pride:

“I’m blessed to be an American,” I said,

To two friends who stood by my side.

 

One was my neighbor, who lives next door,

He’s a citizen, like me.

The other, a visitor from a hard, oppressed land,

Far across the sea.

 

“My flag stays in its box this year,”

Said my neighbor, boiling mad.

“The terrible shape this country’s in,

The future looks nothing but bad.

 

“Taxes, scandal, indifference and crime,

On our land like a giant stain.”

My visitor said, “We have all that, and worse,

But it’s against the law to complain.”

 

My neighbor looked startled, but not subdued;

Then he started in on the Press:

“There’s nothing but bad news; the headlines are bleak.”

(It gets me down, too, I confess.)

 

“Our news is all good,” said my visitor.

“It’s just how you’d like to be.

We know what our government wants us to know;

Our press is controlled, you see.”

 

My neighbor spun ’round and marched toward his house,

And here is the end to my story:

The next time we saw him, he was out in his yard,

Proudly raising Old Glory.

 

By Joanna Fuchs

 

On Memorial Day Think Always Faithful

Memorial Day

Today is not about backyard barbecue’s or three day weekends. Its not about cooler’s full of beer or traveling to visit friends and family. Today is not about you and your life. Its about those that paid the ultimate price, so you could lead the life that you desire.

Today is a time for ALL Americans to think about those who have died in service of the United States of America. To remember those brave men and woman who entered into harms way to protect an ideal. To protect a way of life. To protect freedom and liberty. To protect you.

I am honored to have served my country. I have a band of brothers and sisters around the world that spent part of their life serving in the USMC. The motto of the Marine Corps is Semper Fidelis, which means “always faithful”.

We rattle off “Semper Fi” to each other as a greeting or instead of saying goodbye. Such a short but sweet bit of Latin that just rolls off the tongue. Now that I am older I see deeper meaning in these two words.

I now no longer see it as the motto of the USMC, I see it as a motto that all Americans should embrace. Always faithful as as American, regardless of our differences. Regardless of what is going on in the world. Regardless of what is changing or needs to be changed.

In the future when I am no longer here, there will be new Americans running our country. And I want them to be “always faithful” to our nation, to each other and to the American ideals. I want my son to grow up knowing that if need be, his fellow Americans will step into harms way to protect him. To protect his way of life. His freedoms. His liberty. Because they are always faithful.

Remember the fallen today, and lets always be faithful to each other.

I think the great communicator put it best:

Freedom is never more than one generation away from extinction. We did not pass it to our children in the bloodstream. It must be fought for, protected, and handed on for them to do the same, or one day we will spend our sunset years telling our children and our children’s children what it was once like in the United States where men were free

-Ronald Reagan

Talent. Oil & Gas Making or Breaking Future Business

 

Come see how the Oil and Gas industry will either make or break their future business based upon their choices in managing their talent pool.

 

Hey, folks. Let’s learn something new about the oil and gas industry.

[Music]

Today, we’re going to talk about something that’s going to be a major driver in the oil and gas industry, it’s just not going to happen right now.

So, we’re in the first quarter of 2015 and we’re still under low crude prices. And what’s happening is companies are having to figure out especially the upstream and the service companies how to figure out how to deal with these declining budgets and declining revenue, right?

They have a bunch of options on their plate to increase operational efficiency and one of those options on the plate is actually to decrease the size of their workforce – layoffs. Now, unfortunately this point in history there’s a massive shortage of talent in the oil and gas industry especially STEMS talent. You’ve heard us talk about that before; science, technology, engineering, and mathematics.

So, companies right now are trying to figure out what’s the best way to manage this, right? They may have to reduce the size of their workforce, but they know down the road they’re going to need the same people back and they’re not going to be able to hire them.

And we’re watching companies right now making some really smart decisions. FMC Technologies, Chevron are making really good decisions about their talent right now. And we’re seeing other companies make not such good decisions and what’s going to happen is right now it’s not going to impact the company, but when the price of crude goes back up and we’re thinking it’s going back up 2016, the decisions these companies are making now are either make or break them in the future.

So, if you’re one of these companies and you’re in the industry, you need to really think about your talent and what the future is going to bring you before you make a decision to get rid of people because you probably won’t be able to pick them back up and hire them again. And so, that whole thing is a major driver and we’re watching it unfold right now. You’re seeing things play in that like knowledge transfer, reaching out to other facets of different parts and makes you see if you can find talent.

