The Drilldown: in-depth answers to oilfield questions | w/ Richard & John Spears

Operators and oil service firms have been reporting their Q2 results and what they expect to happen over the near term. Richard and John discuss their key takeaways about activity and the implications across the supply chain.

Richard and John discuss the implications for the US oilfield arising from the lack of oil company M&A activity

Richard & John crack open a book on occasion - what kind of books are we reading and what do we recommend?   Produced by Charlie Spears

We discuss the outlook for US crude production under various price/capex scenarios and speculate about the assumptions underlying the EIA forecast of US oil output.

In response to listener's questions, Richard and John discuss the factors that drove the recent merger between Keane Group and C&J Energy Services. How will this affect competition in the oilfield service industry?   Produced by Charlie Spears

Our mid-year review! Last January (Ep96) we made some predictions for 2019. How are we doing? This episode we talk crude price volatility, Weatherford, and average frac sand per well. Episode produced by Charlie Spears

While the average breakeven price is often cited for understanding which plays are most profitable, the range of breakeven prices within a play is less reported. Richard and John discuss how the range of breakeven prices from high to low is useful to understanding how much activity might rise or fall as price expectations move up or down.

What would next month's US production look like if we stopped drilling wells today? John describes how new wells are masking steeper domestic production declines. Can the US keep up with the high demand for new wells?   Produced by Charlie Spears

A brief departure from our normal podcast. Today we remember those who have sacrificed for our country. "In Flanders Field" by John McCrae   "In Flanders fields the poppies blow Between the crosses, row on row,     That mark our place; and in the sky     The larks, still bravely singing, fly Scarce heard amid the guns below.   We are the Dead. Short days ago We lived, felt dawn, saw sunset glow,     Loved and were loved, and now we lie,         In Flanders fields.   Take up our quarrel with the foe: To you from failing hands we throw     The torch; be yours to hold it high.     If ye break faith with us who die We shall not sleep, though poppies grow         In Flanders fields."

As a group, ROE for publicly-traded US operators rose to a five-year high in Q4 2018 as production increased and cost per barrel held steady. But the overall results were skewed by the good performance of the largest operators, as smaller firms remain under pressure to cut spending. Richard and John discuss how the financial health of US operators resembles the problems faced by the EU in stimulating its economy.