Hello, API Members!
Another month has gone by and we are still where we were a month ago. I was hopeful that the favorable results of the COVID-19 scare would have enabled Kern County to get busy again, and we would be able to meet in May. But we have had to cancel our May dinner meeting because our state is not opening up for us. Now I am hopeful that we can have our June meeting, which is our traditional scholarship night. Let us all hope and pray for a swift and safe resolution of this unprecedented business lockdown and stay-at-home order, so that we can get back to business.
And speaking of business, it is a tumultuous time for our oil business. For the first time in my lifetime I saw the oil futures of WTI Crude go into a huge negative for May contracts (-$37 per barrel) for one day. I do not know how that actually played out, but it could not have been good for anybody concerned, and the futures contract for June actually came back to $10 per barrel the next day and has increased since then. We also saw Midway-Sunset crude prices dip down below $11.00 per barrel on April 28, 2020. It has since come back to the low twenties per barrel, but has our local industry trying to find ways to just hang on until demand for oil comes back and the oversupply is diminished. Capital spending is being slashed, operating costs are being cut by producers and many wells are being shut in as uneconomic, with the fallout landing on the service side of the business. I have been through hard times in the oil business before, as have most of you. We came out of it before, and I hope that most of us can survive this latest rough patch in the oil patch.
We at the SJV Chapter of API are optimistic and still have some events planned for you. As you probably know, we have rescheduled our annual golf tournament for August 7, 2020 and have our fingers crossed that we will be able to get together and do this event in August. Everybody that signed up for the golf tournament that was scheduled for May, is still signed up for the August rescheduled event.
We still have our Fall Fun Shoot scheduled for October 2, 2020 and have the entry forms out right now. You can sign up for that event on our website here: 2020 Fall Fun Shoot. It may seem a little early to be planning on another event, but we are planning on it and hope that many of you will be able to sign up and join us for this fun event.
I realize that hope, in and of itself, is not a plan, but without hope, we become hopeless. So, let us never lose hope in ourselves and our industry and our country. We will be back.
I love to hear your feedback. Please feel free to call or email your comments or suggestions to (661) 330-0423, firstname.lastname@example.org, or email@example.com.
In the meantime, stay safe and keep your heads up. We will get through this!
I look forward to seeing you all at the June General Meeting!
2020 API Chairman