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Old 12-27-2010, 04:36 PM
 
912 posts, read 2,557,147 times
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Quote:
Originally Posted by ethanw View Post
Nobody in downstream makes money now days. Upstream is the way to go
What he said.
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Old 12-27-2010, 05:14 PM
 
Location: La Isla Encanta, Puerto Rico
1,192 posts, read 3,483,332 times
Reputation: 1494
Nobody in downstream makes money now days. Upstream is the way to go
What he said.
Quote:
Originally Posted by Grunn View Post
What he said.
While generally upstream HAS been traditionally more profitable in recent decades, you CAN make downstream money today if you play profitable nitches , i.e., the using the price spread between oil and gas to make money with GTL. If you're downstream using expensive oil feedstock you might go broke but you might make lots of money making cheaper liquids from natural gas. (see my previous note).

Last edited by bamba_boy; 12-27-2010 at 05:38 PM..
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Old 12-27-2010, 05:23 PM
 
724 posts, read 1,685,791 times
Reputation: 723
Quote:
Originally Posted by bamba_boy View Post
Why generally upstream HAS been traditionally more profitable in recent decades, you CAN make downstream money today if you play profitable nitches , i.e., the using the price spread between oil and gas to make money with GTL. If you're downstream using expensive oil feedstock you might go broke but you might make lots of money making cheaper liquids from natural gas. (see my previous note).
Can you go into greater detail with this? I would like to learn more.
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Old 12-27-2010, 05:43 PM
 
Location: La Isla Encanta, Puerto Rico
1,192 posts, read 3,483,332 times
Reputation: 1494
Quote:
Originally Posted by TheEconomist View Post
Can you go into greater detail with this? I would like to learn more.
Ever since GTL (natural gas to liquids) was invented by German scientists during WWII when the Nazi's were starved of oil by the latter point of the war, the process was feasable but not cost effective (cost of gas+conversion > natural oil). Therefore refining GTL liquids into products like jet fuel, gasoline, kerocene, and diesel was not competitive with products whose feedstocks were crude oil. Only embargo'd and embattled Nazi Germany and Apertheid South Africa (which greatly improved the efficiency of the process) have used it extensively since. However, there is currently a glut of natural gas, from huge offshore finds in the Middle East and Australia, as well as close-to-home shale gas exploitation in the US. This glut has driven down the price to historically low levels on an energy-equivalent basis to oil and made GTL broadly profitable.
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Old 12-27-2010, 07:37 PM
 
295 posts, read 1,169,259 times
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Quote:
Originally Posted by ethanw View Post
Nobody in downstream makes money now days. Upstream is the way to go
Quote:
Originally Posted by Grunn View Post
What he said.
Downstream projects' looking very good early next year.
Bechtel has a job fair in February for their big project in Australia and will possibly hire hundreds of engineers and designers.
CBI is still hiring with their project in Columbia.
KBR got a big project, not sure if it will still start this January.
I heard Fluor also got onshore projects.
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Old 12-27-2010, 07:56 PM
 
912 posts, read 2,557,147 times
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Where is the easy money at and in plenty at that?

Upstream.

Nice though some of these pipe dreams and possibles sound upstream is where the corn is. I know, I'm reaping it.
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Old 12-27-2010, 08:07 PM
 
295 posts, read 1,169,259 times
Reputation: 154
Quote:
Originally Posted by Grunn View Post
Where is the easy money at and in plenty at that?

Upstream.

Nice though some of these pipe dreams and possibles sound upstream is where the corn is. I know, I'm reaping it.
what made you say that?

offshore EPC engineers make almost the same as onshore EPC engineers. many EPC engineers both have onshore and offshore experience and just move from company to company.
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Old 12-28-2010, 04:29 PM
 
Location: 77441
3,160 posts, read 4,366,895 times
Reputation: 2314
Quote:
Originally Posted by Grunn View Post
What he said.

that means you're both wrong

it cycles, gents.
a year ago we were absorbing upstream people because they had NOTHING to charge to, PDMS people were begging for work. six months later, it was reversed.
traditionally, when downstream is weak, upstream is strong
when upstream is weak, downstream is strong.
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Old 12-28-2010, 04:33 PM
 
Location: 77441
3,160 posts, read 4,366,895 times
Reputation: 2314
Quote:
Originally Posted by Proud2bPinoy View Post
Downstream projects' looking very good early next year.
Bechtel has a job fair in February for their big project in Australia and will possibly hire hundreds of engineers and designers.
CBI is still hiring with their project in Columbia.
KBR got a big project, not sure if it will still start this January.
I heard Fluor also got onshore projects.

Fluor has a $50 BILLION USD project signed. They will start recalling people in 1Q-2011.
Mstang is about to turn the corner also.
Foster-wheeler signed some petrobras work also.
even scum-bucket Technip has a lot of upcoming work.
since cap and trade is a no-go, look for the petro-chem DOWNSTREAM to explode 2011...
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Old 12-28-2010, 04:39 PM
 
Location: Sugar Land
2,465 posts, read 5,792,835 times
Reputation: 2733
Just wishful thinking Good luck.... I am with the blue boys at SLB and I get to see it all all over the world.... All big boys either got out or are in their way out from the downstream business ... That is not where the money is....

Quote:
Originally Posted by Bily Lovec View Post
Fluor has a $50 BILLION USD project signed. They will start recalling people in 1Q-2011.
Mstang is about to turn the corner also.
Foster-wheeler signed some petrobras work also.
even scum-bucket Technip has a lot of upcoming work.
since cap and trade is a no-go, look for the petro-chem DOWNSTREAM to explode 2011...
Reply With Quote Quick reply to this message
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