I Think ProFire would benefit if more attentiom is paid to these gases
I was just thinking about PFIE today after reading this article in this week’s issue of The Economist:
Here are a few excerpts (bolding mine):
The shale firms have proved a lot more resilient, and a lot more productive, than the Saudis and other members of OPEC, the producers’ cartel, had expected…
The big oil multinationals, such as BP, Chevron, ExxonMobil, Shell and Total, have responded to the weaker oil price by cost-cutting, and postponing and cancelling some of their exploration projects… However, the output of the shale firms has proved surprisingly robust, even though they have cut their number of rigs significantly since the peak last October.
One reason for this is canny hedging by some shale producers, which means they are in effect getting paid above the current market price. But many unhedged producers have also continued to pump oil, since the market price is still above the marginal cost of producing another barrel, even if it doesn’t cover the upfront costs of drilling the well. Most important of all, their productivity has continued to improve in leaps and bounds. Wells that used to take 35 days to complete now take 17, says Daniel Yergin of IHS, a research firm. The amount of oil produced per dollar invested will rise by 65% this year, he says. Better seismic data, improvements to the fracking liquids pumped into wells and more intensive deployment of rigs are all helping.
I’ve always thought that it makes a lot of sense for efficiency-minded operators to invest in PFIE gear, and that the company should theoretically be benefiting from this environment. It didn’t seem to work out that way in practice, though. I still wonder if that was just due to initial panic and overreaction, and we’ll begin seeing the company get some real traction as producers adjust to the environment and focus on profitably producing oil at lower prices.
(no position in PFIE)