To the amazement of all that watched, Daedalus continues to add rigs, drill more wells, and add production at fruitful levels ….all the while the feathers of Icarus fall and drift towards the underworld abyss of restructuring, asset sales, foreclosure, and refinance. Most importantly, Daedalus is still adding feathers to his wings. Daedalus is still beating his wings with measure and purpose. Daedalus is still growing his production while maintaining a strong balance sheet, low debt to equity ratios coupled with a sustainable hedging strategy of puts and swaps far into the distance. Ironically, despite the low price of oil…. The drag of the markets from Icarus’ descent affected Daedalus as well and he too lost some altitude….But not enough to steal his total forward momentum and Daedalus quickly recovered and continued moving forward on his journey. Icarus couldn’t help but notice Daedalus as his stock price plummeted. Icarus was stunned and in disbelief as his wings melted away and dispersed into the air from broken debt covenants and an evaporating borrowing base that quickly reached junk bond status. Daedalus negotiated lower service costs, purchased his bulk materials directly leveraging his balance sheet, utilized economies of scale, and more importantly continued to optimize his drilling and completion operations through his legendary engineering skills and experience. He was struck with horror.įor you see, Daedalus flew straight and level and as the rig count fell…. The rig count started to fall and this gave Icarus more false confidence, but to his amazement he saw that production was not falling proportional to the rig count. and those cheers and chants filled Icarus’ ears as he surged above the $50 range. “Inventories appear to be shrinking soon.”Ī chorus of false information from the wise ones who had stopped being analysts of reality and soon found themselves evolving into mere “Cheer leaders”. “Production looks like it is starting to fall.” “Increase in demand will compensate eventually in 2016.” The analysts despite the reality of the situation urged Icarus onward proclaiming, The levels surged by millions of barrels in less than two weeks. The heat increased and the high API crude derivative started to melt and the wax from the wings rained down to the surface below in mass proportions and settled into vast holding tanks in the land of Cushing and in product tanks of the refinery’s below. As the altitude increased, Icarus flapped his wings harder and harder and acquired more and more debt to his equity of lift. The heat of the markets rose quickly from $45 to above $50. Instead, he started flying toward the sun on the hopes and promises of $70 oil.
Icarus upon taking off into the sky with his newly constructed wings, ignored the warning from his father that he should fly along the path of $35 oil. In short Daedalus was warning Icarus to not be too complacent nor fly with too much hubris. In addition, he warned Icarus to not fly too high toward the sun less the heat of the markets would melt the wax between his feathers and disintegrate his wings. Upon setting out on their journey towards independence, Daedalus warned his son Icarus not to fly too low to the sea less the water saturation in the air would absorb onto his feathers and his artificial lift would be destroyed. He used the wax to bond the feather s together to create wings they would use to fly to independence. Daedalus built them out of feathers and a wax derived from a high API paraffinitic condensate readily available on the island. He built two sets of wings for him and his son Icarus to escape the island of Crete where they were imprisoned.
The scene depicts the story of “The Flight of Icarus”.Īs the story goes, Daedalus was an innovative engineer of mythical proportions. It does not store any personal data.The picture is a famous portrait by Jacob Peter Gowry who was a Flemish born Baroque era artist. The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. The cookie is used to store the user consent for the cookies in the category "Performance". This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other. The cookies is used to store the user consent for the cookies in the category "Necessary". The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional". The cookie is used to store the user consent for the cookies in the category "Analytics". These cookies ensure basic functionalities and security features of the website, anonymously. Necessary cookies are absolutely essential for the website to function properly.