Author Archives: Jeremy Kirkpatrick

Steady as it goes for Permian Basin rig counts

Steady as it Goes for Permian Basin Rig Counts

How Rig Counts Indicate Oil and Gas Economic Health

Since 1944, Baker Hughes has been supplying data on rotary rig counts to give insight into the economic health of our energy industry. Beginning in 1975, the company started providing monthly international rig counts, which offers a more in-depth look into the drilling industry. Baker Hughes Rig Counts has been consistent for more than 70 years and is considered a good measuring tool for demand. The active rig count is also a leading indicator of the number of products used in drilling, completing, producing and processing hydrocarbons (oil and gas).

Let’s look at the most recent summary count from April 2019:

We know that the oil industry is a never-ending cycle of highs and lows, and this latest report shows U.S. oil rig counts are a bit unsteady. According to an article published by Reuters, U.S. energy firms reduced the number of oil rigs operating to the lowest level in almost nine months.

Why the slowdown in oil drilling?

It may be due to independent exploration and production companies cutting spending to focus on earnings growth instead of simply upping output. It’s projected that crude prices will drop going further into 2019, so firms are bracing themselves for the change.

For the Permian basin however, numbers are holding steady compared with the rest of the country. The Permian Basin’s active rig count is staying steady at 459, down one from the prior week and up one from the prior year.

That’s good news for Texas and both the businesses and families impacted by the ebb and flow of the energy trade. We have a vested interest in the economic health of the industry, that’s why we thought we’d pass on this bit of information to our customers and friends. Be sure to stay up to date on the issues that matter to you by checking out our blog.

If you ever need help selecting the right cutting tools, abrasives or safety supplies, contact M&M Sales & Equipment. We’d be happy to help.

Guhring SelectMill

New Product: Guhring SelectMill for Optimal Price and Efficiency

Guhring is a world-class manufacturer of drills, end mills, taps, tool holders and other innovative cutting tools and has been for over 100 years. Since they began production of tools in their Wisconsin facility in 1982, they’ve been busy bringing industry-leading Guhring technology here to the United States.

Another interesting fact is that they actually produce their own carbide rod as the substrate material for all of their carbide end mills. That attention to detail and commitment to quality is why we believe so strongly in their product lineup and wanted to share their latest product release with you. 

Introducing the new SelectMill German-made carbide end mill from Guhring

SelectMill is a new program of German-made carbide end mills ideal for the customer looking for a high-quality and low-cost option. These universal end mills are designed to excel in a wide range of materials and are crafted for shops with shorter production runs or who are machining different materials on a day-to-day basis.

Their competitive price tag comes from years of expertise manufacturing high-performance tooling. The result is a streamlined manufacturing process that delivers maximum performance at a reasonable cost.

The SelectMill offering includes:

  • 2, 3, and 4-flute general purpose tools in “standard” and “long” lengths, with FIREX heat-resistant coating
  • A series of 3-flute aluminum end mills that extends the range of materials possible to machine with SelectMill
  • For roughing operations, SelectMill offers a roughing end mill with a fine-tooth knuckle profile, and 3-4 flutes depending on diameter
  • High performance 4-flute variable helix end mill completes the SelectMill offering

M&M Sales and Equipment is committed to being your go-to source for all your cutting tools, abrasives, safety supplies and more. If you’d like to learn more about the Guhring line of end mills or just have questions, contact M&M Sales and Equipment today.

Learn more about Guhring’s SelectMill Program.

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See Dormer Pramet Metal Cutting Tools in Action (Video)

At M&M Sales and Equipment, we’re always on the hunt for innovative products that can save our customers time and money.

Dormer Pramet is one of the oldest specialist manufacturers of engineered cutting tools. Dormer Pramet has been a game-changer when it comes to their selection of cost-effective metal cutting tools.

With their combined 150 years of industry experience, we feel confident showcasing Dormer Pramet’s expertise and products. Have a look at these innovative products that help you take control of your difficult cutting materials:

Hydra High-Performance Replaceable Head Drills

Dormer Pramet introduces the Hydra High-Performance Replaceable Head Drill. It’s made from tough micrograin carbide and a hardened steel body that makes it resistant to wear and corrosion. Plus, one body fits multiple heads for multiple materials — saving money in inventory costs and overhead. Other impressive features of this drill include superior hole surface finish, efficient coolant delivery and reduction of forces when it exits the workpiece.

