rigs keep dropping off

[fjlip]

"Some of you seemed almost happy the oil guys may get hammered",
Do they feel sad when grain/oilseed get hammered, like every year?
No commodity is immune to the whim of billionaires who make $$$ going up or down. There is no profit without price change.

[Braveheart]

I'd rather see the oil patch prosper. It supports a lot in those rural communities including tax base, jobs, community projects, and has helped a lot of young farm people gather up some capital to help start farming.

Why do we have to worry about how anyone else feels if farm commodities suffer? We can look after ourselves.

[fjlip]

And oil patch can't? They better figure it out then. Just stating facts, no emotion.

[Braveheart]

I don't hear them whining. The smaller operators are maybe shutting down. Bigger or more efficient companies are still punching holes.

It's the posters on here cheering some other industries tough times that made me comment.

[foragefarmer]

Braveheart

It's funny how the oil patch was prospering at $60.00 a barrel pre Katrina. Now the sky seems to be falling for them as the price returns to the $60 price again. Look at grain prices from 2007 to now, have they changed at all?

Maybe the oil company's should do a little budgeting and cost cutting like every other business does when times get tough. The oil companies have had one hell of a run for the past eight years. They should have built a huge rainy day fund in that time period. That goes for anyone working in the patch as well. Nothing can keep going up, especially commodities.

I won't even get into what the cattle producers suffered from 2003 to 2012.They had to make ends meet to survive.

I for one know grain and oils seeds have not had a eight year run, and yet many farmers have to adjust, and do one hell job at it.

[Braveheart]

I should hate to say it, but I was proud to call myself a foragefarmer. Through those lean grain times we planted fenceposts. Post BSE, we had up to 200 cows. We were grassfarmers and it served us well. (Still are grassfarmers).

We are back in more grain acres, and the cows are down to 150 as we dumped the leased ones.

I know low prices for grain, oilseeds, cattle,, hogs (18 years). But I know that glee for another industries' misfortune only brings misfortune towards you. Karma can be a bitch.

I know that low prices come often to ag commodities, and we'd like more good weather than usually comes. But, it's ours to adjust to as you stated, Forage. We don't need anyone feeling sorry for us. We have the free will to guide our farms through anything, or throw in with the "woe is me, we're victims" lot. I'll choose the former thanks.

[Braveheart]

Oh, and keep foraging.

[Oliver88]

Precision Drilling is cutting its budget $23 million for 2015.
BNN thinks this is a "bell weather" company and we will see a fair amount of budget chopping.

[Braveheart]

Legacy hasn't changed any plans yet from what I hear. Some service companies are looking to hire to keep up with projected work.

[oneoff]

I'm afraid Legacy is $2.03 a share this afternoon. Down $0.33 in one day. You think they will act as if nothing is happening. Its happening and the carnage hasn't reached maximum yet. Maybe its only hardly started.

Tomorrow it will be less than $2.00 or I'd be very suprised.

Budgets of all oil companies will be slashed....Christmas shutdowns aren't a week away....cost ratcheting of services is underway...and my guess is that very hard times are on for the oil industry; its workers and it will literally be years before the momentum comes back.


Just for instance....look at Precision Drilling's announcement released today. They claim their costs go down to zero when they shut down rigs. That certainly means few or no paychecks for many workers and selling off assets such as coiled tubing units is just the tip of the iceberg of "survival mode".

Costs don't go to zero. Red ink stays red without cash flows and restructuring.