Latest Thoughts

Sometimes You Need To Take A Breather

Nothing can go up and to the right forever, especially not the rig count. The US onshore rig count fell back by six units this week. This break is actually a good thing and we explain why and break down the weekly rig count in in this post. To read …

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Another Day, Another Permian Deal

WPX Energy joined in the Permian deal making fray, announcing a $775mm Delaware Basin acquisition late Thursday. 2017 operating plan announcements from Permian Independents aren’t the standard fare this year. We are used beginning of year E&P operating plans stating capex, production, and drilling program summaries. This year they are …

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Five Innovation Themes In Completions For 2017

In a related update published last week, we described how the brute force enterprise of nano-darcy E&P is becoming more elegant. Elegance is achieved as sub-surface understanding moves closer to a realistic picture of the reservoir. Enhancing sub-surface understanding is where leading innovators in shale are focused today. They are …

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One Of Our Buyers Makes A Deal

Last week we published a list of four companies we expect to make oil service acquisitions during 2017. Apparently grass isn’t growing under our buyers feet – less than a week after our preview, one of them has already made a purchase. To read this update and receive our research newsletters, you must …

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Here Come The Guidance Raises In Oilfield Services

In an interim update posted this morning, oilfield chemical supplier Flotek positively revised its outlook to account for a more constructive US drilling and completions market as 2016 winds down. Last week we wrote about how the consensus 4Q slump is a no show this year. Flotek’s announcement provides confirmation and …

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The O&G Job Creation Engine Is Firing Again

In the US, the O&G industry has begun to hire staff again for the first time in two years. We snapped this encouraging photo in front of a Halliburton completions yard while touring the Permian Basin in early-December. Source: InfillThinking.com Given what we know about the ongoing recovery and a …

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Joy To The Oil & Gas World

This holiday season is the most jolly in years for the oil and gas business. It finally feels like the tide is turning on many fronts. One Year Ago, We Predicted Everything Would Bottom In 2016 Exactly one year ago, we wrote the following outlook for another shop: As realists, we have …

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In Offshore Drilling, Financial Restructuring Quietly Chugs Along As Noble And Shell Arrive At New Terms

Even when offshore drillers aren’t tapping the capital markets for debt or equity, financial restructuring is quietly continuing behind the scenes. Contractual terms continue to be renegotiated with customers, and price concessions are still being given. Literally hundreds of multi-year contracts that were in effect this time two years ago have …

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What Fourth Quarter Slump?

Back in October, the North American land market was bracing for a seasonal slowdown into year-end. Here’s the warning Halliburton CEO Dave Lesar issued on a conference call about 6 weeks ago: “Based on current customer feedback we remain cautious around customer activity due to holiday and seasonal weather-related downtime. Our customers …

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Atwood’s Drillship Mortgages Are An Industry First

Offshore drilling contractors have been signing deals with shipyards to delay taking rig delivery for several years now. With no visibility on work, it’s better to leave rigs on the docks where they took shape than to store them somewhere harsher. This morning Atwood announced a delay deal on a pair of …

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There’s A New Anti-Frac Movement Brewing. It’s Leaders Are O&G Industry Insiders

Since inception, hydraulic fracturing and shale exploitation have been fraught with controversy. Initial opposition mostly came from the far left and environmentalists. So called “fracktivists” include bands of protesters, lobbyists pushing for regulation, and filmmakers documenting mythical terrors. These outsiders have presented challenges for the industry ranging from mild annoyances to outright banishment …

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Permian Preview: 2017 Capex And Production

The biggest regional contributor to the US Shale Revolt will be the Permian Basin. The Permian is the only unconventional oil play where production has not fallen in the downturn. In fact, Permian production today is up 13% since that fateful OPEC meeting two years ago. Following it’s conventional production …

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Weatherford Captures The “Bernard” Effect By Raising A Billion Bucks In 24 Hours

On Wednesday morning (11/16), Weatherford sold 84.5mm shares at $5.40/share in a registered direct equity offering for $456mm. Last week, Infill Thinking predicted that Weatherford would raise equity capital following the stock’s 33%+ gain on CEO Bernard Duroc-Danner’s departure. The market reacted positively to today’s equity raise, Weatherford’s stock rising another 3% …

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