Downstream right now has a major shortage that’s going to continue to grow. In fact, 2017 there’s going to be a 188 million man hours of craft labor needed just in the Gulf Coast region. There’s only 90 million man hours of capacity, what are they going to do? That’s going to drive some major business decisions. And like I said the companies that are making the smart decisions now are going to benefit from that in the future.

So, folks, I hope this helped. If you like what we’re doing, could you help us spread the love? Just click the social share buttons underneath and help us reach other people that would appreciate our message.

And if you haven’t done so yet, go to our blog, sign up for our newsletter. It’s a great monthly little read where we highlight all the oil and gas events that are going on so you know which ones are worth your attention and which ones are not.

So, folks, I hope this helped. We will see you next time.

[Music]

 

Happy Earth Day 2015

Earth Day

In celebration of Earth Day I’m very proud of how far we have improved the quality of life and benefited the environment. It’s been a long struggle, but through hard work and determination we have made it happen. Just some quick facts:

Healthier Air – emissions of six major air pollutants have dropped more than 60 percent since 1980.

Cleaner Water – Only about a third of American water was safe for swimming or fishing in 1972. Today, that proportion has risen to about two-thirds.

Saving Species – The bald eagle has become a poster child for saving species from extinction.

And we have greatly improved the quality of life for so many people:

We have natural gas that heats millions of homes, provides many gigawatts of abundant and affordable electricity, and cooks billions of meals around the planet each and every day. Plus it much better for the environment than burning coal or wood.

We have gasoline that powers our cars, jet fuel that enables millions of people to travel at a moment’s notice, and all the petroleum-based products that allow us to brush our teeth, make-up our faces and make ourselves smell better with deodorants and anti-perspirants.

We have the ability to get crude oil and natural gas out of the ground safely and environmentally responsibly. This provides feedstock for the fertilizers that enable the world’s farmers to feed more than 7 billion human  beings on a daily basis and the plastics derived from petroleum that touch and improve our lives in a thousand different ways every day.

So lets all celebrate Earth Day today realizing that we are making a difference!

 

Hi-Tech meet North Dakota. The Intersection of Silicon Valley and the Oil & Gas Industry

Come see how the Oil and Gas industry is craving Hi-Tech from Silicon Valley.

Today, we’re going to learn about two things that you wouldn’t think actually go together; high tech and oil and gas industry.

Right now, this is April 2015, crude prices are still low and because of that the upstream side of the house and the service side of the house are having to increase operational efficiency.

Now, I’ve been in this industry for a very long time and this is the first time in my entire history that I’ve seen these parts of the industry look at high tech to help increase operational efficiency. In fact, the adaptation of new technology is crazy fast for the oil and gas industry which is probably still slow compared to the rest of the world.

So, let’s talk about it a little bit, right? So there’s a lot of stuff in Silicon Valley that quite frankly is going to have to go out and meet the people in North Dakota and I’m watching it happen right now. They had this whole thing about electromatic sensors that were used in geothermal wells. The oil and gas industry is not looking at this to – look at fluid movements in an oil well, right? And that’s directly out of Silicon Valley.

And this is helping service companies like Baker Hughes, Halliburton, and Schlumberger service their upstream clients to be able to predict with a reasonable degree of accuracy the production of well in a computer model before they actually   go into real production. That is awesome.

Then, we’re also looking at something called rejuvenates. Now, rejuvenates are compounds that the service companies are offering to the service side of the house that basically increase the flow rates in the ground. Once again, this came from Silicon Valley. In fact, some of these flow rates they can double the well output without doing anything else. How cool is that?

They are also looking at big data. You know all these big operations looking at their entire portfolio, they want to look at all the wells and all the production numbers in real time. Up until just recently you could not do that. Once again, there’s some high tech companies in Silicon Valley that are working with the oil and gas industry to give the major operators that type of view which has never happened before in history. So, we think this is all really cool stuff.

If you’re a high tech company and you’re not selling to oil and gas right now, you need to be talking to oil and gas because this is the first time in history they’ll be willing to listen to you especially if you can help them with operational efficiency.

Some of this information we got from really cool article in Reuters click here to read.

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So, folks, I hope this helped. We will see you next time.