The takeaway is the oil market is not actually slowing down. Please note the bolded lines below.
This selloff is a vicious ploy to separate fools from their good investments.
In the energy services industry:
FORT WORTH, Texas, Oct. 10, 2014 /PRNewswire/ — Basic Energy Services, Inc. (BAS) (“Basic”) today reported selected operating data for the month of September 2014. Basic’s well servicing rig count remained unchanged at 421. Well servicing rig hours for the month were 71,800 producing a rig utilization rate of 71%, compared to 74% and 69% in August 2014 and September 2013, respectively.
During the month, Basic’s fluid service truck count increased by 21 to 1,045. Fluid service truck hours for the month were 215,800 compared to 215,100 and 189,600 in August 2014 and September 2013, respectively.
Drilling rig days for the month were 327 producing a rig utilization of 91%, compared to 83% and 74% in August 2014 and September 2013, respectively.
Roe Patterson, Basic’s President and Chief Executive Officer, stated, “Activity levels in September were steady across our footprint. We experienced the normal impact of the Labor Day holiday as well as severe rainy conditions in the Permian Basin and Mid-Continent operating areas which impacted utilization in all segments. Despite wet conditions in mid-September, our stimulation segment maintained high levels of activity as we were able to work at full pace during the weekends in the latter part of September to overcome most of the weather effect in that segment. During the month, we received the final components of our previously announced 2014 horsepower additions. Our contract drilling operations were able to perform at higher levels than we achieved in August. Fluid service truck hours were generally flat and well servicing utilization was lower in September compared to August as these segments were impacted most by the Labor Day holiday and the rainy conditions.
“We now expect our third quarter revenue to be approximately 9% to 10% higher sequentially compared to our previous guidance of 4% to 6%. Revenue from our completion and remedial segment, particularly from stimulation services, was greater than expected as our horsepower additions were deployed in the field earlier than anticipated. Despite the greater than anticipated revenue growth, pricing remains very competitive, especially in our fluid services and well servicing segments as we continue to experience higher labor and other costs.
In the frac sand land:
Houston, Texas – October 9, 2014 - Hi-Crush Partners LP (HCLP), or Hi-Crush, today announced an amendment of its long-term frac sand purchase agreement between Hi-Crush Operating LLC, a subsidiary of Hi-Crush, and Halliburton Energy Services, Inc., or Halliburton. The amendment to the agreement, which requires Halliburton to pay a specified price for a specified minimum volume of frac sand each month, increases the annual minimum committed volumes through December 31, 2018. The agreement continues to provide for further significant increases in annual volumes dependent on Halliburton`s aggregate annual demand for Northern White frac sand.
“Halliburton has been an important partner to Hi-Crush since the inception of our operations. We continue to broaden our relationship with Halliburton by increasing the volumes we sell to them,” said James M. Whipkey, Co-Chief Executive Officer of Hi-Crush. “This most recent contract announcement brings our total aggregate contracted volumes in 2015 to 6.6 million tons. As previously announced, our sponsor has started the permitting process for development of a fourth Northern White frac sand production facility to meet the growing demand for our sand. In addition, we are adding expanded silo storage capacity at several of our distribution facilities to allow for even more efficient delivery of frac sand to our customers.”
Don’t be stupid.