• 4 minutes Why Trump Is Right to Re-Open the Economy
  • 7 minutes Did Trump start the oil price war?
  • 11 minutes Covid-19 logarithmic growth
  • 15 minutes Charts of COVID-19 Fatality Rate by Age and Sex
  • 18 minutes China Takes Axe To Alternative Energy Funding, Slashing Subsidies For Solar And Wind
  • 5 hours Russia's Rosneft Oil Company announces termination of its activity in Venezuela
  • 55 mins Trump eyes massive expulsion of suspected Chinese spies
  • 24 mins >>The falling of the Persian Gulf oil empires is near <<
  • 43 mins A New Solar-Panel Plant Could Have Capacity to Meet Half of Global Demand
  • 3 hours Saudi Arabia Can't Endure $30 Oil For Long
  • 9 hours KSA taking Missiles from ?
  • 7 hours America’s Corona Tsar, Andrew Fauci, Concedes Covid-19 May Be Just a Bad Flu With a Fatality Rate of 0.1%
  • 11 hours Where's the storage?
  • 13 mins TRUMP pushing Hydroxychloroquine + Zpak therapy forward despite FDA conservative approach. As he reasons, "What have we got to lose ?"
  • 11 hours Western Canadian Select selling for $6.48 bbl. Enbridge charges between $7 to $9 bbl to ship to the GOM refineries.
  • 13 hours China extracts record amount of natural gas from Gas Hydrates in South China Sea
  • 11 hours Hillary Clinton tweeted a sick Covid joke just to attack Trump
  • 15 hours Wait till America opens their Q1 401k Investment Statements and see they have lost 35% of their retirement savings. They can blame the Authoritarian Chinese Communist Party..
Alt Text

S&P Cuts Oil Nations Ratings

Several oil-producing nations woke up…

Alt Text

Looming Recession Sparks New Oil Sell Off

Money managers sold some 180…

David Messler

David Messler

Mr. Messler is an oilfield veteran, recently retired from a major service company. During his thirty-eight year career he worked on six-continents in field and…

More Info

Premium Content

This Oilfield Service Player Is Looking To Make A Comeback

Introduction

The collapse of deepwater drilling in the Gulf of Mexico, (GoM) beginning in 2014, with no real recovery yet in sight, has spread a lot of misery around the oilfield. Nowhere is that more evident than in the fortunes of Carbo Ceramics, NYSE: CRR. A former oilfield high flyer, Carbo, whose stock crested in 2014 at $154.30 per share, now trades under $2.00 per share.

Yahoo Financial

Their legacy is that of the provision of high technology of crush-resistant ceramic beads used to prop open fractures created in oil and gas formations by hydraulic fracking. This is referred to in the industry as “stimulation”, and is the process by which oil and gas flow is enabled from tight rock formations. The deepwater jobs in the GoM sometimes used as much as a million pounds of the stuff at a time. As in all booms, the industry players lost sight of the general up and down nature of the oil markets historically, and when the bust hit were stuck with too much inventory, and a bloated manufacturing structure. A situation that described Carbo to a T.

The question now before us is, does Carbo have a long term upside that might make a patient investor some money? Or are they a value trap, slated to slide to zero?

The problem with ceramics in the “low cost” oilfield

The onshore oilfield expansion in the shale plays has sucked most of the “oxygen” out of oil company investment coffers in recent times. The…






Leave a comment
  • DouglasBucklang on May 27 2019 said:
    I am confused. Apparently this firm, located in the US, was heavily involved with the manufacturing of proppant. I assume that their product was not specifically designed for offshore applications.
    With the supposedly robust shale oil industry booming in the States and the amount of hydraulic fracturing required to keep that industry viable (and therefore a booming market for proppant), how did they manage to go belly up?

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News