Hand Drilling HSS Stainless Steel – A108 Drill

Do you find that your industry-standard drills blunt quickly and have a hard time penetrating stainless steel? If you find yourself going through more drill bits than you’d like and constantly having to stop drilling to lubricate, you’re going to want to look at this. The A108’s material-specific geometry cuts through stainless steel, making hand drilling easier and faster than ever. And its steam-tempered finish delivers improved wear resistance, saving you expensive replacement costs.

M&M Sales and Equipment is committed to being your go-to source for all your cutting tools, abrasives, safety supplies and more in West Texas, with locations in Odessa, Lubbock, Amarillo and Ft. Worth. If you’re interested in discovering whether Dormer Pramet is the right solution for your facility, contact M&M Sales and Equipment today.

2019 Oil Forecast in West Texas: Boom Expected to Continue

West Texas is experiencing yet another comeback within the boom-bust oil industry. The revitalization is welcome to residents and businesses alike who hope activity continues to build on economic improvement through the region.  

Just 10 years ago, West Texas was dubbed a “dead area” by many in the oil industry. But today, oil pumps churn from countless oil wells throughout the Permian Basin. According to the U.S. Department of Energy, the Permian Basin is expected to produce 3.9 million barrels of oil per day (bopd) in 2019. That accounts for about one-third of all crude oil produced in the United States and the numbers are expected to grow, reaching over 9 million bopd by 2021.
 
Domestic numbers are expected to keep increasing, with the potential to reach a record 14 million bopd by late 2021, according to the U.S. Energy Information Administration’s Annual Energy Outlook (AEO 2019). The bulk of that growth comes straight from the Permian Basin, an area that covers more than 75,000 square miles in West Texas and Southeastern New Mexico.

The reason for this massive growth? The Permian Basin has benefited from technological improvements and more cost-effective hydraulic fracturing that allows producers to extract more crude oil from the shale formation. A recent report by CNBC has pipeline capacity increasing triple-fold by 2021, from 3 million to 9 million pipelines. The increase in capacity should help unclog the transportation bottleneck the Permian Basin has been battling, helping producers move more oil into the Gulf Coast and on to refineries and ports worldwide.

As crude oil production increases and domestic consumption of petroleum decreases, the AEO 2019 report also anticipates the U.S. will become a net energy exporter by 2020. In fact, the U.S. will likely pass Saudi Arabia and Russia as the world’s leading oil producer. But it’s important to remember that wells dry up rather quickly and require more drilling to keep pace, so technological improvements must remain a major consideration. 

What this means for West Texas Oil & Gas

Short-term “man-camps” are springing up everywhere and flashy new billboards dot the highway, advertising Rolexes and other high-ticket items to oil workers pulling in six-figure salaries. 

Compared with Gulf Coast barrel prices, oil in the center of the Permian Basin (Midland and Odessa) is priced lower but steadily climbing. West Texas Intermediate crude rose from $56.79 a barrel in the beginning of March and rose to just over $60 by the third week, while Louisiana Light hovers just over $68 a barrel.  

It’s not hard to remember the effects of falling oil prices in 2016. Many workers in West Texas were displaced when prices dropped to $30 per barrel. The drop led to massive layoffs and declining rig counts. Fortunately, rising oil prices are a good sign for employment rates and wages. Entry-level jobs are boasting $15 an hour pay with full benefits packages, but motels have jacked up the rates to hundreds of dollars a night. Food and housing costs are also soaring.  

With any boom, the threat of a bust is always on the minds of Texans, but local officials and industry executives think it’s different this time. The advances in fracking has made oil extraction possible in areas deemed impossible in prior years. Now the problem isn’t finding oil, it’s making sure the infrastructure is there to handle the amount of oil and gas that’s being extracted.  

At M&M Sales and Equipment, we support our local communities, oil workers and the businesses that supply them. That’s why we believe it’s important to keep our fingers on the pulse of what’s happening in the industries that impact us all. Stayed tuned here on our Blog or visit us on social to stay up-to-date on the industry news that matters to you.  
 
