Friday, December 18, 2009

Will the oil field pick back up in 2009?

my husband is in the oil field industry. He's a stabber on a casing crew and he hasnt been called out for two weeks now and i'm getting worried that maybe the oil field jobs are done with for good. when are the rigs coming out of the weeds and being put back up?Will the oil field pick back up in 2009?
The oil fields will hold good very soon ,,,,





Regards,


http://www.dodjit.comWill the oil field pick back up in 2009?
No one can really tell when its coming back. Rig counts have dropped off more than 50 percent since the end of August last year.. Natural gas prices determine drilling and oilfield activity and prices are very low right now. High oil prices should stabilize the business, but it wont increase it much. It wont come back strong until natural gas prices increase, and inventories decrease. And I think thats going to be 2010 or later.. We have huge amounts of natural gas in storage and it usually increases in the summer months. With huge inventories and a weak economy I dont see the oilfield picking up significantly for a year or two. I grew up around the drilling business in several different states. So I can understand how you feel. Its always been a cyclical business. Busts happen about once a decade. It happened in the 60s, 80s and 90s. It skipped the 70s because the embargos and shortages kept prices up. We paid for it in the 80s with one of the worst busts. Some people, who had worked in the oilfield for decades left the business never to work in it again in their careers. And some of the largest and oldest companies went out of business. And a few banks. This bust is the worst since then. The oilfield isnt dead, its just dormant..





Here is an article on the subject from the Drilling Contractor magazine.





http://www.drillingcontractor.org/forums鈥?/a>

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