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To: ckilmer

I am not in the oil business directly but I deal with a lot of the service companies here in SE NM as a construction equipment distributor. My contacts say there is no end in sight but as you know there are many external forces and anything can happen. My business has been “flat” this year with growth of about 8%, but we are still at 250% of what we were doing four years ago, my facility is busting at the seams and I can’t hire enough help. Though, I sense more caution than I have seen in recent years.


5 posted on 07/16/2014 7:53:32 PM PDT by Clinging Bitterly (I will not comply.)
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To: Clinging Bitterly

It looks to me like the oil business will be great with rising production until 2020 and then it will be good until about 2025 as production increases flatten out. But after that the bleed off of demand for oil by natural gas trains trucks and buses plus electric cars will start to collapse the price of oil. That collapse will be a regular year after year thing until oil goes down to at least $35@barrel which on a btu basis is about where coal and natural gas are today. While that will kill new drilling the USA will have so many fracked horizontal wells with long tails and low maintenance costs that production will do a slow glide downward.


6 posted on 07/16/2014 9:54:53 PM PDT by ckilmer (q)
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