We are your cutting tools specialists. Since 1962 we have been here to help you increase your profitability and productivity. Have questions? Reach out to us by clicking here.  

Metabo Logo

Metabo: 2019 Grinder Madness – through April 30, 2019

From March 1-April 30, 2019, enjoy savings on Metabo German-made Safety 4 1/2″ Angle Grinders. Promotion includes:

Metabo Promotion - 2019 Grinder Madness
  • W 9-115 with lock-on switch (Grinder Madness price: $84)
  • W 9-115 Quick with lock-on switch and quick wheel change (Grinder Madness price: $89)
  • WP 9-115 Quick with non-locking paddle switch and quick wheel change (Grinder Madness price: $89)

Features:

  • Last longer
  • More productive, with quick tool-free wheel change system
  • Enhanced safety, with the S-Automatic Mechanical Safety Slip Clutch and non-locking paddle switch

Give us a call at your preferred branch location:

Download the Metabo 2019 Grinder Madness flyer now.

Contact us for more information.

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Sandvik Coromant Logo

Discover the Newest Sandvik Coromant Tools for 2019

Like you, we believe that a job well done requires reliability, experience and innovation.

It’s why we partner with industry leaders like Sandvik Coromant to ensure you get the quality and reliability you can only find in well-crafted tooling technology. Take a look at the latest cutting tools, solutions and updates from Sandvik Coromant, the leaders in tooling manufacturing. Questions? We are your West Texas experts on Sandvik Coromant. Give us a call today at 800-592-4516

General Turning

The newly updated CoroPlus® ToolPath for PrimeTurning™ helps you optimize your tool path and secure maximum output. The software provides programming codes, correct grade, geometry selection, cutting data recommendations and supports profiling and facing for external turning, as well as longitudinal turning. Its easy-to-use, intuitive interface takes the guesswork out of maintaining a correct tool path, which means you get maximum tool life and process security without compromising productivity.

Sandvik Coromant Coroturn Prime Insert for Turning
Sandvik Coromant Prime insert for all-directional turning

The CoroTurn® Prime insert for all-directional turning is your solution for chip control in ductile materials. It’s ideal for use in finishing to semi-finishing operations in unstable set-ups or for machining slender components that require lower feed rates. The CoroTurn® Prime insert helps you achieve excellent chip evacuation and control in internal turning applications.

Parting and Grooving

Face grooving just got a whole lot more reliable. The CoroCut® QF has an innovative blade design that provides more material in the weakest cross-section for added strength and less mass in the front of the blade for enhanced stiffness.

Sandvik Coromant Corocut QF
Sandvik Coromant Corocut QF

Milling

The lightweight CoroMill® 390 is more compact and lighter than your conventional cutter. When paired with Silent Tools™ milling adapters, you get lightweight functionality, slender tooling, less vibration, better stability and good process security in tough and demanding operations.

Sandvik Coromant Lightweight Coromill 390
Sandvik Coromant Lightweight Coromill 390

When it comes to Sandvik Coromant’s new steel milling grades, the GC4330 and GC4340 are your best option for efficient steel milling. They offer substantially increased tool life and improved process security. The Inveio® technology employs a new substrate and improved post-treatment technology for high-quality and low-cost milling.

Sandvik Coromant Coromill 331
Sandvik Coromant Coromill 331

The CoroMill® 331 offers reliable grooving and parting off with its high-quality surfaces, superior metal removal rate and true 90° corners. Improved cutting edge means you get more life from your tools and more predictable machining.

Boring

A new generation of fine boring tools is here. The CoroBore® 825 has a short, fine boring head in aluminum that allows for reduced weight and distance between damper and cutting edge. The Silent Tools™ technology provides a damper dimensioned for every adaptor for max performance. It’s ideal for use in applications where vibration is a factor, especially when machining with long overhangs.

Sandvik Coromant Corobore 825
Sandvik Coromant Corobore 825

Tooling Systems

For maximum pull-out security for Weldon shanks, choose the CoroChuck® 930m with a mechanical locking solution. When both collet and chuck are locked, the cylindrical clamping capability prevents pull-out for increased productivity on all heavy-duty applications.

