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Pioneer Natural Resources Co. Message Board

  • cyrixborg cyrixborg Dec 22, 2013 11:24 AM Flag

    this cold weather stuff is bs

    cold weather good for oil. why isnt alaskan or north dakota oil nor effected by this cold weather stuff but only texas. this is bs

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    • P.S. North Dakota is definitely affected. There have been several reports of Bakken production being impacted by weather. It's not just the wells themselves but the access to them becomes difficult for trucks with fracking water, maintenance crews, etc when the roads are covered in snow and ice.

    • you can hardly claim that when PXD themselves has issued warning specifically reducing estimates due to this weather. So you're saying you know better than PXD themselves? They already said there will be an impact. On the other hand, it is necessarily a temporary impact and will only affect one quarter. So it's not a big deal in the big picture. Also since they already lowered guidance based on the weather we can assume it is at least partially, if not fully, priced in at this point.

    • I see why you think this, but the difference is that in the Midland Texas area (where the Permian Basin is), there was a surprise deep freeze (temps in the 20's) during the week before Thanksgiving. This was much earlier than expected and PXD was unprepared.

      The Dakotas & Alaskan oil producers prepare their equipment in advance of a freeze by draining water out of them before a deep freeze and/or by keeping equipment warm. In the Permian Basin, they would do the same if they had planned ahead, but they didn't. Unfortunately, this gives PXD's otherwise stellar management a bad grade in this instance because they didn't have an eye on long-range weather forecasts and act proactively.

      Fracking uses lots of water, which can be your enemy in deep freeze weather because some of your equipment gets "fracked" too!

 
PXD
224.14-1.90(-0.84%)Jul 10 4:03 PMEDT

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