Can we have fun without $100 barrel oil?
I began my oil career in earnest just about the time oil prices began to climb. The excitement of $85 then $95 and the first time we kissed $100 a barrel was as thrilling as prom night! With oil prices tumbling to an 8-year low I have to ask…is it time to update my resume?
Texas was fortunate that we did not experience the same hardships as other regions during the last recession, but now what. It is easy to panic but panic is not logical and only leads to fear and other poor choices. According to Donald Todrin, author of Successfully Navigating a Downturn believes there is an alternative to panicking and it is confronting change head on. Learning how to take change and make it an opportunity for advancement. I agree wholeheartedly with Donald.
The headlines aside, oil is a commodity and its price has always fluctuated, and to think those days were behind us is naïve. In the past week, I have read some interesting articles. Some have written that the drop in oil was a combined strategy between OPEC and the USA to affect negatively on Russia’s economy. Are they not interested in what happens to my personal economy? Then there are those that suggest we look at the reality of the situation and that we are about where we were with $80 oil. What most of us have not taken into consideration with higher oil prices were higher concrete, steel and other support service fees. Some economists believe that we are just where we were with $80 oil and lower service prices. If those prices fall with oil prices then $80 is looking pretty good.
I am convenienced that TerraFina will thrive in 2015. Yes, I said THRIVE. We are positioned perfectly for just such a move. We are lean and mean as they say. We are carrying virtually not debt, we have made effective use of contract labor thus there is no need to explore “downsizing.” We have effectively managed our operations and taken special care with property/mineral owner’s needs. We have narrowed our approach geographically to a region of Texas that is known to produce good volumes of oil. Whether you are talking about mineral owners or working interest investors, we have always held high service levels; thanks to my hospitality background. Now our focus is on securing properties that will be sold off in this down market at $53 oil; making them very profitable project at $60+ oil.
I have a calm determination to take what others are wringing their hands over, worrying about how they will get through tomorrow, and making it my advantage. This is my moment…this is my destiny… this is 2015 for TerraFina Energy!