Sandvik Coromant Corochuck 930
Sandvik Coromant Corochuck 930

Digital Machining

Optimize your production processes with a connected machine that makes gaining insight to your workshop easy. Improve your machine data collection, get real-time shop floor status and manage historic insights through reports and closed loop handling with CoroPlus® MachiningInsights.  

Sandvik Coromant Coroplus MachiningInsights
Sandvik Coromant Coroplus MachiningInsights

Check out the latest update of CoroPlus® ToolGuide for reaming operations. The update makes tools and machining strategy selection for widening of holes simple. All you need to do is choose the operation you want, select the material and receive quick and accurate tool recommendations.

Create digital tool assemblies based on standardized data with the CoroPlus® ToolLibrary. Now you can have tool assemblies integrated directly into your digital machining environment and save directly to your computer for time savings and enhanced security in planning processes.

For more information on these and other cutting tools and accessories available through M&M Sales & Equipment, contact us or give us a call at 800-592-4516

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Hand Taps vs Machine Taps - What's the difference?

Hand Taps vs Machine Taps – Differences?

A brief knowledge drop from our friends over at North America Tool

Hand Tap and Machine Tap are terms that don’t always mean what you think! These are stale industry legacy terms. Originally meant to define a purpose, they can be misleading. They should not define a tap’s modern method of use.

According to some handbooks, the term Hand Tap has traditionally been applied to fractional-size taps having a standard general-purpose length. Most manufacturers don’t limit the description to fractional sizes. Assumed to be straight-flute, these are taps whose flutes are provided as a space to accommodate chips created as the tap cuts. Some research suggests the terminology originated in the early 1800s, when most threading applications were literally done by hand. Yet, when the Machine Age hit its stride after the 1880s, the term Hand Tap was still used for taps that were unchanged in design, and now used on machines, as well as by hand.

As machine tapping is a much faster operation than turning a tap by hand, chip evacuation became more difficult to control. Machine taps would become defined as those with flutes designed with geometry to direct the flow of chips out of the hole. Spiral-point and Spiral-fluted taps fit this category. These alterations in flute geometry improved tap efficiency. Today, with the increasing use of coolant-holes in taps, and external directional coolant-flow, a straight-flute hand tap can offer a similar assist with chip evacuation, and yet it is still perceived by some as different than the machine tap.

Don’t get hung up on a name. Both hand and machine taps sold today are manufactured from the same base materials, and can be used by either method. The decision of which design to use should be influenced by the needs of the job.

P.S. Check out the cool apps North American Tool has to help with tapping and tap design!

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Acme vs Trapezoidal Threads

A brief knowledge drop from our friends over at North America Tool

Acme threads appeared sometime in the late 1800s as an improvement on the square thread form. Square threads were the first choice for motion transfer and heavy loads. But square threads were difficult to produce with available cutter technology. Although the square form was relatively efficient for the purposes required, it was inherently weak at the base of the thread due to the sharp 90-degree angle of the flank. Modifying the included-angle to 29-degrees widened the base of the thread making it stronger. Over time, standards in Acme diameters and pitches were established, all with Imperial Inches in diameter and Threads-per-Inch units of description.

In Europe, similar standards followed using metric units of measure, and the slightly different included flank angle of 30 degrees. Metric standard trapezoidal threads are covered under DIN103. Diameter and pitch descriptions are in metric units of measure.

                            Acme Threads

Acme Threads

                              Trapezoidal Threads

Trapezoidal Threads

Both thread forms serve the purpose of producing linear motion when rotated, usually under heavy load. Some common uses include lead screws for linear actuation on CNC machinery, table lifts, clamps and vises, valve stems, medical diagnostic device drives, trailer jacks and jack-stands. The American Acme form has an included flank angle of 29 degrees. The metric Trapezoidal thread is at 30 degrees. The uses for these thread forms are essentially the same. In fact, taking manufacturing tolerances allowed into consideration, they may be interchangeable when TPI (threads-per-inch) is the same.

