Wednesday, July 25, 2012

When the Going Gets Tough, The Tough Get Going -- Something Is Happening, and You Don't Know What It Is

When I pulled up today's NDIC daily activity report and I saw twelve new permits with BEXP and KOG at the top of the list, the first thought that flashed across my mind: "when the going gets tough, the tough get going."

There's been a lot of hand-wringing lately over price of oil (now below $90) and the cost of completing a Bakken well. And then we see another day with double-digit new permits led by Bakken stalwarts. (And, giving credit where credit is due), we saw similar examples with WPX, CLR, QEP,  in the last week or so.)

And then I think: something is happening, and I don't know what it is ...

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The Ballad of the Thin Man, Bob Dylan
 
I don't know what it is about Bob Dylan. There are times when I really don't appreciate him, but then, every once in awhile, I hear another Dylan song that reminds me what a great poet he really is/was.  I never paid much attention to "The Ballad of A Thin Man" until I heard the cover by Ben Weaver on a Mojo tribute that I picked up a long, long time ago.

4 comments:

  1. Bruce,

    With the hedges some of these companies have in place, don't they need to keep drilling?

    ReplyDelete
    Replies
    1. I don't have a business degree, so I can't comment. Smile.

      The point I was trying to make was that -- well, I guess two points -- first, when the going gets tough, the tough get going. We keep seeing the same names pushing the envelope despite the challenges. I remember selling dictionaries door-to-door in another life: our "leader" told us that folks could always find a reason not to sell and/or not to buy. But the tough press on.

      The second point, we'll see which companies in the Bakken are left standing five years from now. Should be a wild ride.

      Delete
  2. They can sell the hedge at a profit. No need to have real oil.

    anon 1

    ReplyDelete
    Replies
    1. I've always said it's "all about the business." No matter what business one is in, making widgets, or selling oil, it's all how you manage the business.

      Delete

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