(Paul Levy of Seminole, Oklahoma is a 2nd generation oil man, and has been brokering used oil and gas pipe for over 30 years.)
Oil is going higher!!!
Despite prices seemingly stuck in the mid 60’s, my indicators say we will see higher oil prices as more of the population gets a vaccine. My ‘beat’ is Oklahoma, Texas and Kansas… and right now almost all my pipe action is coming from the Permian Basin and from the state of Oklahoma. Steel prices have shot to the moon and it seems there is no relief in site. Good used tubular goods are in demand and bringing a premium.
Lately I have seen more demand for 2 3/8 inch tubing then any other pipe. And no one seems to have any 2 7/8 inch pipe available. Last week, I was able to purchase a hundred thousand feet of 5 1/2 used oil pipe, and three different drillers all wanted it immediately.
As we enter into the warmer months, I anticipate any used hardware for drilling operations is going to get more expensive.
At your service,