The demands placed on the tools that produce these threads are higher due to the amount of material being removed, per tooth, in the process. Controlling chip-load is critical. To design a tap for these threads, North American Tool requires specific detail on the application. Information on the material being tapped, tapping depth, condition of the hole (through or blind), and Class of Fit, is essential to engineer the proper tap. General-purpose taps are available, but are definitely not suitable for every application.

So, what’s the difference between Acme and Trapezoidal? Not much physically. Although the American Acme thread-form is used and accepted throughout the world, the choice of which to use is usually dictated by the origin and user destination of the finished part. To that manufacturer, the difference is everything!

North American Tool is a tier 1 manufacturer of special taps and dies with many taps having a 24-hour lead time. Call us today for a quote.

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Grinding Wheel Productivity

We posed the following question on social media last week and have John Thompson of Pferd to thank for a fantastic answer.

“4-1/2, 5″, or 6″: What is your favorite size grinding and/or cutting wheel? Jumping from 4-1/2 to 5″ is an easy way to get more bang for your buck with your existing grinder but will a 6″ wheel justify the cost of a new grinder?”

We asked John Thompson of Pferd USA to use his technical expertise and many years of experience running abrasives to answer this questions for us. Though John works for Pferd, this information is applicable across all brands and industries. We really appreciate John spending the time to put this information together for us. Without further delay, here is his answer to our question.

Improving Productivity and Performance in Grinding and Cutting

Being competitive in any fabrication process requires a continuing process to improve productivity and reduce labor costs. You may have found the right formula for bending, shearing, welding and material handling to reduce labor and improve process flow to keep the bids low and the work coming in. As these improvements can be very expensive a lot of thought goes into the type of product and overall cost. Long term savings are often the result from a logical investment in the math required to determine the return on any investment and the overall payback time from lower labor and material costs. This is how a fabricator stay competitive and keeps the team invested in the company growth.

But some of this savings can be lost when the productivity of grinding or cutting for preparing material for welding or cosmetically finishing material for paint or powder coating is left up to antiquated equipment or ideas about the difference between Price and Cost when it comes to abrasives. This is NOT a discussion about different grades of Bonded or coated abrasive product. That subject has been beat to death by every abrasive supplier with new grain or new special formulas that promise faster grinding and longer life. This is a discussion with a simple math lesson on improving productivity and reducing overall costs based on the extra life of a slightly larger diameter product.

This is a simple look at the increased performance and reduced costs for applying simple math to improve the volume of material going through the fabrication process and shipped to the customer as a finished product i.e. “Payday.”

There are two false ideas that must be addressed.

One: that the shop worker doesn’t care about getting their part of the job done on time and with minimum effort on their part. They do care as they need that job and the pay it offers to live. The faster they can complete a task with minimal effort means they can move on to the next task and complete the job on time so everyone can be paid and secure that the company is competitive.

Two: Constantly applying pressure to a supplier of consumable product such as abrasives, weld wire, band saw blades and other consumables will make the company competitive even if they do not change the process of grinding prep or finishing procedures. This false idea that high consumption of cheap or small diameter product based on price will offset lost productivity and allow a company to be more competitive. It is the Labor to use the abrasive NOT the Price of the abrasive.

So how can we improve operator productivity and reduce labor costs to keep some of the lost money due to old process issues? Look at the interaction of RPM, Diameter and power tool Weight to work Faster NOT Harder.

Based on Safety Requirements all manufacturers are held to the ANSI specifications or maximum allowed surface feet per minute of 16,000 or 80 meters per second when they make a bonded or coated product for sale in North America. A system of the power tool and consumable product cannot exceed that maximum speed. However the best grinding or cutting is not based on the time to complete a task but how FAST one can compete the task.

Here are several TRUE items about using Bonded or coated product:

One: As long as you do NOT exceed the maximum posted safe operating speed based on the diameter of a bonded or coated abrasive product it is ALWAYS best to run the product as close to the maximum operating speed as allowed.

For example using a 4 ½ inch (115 mm) bonded wheel that is rated at maximum 13,300 rpm (80 M/s) and often used on a properly guarded electric grinder rated up to 12,000 will yield greater stock removal, lighter surface scratch and less overall time in stock removal than any other process.

However, the negative cost is that the ONLY usable working part of a 4 ½ inch (115 mm) is about ½ of the outside diameter of the wheel. Then the power tool actually keeps the operator from using the rest of the wheel.

