The Oilfield in 2020 - Sequeira Partners · The Oilfield in 2020 The 10 questions you should be...
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The Oilfield in 2020 The 10 questions you should be asking yourself Richard Spears Spears & Associates [email protected]
Transcript of The Oilfield in 2020 - Sequeira Partners · The Oilfield in 2020 The 10 questions you should be...
The Oilfield in 2020The 10 questions you should be asking yourself
Richard SpearsSpears & Associates
18%
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8%
19%
12%8% 9%
-27%-32%
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-40%
-30%
-20%
-10%
0%
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20%
30%
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Global Oilfield Annual Percentage Change
$0
$40,000
$80,000
$120,000
$160,000
$200,000
Mill
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sMarkets By Type - OMR Historical
Exploration Drilling Completion
Production Cap Eqpt & OS
How influential is Greta Thunberg?
How influential? Oh! Canada?
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The hypocrisy of climate fear mongers
The hypocrisy of climate fear mongers
Climate emergency: we’re all gonna die! No compromise!
How influential is Greta Thunberg?
She represents hypocritical oil opponents who are bad at both physics AND economics and who see no reason to compromise because we’re all gonna die!
Can my President & your Prime Minister stop frac?
This is what the oil industry calls “frac”
This is what everybody else calls “frack”
They are against the ENTIRE industry
All are against “fracking”
All are against “fracking”18
All are against “fracking”19
And if he/she does stop frac, what next?
The Fifth Amendment to the US Constitution
The Fifth Amendment to the US Constitution
Is 2019 like 1982? Or 1986? 1992? 1999? 2002? 2009? 2015/2016?
Consider this:
Demand Growing?
OFS Healthy? Limited Oil?
1982 No No No
1986
1992
1999
2002
2009
2015/16
2019
Consider this:
Demand Growing?
OFS Healthy? Limited Oil?
1982 No No No
1986 Yes No No
1992 Yes No No
1999 No No No
2002 Yes Yes No
2009 No No No
2015/16 Yes No No
2019
Consider this:
Demand Growing?
OFS Healthy? Limited Oil?
1982 No No No
1986 Yes No No
1992 Yes No No
1999 No No No
2002 Yes Yes No
2009 No No No
2015/16 Yes No No
2019 Yes No Yes
Investors convinced oil
is finished
So no extra oil doesn’t
matter
How “gone” are institutional investors?
SLB – the darling of Wall Street – is worse than ‘16
Should oil companies be worried?
Should oil companies be worried?
This is the battle of the balance sheet. Positive cash flow wins…it is the only metric.
Should service companies be worried?
Should service companies be worried?
This is the battle of the balance sheet. Positive cash flow wins…it is the only metric.
Is “factory drilling” the right metaphor?
Is “factory drilling” the right metaphor?
What would an industrial engineer say if “SPEED” was the primary metric being measured?
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2014 2015 2016 2017 2018 2019 2020
Canada New Wells Drilled
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10,000
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2014 2015 2016 2017 2018 2019 2020
US New Wells Drilled
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