Christmas 2015

Here's wishing you and yours a very Merry Christmas. Whatever your chosen method of celebrating is; I hope it finds you safe, secure and warm.

I would be remiss if I didn't touch on those far less fortunate. In Nigeria, reports say hundreds were killed when a gasoline tanker exploded. In the never ending civil war in Jordan, government troops went on a rampage in Damascus. Their search for dissidents in a mostly residential neighborhood left over 200  dead. A large percentage of them were women and children. Closer to home, rare December tornadoes raging from coast to coast have left many dead and injured in their wake. While I hate mentioning these things, it serves to remind us all just how fortunate we are.

I have to apologize as I have suffered somewhat from writers block this year. The pall that hangs over the petroleum industry has dampened my creative spirit. As I look to the future it appears fuel prices may drop even more, with some saying that $20 a barrel is the new bottom. It also appears that little will happen, pending the next presidential election. In that case; even if the Republicans prevail, we will be looking at another year, at minimum, till we feel any effect down here. That's at least a couple of years till some sort of recovery - if you're counting.

No matter how depressed we may or may not be, we are seeing the results of our efforts at work. We still answer the bell/alarm promptly and conduct ourselves professionally. Only the very best will remain as contractors during this economic downturn. There are many security companies struggling right now, many with way less than half the gates they had this time last year. The owner of the company we contract with has assured us that we'll be the last to go; should it come to that. Kudos to all that work with us at J&G Security as our hard work has resulted in our company getting an exclusive contract with one of the largest exploration companies in the petroleum business. I believe that may just be enough to keep us afloat till the worst passes.

Here's hoping that all of you and yours has a wonderful holiday season and that next year is happy and prosperous for you all!

Selling Ice Cream in the Winter

Oil continues its downward spiral and jobs by the thousands are disappearing. We have an administration that's anti fossil fuel(s) and has no interest in combating OPEC and its policy of flooding the glut market. Working in the industry or living in the oil patch has gotten down right depressing. It's almost impossible not to get swept up in the negativity. I have become a student of geo politics and have followed this decline very closely. However, I never thought we'd see sub $40 a barrel oil, and now it looks like we'll see a bottom of around $20 before it's all over. Folks, there is a concerted effort to kill off oil and coal dependency in the world. In some ways I see the point; eventually that will have to happen. However, to do it now, when alternative sources of energy are still in their infancy and most are unproven, seems ludicrous. Progress has always exacted a toll, but I had hoped that it would not be as sudden or capricious as this. I am seeing the last crash repeat itself over and over; sort of deja vu. Just like before the effect is monumental and, unfortunately, not noticed or appreciated by the masses. Everyone from the service sector; like septic pump out, catering and house cleaning, to management has been affected. We are already seeing some towns board up as the petroleum tax base shrinks. And; just like before, all the infrastructure that supports drilling and exploration is becoming worthless. Soon, getting rid of it will be like selling ice cream in the winter.

Gate Etiquette

Missy and I have established a reputation as being the "go to" guards on problem gates. Give us the rankest, rudest land owner or company man and we'll find a way to get along. Unfortunately, sometimes the problem is with the guards. I have said repeatedly that your gate is for you to control. You have to modify the behavior of those you come in contact with so that things run in a smooth, safe manner. Obviously this is not as easy as it sounds because we continue to hear of problem guards/gates. Like a lot of things in life dealing with people in the conditions we do requires unique individuals. I believe this ability has to come naturally, but can be developed and honed over time. If it helps, you do not technically report to the company man, tool pusher or any authority on your job site. You do, however, have to keep them placated and deal with them in a professional manner. The same applies to the rest of the workforce you deal with. Once complaints get to the company man's level, your time on a gate can be very short. I rather not bore you with particulars, since this topic has been rehashed ad nauseam. However; you'd think simple things like grooming and being polite would be obvious. In this time of production slowdowns and layoffs, it behooves all of us to take personal inventory and see where we are lacking or can improve. Guard companies have always held the upper hand when it came to selecting guards - and even more so now.

Winding Down a Dismal Year

Somehow with the oil glut and crash in fuel prices we have remained employed as gate guards. I am sure the pinch is spreading and affecting many other folks, including businesses dependent on the exploration and production of oil and gas. Like so much these days the real story of the glut is one entangled in "spin" put out by everyone from the media to the folks with the boots on the ground in the oil fields. Back in the day stories without merit (or even truth) were published and known as yellow journalism. I think today's electronic, internet driven media is as bad or worse than yellow journalism. It would be refreshing to have a reliable source of news that was unbiased and accurate. Lest you're wondering what my point is, witness the following. As far back as the gas crisis of the seventies pundits said the world was nearly out of oil. Now we're awash in it? China's economy and its recent slowdown (by the way, how do we know that is accurate?) have also been named as culprits. However, most would be surprised how little our business with China affects our economy in the overall scheme of things. There are plenty of other examples of murky reasoning; but what concerns me the most is the lack of reaction to the goings on in the Mideast. Used to be, the slightest hint of trouble in an oil producing state and gas prices would soar. Fuel prices have remained steady, and even dropped, with all the current upheaval. As contractors in the oil fields of south Texas we have a unique perspective on things. Yet we still are wholly unsure of exactly what is going to happen. The last time oil prices crashed (in the late 70's early 80's), it pretty much shut production down in Texas. In fact, if directional drilling hadn't developed we wouldn't be where we are today. There have been all sorts of rumors; but we do know that rigs are laying down like flies and layoff notices have gone out to a ton of folks. One surprising statistic is that there were over 280 rigs in the Eagle Ford Shale this time last year. Now we're down to under 75 and falling. Understandably this has created a morale problem and the topic seems to surface in almost every conversation in the patch. As a contractor it behooves one to do whatever is necessary to remain employed. It's hard to imagine things getting any worse; short of a shutdown. Traditionally the patch sees an uptick in activity as we roll into the first part of a year. Let's hope that happens in 2016.