The mood at NAPE on February 5 and 6 was marked by as much comraderie as always, with registrations up ftrom last year, and more exhibitors as well. People said they had to attend because their absence would be noted, and no matter what is happening in the industry, they come to catch up with friends and hear the buzz. Many were not seeking nor selling prospects, but instead, looking for JV partners. But everyone was asking the same burning questions: Is this the bottom? What do you think? When do you see it turning up again? There are no major speeches, panelists or workshops at NAPE, so no grand pronouncements from on high were forthcoming to ease anyone's mind or provide insight. Instead, a collective sigh of resignation and maybe, hopeful optimism, was present: "We've been through these downturns before, we know what to do, and we'll be fine. Just got to wait it out." Indeed, we heard all of these phrases at one time or another: The industry is dogpaddling. Treading water. Sitting on its hands. Waiting on the sidelines. Drilling to hold acreage and nothing more. Said one E&P executive, "Drilling costs have come down some, but not enough compared to commodity prices. I think they will come down even more, so I am waiting until April or May to drill my wells." Many are waiting--or need to cut back on their drilling plans for other reasons. The U.S. land rig count has come down to about 1,400, vs. a bit more than 2,000 seen at the peak last fall. (Experts predict more rigs will come down, but that the count may in fact bottom out in April, according to The Land Rig Newsletter.) --Leslie Haines, editor-in-chief, Oil and Gas Investor... lhaines@hartenergy.com
Recommended Reading
Baker Hughes Awarded Saudi Pipeline Technology Contract
2024-04-23 - Baker Hughes will supply centrifugal compressors for Saudi Arabia’s new pipeline system, which aims to increase gas distribution across the kingdom and reduce carbon emissions
Baker Hughes Hikes Quarterly Dividend
2024-04-25 - Baker Hughes Co. increased its quarterly dividend by 11% year-over-year.
Oil and Gas Chain Reaction: E&P M&A Begets OFS Consolidation
2024-04-26 - Record-breaking E&P consolidation is rippling into oilfield services, with much more M&A on the way.
Bobby Tudor on Capital Access and Oil, Gas Participation in the Energy Transition
2024-04-05 - Bobby Tudor, the founder and CEO of Artemis Energy Partners, says while public companies are generating cash, private equity firms in the upstream business are facing more difficulties raising new funds, in this Hart Energy Exclusive interview.
E&P Earnings Season Proves Up Stronger Efficiencies, Profits
2024-04-04 - The 2024 outlook for E&Ps largely surprises to the upside with conservative budgets and steady volumes.