TXP Updates
We’ve moved!
TXP recently moved to a new office space that will give us the room we need to continue to serve our growing client base. Our new digs were built to foster collaboration and communication as we strive to provide best in class service.
We’re also enjoying our bright new conference room which was designed to allow our clients and community organizations to utilize the space should they ever need a Lubbock meeting location!
Lessons Learned from Remote Work Arrangement
Earlier this year, the TXP team joined millions of other workers worldwide who suddenly found themselves working from home. While challenging at first, this experience has brought with it several opportunities to learn and grow.
First, we discovered just how vital good communication is to our success. When we couldn’t touch base with one another in person, our communication style had to change, but we adjusted quickly. Our VoIP service with RingCentral was a tremendous help on this front as we were able to conduct virtual meetings with ease.
Most importantly, teamwork and trust in one another grew stronger while we worked together under less than ideal circumstances.
Today, we’re still learning from this experience. While we hope to never be in a similar situation, we feel confident we have a blueprint we can follow if we are. After all, now we have firsthand knowledge of how best to handle a sudden shift to remote work.
Market Conditions
Rig Count Significantly Down
Over the past year, the Baker Hughes rig count has dropped from 868 rigs to 255 rigs, year over year, as of September 18, 2020. The good news is that market-watchers suspect the domestic rig count may be slightly shifting toward a growth trend. Tom Curran, Senior Energy Services and Equipment Analyst in Equity Research, predicts that the mid-August dip may have been the low point.
Industry pros are analyzing why the rig count dipped even as pricing stabilized.
Well Completion Count Down Further
A recent article on oilprice.com, “Why Fracking Activity Hasn’t Increased As Oil Prices Recovered,” paints a gloomy picture:
It’s been a long dry spell in the Permian. Shale drilling and completions activity has collapsed to levels not seen since before 2000 (as far back as records are kept). That was the year shale activity first began to pick up from essentially nil and hit all-time peaks in 2008.
This will be a crucial number to watch in the coming months.
Could DUC Wells Contribute to a Fast 2021 Start?
While some global producers are turning away from shale operations in response to low oil prices, the US shale output is set to recover quickly. With so much infrastructure already in place and producers deeply invested in the sector, the Permian basin, in particular, can bring back nearly 3,500 DUC wells with “relatively little effort,” according to insights in a recent Argus article.
Bankruptcies Leading to Increased Market Share
Bankruptcies continue to hit the industry, especially for newer market entrants. On the flip side, these losses allow healthier companies to move in and increase their market share. This evolving situation has market-watchers on guard.
TXP Capital Is Your Trusted Invoice Factoring Partner
We’re here to help our clients stay informed with important industry news and our own company updates as we grow. As the industries we serve continue to meet new challenges, our goal is to provide relevant information and to compliment your business with attractive funding and cash flow strategies to help meet your immediate and future growth needs. Stay subscribed and reach out to our team if we can help you or your business explore the benefits of a TXP funding solution.
