The 7 months after Anadarko announced it was buying KMG and WGR in ‘06 were pretty eye opening for the young engineer named DRW. I was in Calgary; I loved my job so much (it is hard to remember how young I was) and all my friends were people I had met at work. And then... it happened. June 24, 2006. We announced we were buying not one but two companies for $21b cash! Even though I had nothing to do with it- I was so...

“Nothing to see here... Please Disperse!”  It’s been 16 days and true to their word, Saudi Arabia ensured the world oil market didn’t miss a beat.  As a result - the ‘disruption risk premium’ was re-set at $0/bbl and that chapter has been closed. The timing couldn’t be better (or worse depending from whose perspective): the last day of Q3 is today; most companies have been running iterations on the 2020 budget and that means management teams have realized that a) oil price isn’t going to...

After months of negotiations, reduced service and special assignments - the Chrysler Town and Country (aka ‘Big Blue’) has elected to retire.  Said DRW: “It’s a sad day but his performance had declined to such a level, I could no longer be convinced of Big Blue’s ability to deliver at the level I expected.  Lease roads are tough on a minivan and really- it probably wasn’t a great fit for his skill set. After deliberations with the board, we felt it was in the best interest to...

I think that we should get the engineers at IKEA to solve climate change.   If they can figure out how to break down a room of furniture into 13 boxes and have the customer put it together with just wooden dowels, screws, an allen key and pictures, surely they can fix global warming.  #hottakeoftheday

I like words. It’s why I'm not on Twitter. 280 characters is barely an intro. If you disagree- DM me. So- in Part 4 (the conclusion)- I’m excited that I need only one word to summarize my optimism for the future of O&G: Activism. #hottakeoftheday (280)

On Wednesday, the Fed released it’s energy survey for Q3. Not surprisingly, it posted the worst readings since ‘16.  In today’s post- we face facts. Q4 will be far worse than Q3. I’ll say it again for effect: FAR WORSE. At least 100 frac crews have idled since the spring; HZ rigs are down 180 and are almost at my 700 target; companies HAVE to hit or beat their ‘19 capital so will slow further and there is no new capital coming into the industry for...

The ingenuity of mankind and the proliferation of our ideas are simply breathtaking but like anything- there are side effects to our innovation. The Manhattan project brought with it the ability to end war and power the world while simultaneously creating the ability to destroy it. Acid rain- the result of the boom in industrial activity was addressed and dramatically reduced with the Clean Air Act of ‘90; the Montreal protocol of ‘87 addressed the use of CFCs in refrigeration when they were found to be depleting...

Starting a discussion on the future of energy with WeWork may be unconventional but it’s topical as a stark contrast to our business. If they can ‘Elevate the world’s consciousness’ it’s probably safe for us to say ‘Powering the World’. But even in the age of ESG- we don’t. We are focused on the survival of our business, not fancy slogans. But- it’s hard not to notice a $47b valuation for a company that has never made a profit and would have made it larger than...

This week, the ‘hottake’ will pivot to a place I haven’t gone before: optimism! And despite the way some have interpreted “The Beatings” and “Peak Oil USA”- they are part of a broader discussion.  A discussion of transition; of hope; and of “What Comes Next?”.   Hamilton fans will appreciate this week’s tie to last week’s edition of “You’ll be Back” and be savvy to the fact that musicals often use the same score to share related, but different messages. Longtime readers of my hottakes will know...

To all my friends impacted by the tropical storm that decided to visit and outstay it’s welcome in Houston this week: I hope everything is back to normal and I’m sending you good energy. To everyone in Investor Relations: if I read that you have blamed the storm for your missed production targets in Q3 - I am coming for you.  I am long overdue for an edition of “Press Releases That Make Me Laugh!” While we are calling out where the bull went #2- I’m on...