Welcome back to another episode! This week’s episode is our First Friday Q&A for January 2020! You ask the questions and we answer them. Big thanks to everyone who wrote in. If you want to get a question answered for next month’s FFQA, click the link below. Enjoy! Have a question? Click here to ask
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Question’s: Hi Guys, I find my self coming up to a cross road and would much appreciate some advice. I’m currently at a high end engineering school on my way to a degree in PE. I now have a chance to switch my major and move from the petroleum engineering focus to something else. I really love the oil/gas/energy field, but at the same time I’m a bit freaked out about all the change away from oil. Seeing the Saudis diversifying away from oil, several car makers betting exclusively on electric mobility, big oil stocks in a slump, lay-offs,etc, etc makes me wonder, if I should make a move now and change to another engineering major. At the same time I hear about oil and gas needing good people and expecting a demographic shortage of engineers in the near future. Not sure what to do… Curious what you think and grateful for a bit of advice.Our country is set to pump oil from Exxon’s offshore Liza field development early next year (there is talk that it could happen in December this year pending weather). 2020 is also the year our country heads into election and oil is a hot topic. My questions are:
- Is political uncertainty likely to affect the production of oil?
- What should a first time producer country expect? Long term predictions are that output would reach 750,000 barrels in 5 years, revenue to reach $631M by 2024 but what does the first year or two of production entail?
Hello, first of all, congratulations for all the great job that you have done. These are my two questions.
- USA has the best price on Natural Gas, what are some of the real threats that could push the price up? Would you make a prediction on when could this price rise?
- You used to say that Oil companies were very clear when anyone would call them “Energy Companies”, would you say that this is still the reality in all the companies or are there all open, as TOTAL for example, to accept being call as energy companies?
Just got around to listening to the podcast from the 28th, and wanted to share thoughts on the discussion you and have had about troops in Saudi Arabia. I have had a few of my military clients sent to Kuwait and Iraq, but also sent to support bases in Germany and Western Europe. I believe it has to do with the Saudi Aramco IPO. U.S. and Saudi relations have always been tricky since FDR, and believe their is still an unspoken bond. With such a strong reliance on oil for the nation, any attack against it once it is public would be a huge setback to the country from an economic and civil standpoint. While private they are able to protect specific information, however as you know, once public there are other factors, stock price primarily, which can be a shock factor for the underlying partners or company. I could go more into detail, but believe this is the main reasoning behind the recent increase in troops.
Hello Mark, Hope all is well and congrats on the success of all the podcasts. I listened to the conference call from Chesapeake 3 times since yesterday and it was unlike the past 12 I have listened to. It was almost as if Doug Lawler couldn’t wait for it to be over and did not go into the detail he is really known for. On the Crestwood Equity Partners CC the other day their CEO took a few minutes to discuss Chesapeake and Lawler at length saying they are years ahead of everyone in the Powder River Basin and was really singing their praises. I will paste one of the things that was said below. I wanted to get your take on it as the street completely decimated Chesapeake after the call and was fixated on a safe warning they put in their filing with the SEC that their lawyers probably wrote. Really I am just wondering if you have any insight on what’s going on with Chesapeake? Below is from the Crestwood CC Robert G. Phillips, Crestwood Equity Partners LP – Chairman, President & CEO of Crestwood Equity GP LLC 29 Yes. Just a couple of notes, and then we’ll have more information as we go through the year and work with our producers in the area. Chesapeake is years ahead of everybody else in terms of delineating the geologic structure out there and understanding the geology of the Turner formation in the Niobrara. If you do the research on the materials they have that’s public, there’s clearly a delineation of the Turner formation into what I think is similar to the 3 windows of the Eagle Ford. There is an oil prone window, an oil and rich gas window and then a gassier window. As it would not surprise you, they’ve been focusing on the oilier window in 2019 because that’s where the best economics come from. Oil prices are, on a relative basis, higher than gas prices out there. Having said that, they’re still in a fairly early delineation phase of those different windows. And to our surprise and excitement, a recent well, a Turner well, that they drilled 2 wells, 2-well pad that maybe we thought was going to be in the oilier year window winds up being in the oil and gas window and gas production at 15 million a day out of 2 Turner wells exceeded anybody’s expectation. So that was very exciting new IP rate for the new pad that we just introduced into the system. We’re spending a lot of time with Chesapeake right now to better understand their 2020 plan. In fact, we’re — I’ve got a lunch with Doug on Friday, and we’re going up there to compare notes. We have largely built out the system. And as Robert said, we’ll finish up the Bucking Horse 2 plant in the first quarter and turn that on. They’ll see better recoveries for NGLs out of that plant versus Bucking Horse 1, which was built by Williams several years ago. Different technologies that will have better NGL pressure and reliability out of that plant. So we’ll turn that on in February or March, and they’ll get the benefit of that. We continue to add compression to the system to bring pressures down, to get the benefit of uplift. And we’ve seen that. Diaco, we had record gas volumes in, I think, early October, what was that?
I am a super fan of the show. I only listened to one episode, and I fell in love with the podcast. Then, I decided to listen to all the 2019 episodes in one weekend to keep up with you guys. I apologize, I can’t leave reviews on the Android podcast app, but the show is amazing. I have a couple of questions. First question: You have been talking a lot about the application of AI on data analysis for the O&G industry. What about process control? Is AI being used in industry for process control applications? I am doing some research on this topic, and I would like to know your opinion. I wonder if you could connect me with an expert/company that is also trying to implement AI for process control. Second question: What is your opinion on Panama’s new 80 TBtus LNG terminal (the first LNG terminal in Central America)? Third question: What are the future technical challenges on hydrocarbon processing downstream in the following 20 years? Fourth question: How hard would it be for a ChemE Ph.D. student to work in the O&G industry as a process engineer or R&D engineer? Are Ph.D. students less attractive? Can students go to your happy hours?
During episode 184 a law student named Douglas asked for some direction about who he could apply to. There is a firm in Meadville pa that has an office there and in Columbus Ohio. I didn’t catch the firms name but i know they cater specifically to oil & gas. Beyond that Bridgeport Wv has tons of energy companies based right there
If I may, a proxy question from me to you for consideration, “in O&G’s quest to digitization/monetizing big data how do we close the gap with small and mid size service companies and integrators (who play a very significant role in the industry), to change habits, move away from spreadsheets, windows XP, take Cyber Security seriously, etc… (i.e all the barriers to data sources that we know exist…) when they have no short-term or mid-term monetary upside to do so?”
I am a new listener to your podcast. Your November Q&A episode is when I found that you are both Marine veterans. I am also a Marine veteran and interested in the oil and gas industry. I was wondering if you had any advice and insight on what it is like being a veteran in this industry?
I’ve been a listener for the last 2 years and have a question in regards to how one can prepare themselves for the OG industry as it changes. To keep it simple, What are the top 5 degrees OR certificates someone can get to make themselves marketable in the future beyond 2020? Guess this could be twofold for someone new coming in and people who are already in that may have a degree. Thanks and keep up the Good Work.
Weekly Rig Count
As of 01/13/2020 – The American Rig count is 809 active rigs.IBM Giveaway
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