If the operator used a 5 inch diameter bonded wheel that is rated at 12,200 rpm (80 M/s) on the same properly guarded electric grinder rated at 12,000 rpm the overall speed of the outside of the wheel is 430 surface feet per minute faster. Faster diameter speed means faster grinding and cutting and the job gets done faster with less effort.

BUT Speed is NOT the whole story let’s look at effective life of the product based on Diameter only.

A 4 ½ (115 mm) inch diameter bonded product (on today’s power tool) has an effective life of ½ inch diameter and is often discarded when the product gets to 4 inches overall due to the size of the head of the grinder.

A 5 (125 mm) inch diameter bonded product (on today’s power tool) Has an effective life of 1 inch diameter when discarded at the 4 inch diameter based on the same physical size of the head of the power tool. Actually there is 44% MORE life on a 5 inch diameter wheel than a 4 ½ inch. With the increased surface feet per minute speed (32% FASTER at the outer edge with the same overall wear life) is really a better way to save money by buying less and getting more productivity from less wheel.

The REAL Savings is going to the 6 inch system. The Safe operating speed on a 6 inch diameter bonded product is based on the 80 M/s rule and is listed at 10,200 rpm maximum. However with a grinder that is offered in the same physical size as the 4 ½ and 5 inch versions but rated at 10,000 rpm to stay in safety guidelines offers the BEST performance at the lowest cost. The surface speed of the 10,000 rpm 6 inch example against the 5 inch 12,000 example is EXACTLY the SAME (15,708 Surface feet per Minute). The real saving is in the life of the product. The difference in total life of the 5 inch to the 6 inch diameter consumable is 62% MORE wheel. The difference in total life between the 4 ½ and the 6 inch consumable is 133%!!

Overall the cost of the new 6 inch power tool required to use the 6 inch product safely is easily justified due to the performance and life of the product. If the fabricator changes their fleet of older grinders from 4 ½ to 6 inch the return on the overall investment is less than 1 year. This is one of the BEST ways to improve performance and lower the Overall cost of a necessary process in the shop to really keep the product going out the door.

It is just looking at the process using simple math.

John Thompson

Oil and the State of Small Business

    As oil prices struggle to climb above $50/barrel and price stability seems to be anything but a reality, how do we plan for success in the current economic environment? The article below, published on FoxBusiness.com points to optimism in the market due to the lowering of crude inventories and the expectation that OPEC will extend their production cuts through the end of the year. But, is optimism enough to keep a business afloat? After 2 years of being hammered by poor oil production and now going into a third year of marginal growth now is the time to step back from your business, take the 20,000 ft. view and decide what you need to do to become or stay profitable! If you have already done this, great!! you are ahead of the pack. If you are sitting around waiting for the economy to right itself I’ve got 3 quick “projects” that you can tackle to start being proactive instead of reactive in your business.

 

  1. Read “Simple Numbers, Straight Talk, Big Profits” by Greg Crabtree. If you are new to P&L statements or business finance this short, easy to read book will get you up to speed quickly so you can make decisions on facts and your gut instead of your gut alone. (I’ll give a copy of this book to the first 2 people who comment asking for a copy.)
  2. Set SMART (Specific, Measurable, Achievable, Relevant, Time Bound) goals and keep them in front of you daily!!
  3. Find one or two KPI’s(Key Performance Indicator) and start measuring your performance. I would highly suggest using Revenue per Full Time Equivalent or Labor ROI as one of your indicators if you have more than a couple employees.

I’ve pasted the FoxBusiness article below. It’s a pretty interesting read as well. Reach out and let me know what you think of the article or anything in this post.

Oil Gains on More Support for OPEC Cuts, Optimism About U.S. Crude Draw

Markets Reuters

Oil prices rose for a second day on Thursday, closing more than 1 percent higher as support grew for OPEC output cuts a day after the U.S. government reported a big draw in crude inventories, boosting confidence that a global glut might diminish.

On Wednesday, the U.S. Energy Department reported that U.S. crude stockpiles posted their biggest weekly drawdown since December as imports dropped sharply. Inventories of refined products also fell.

“People are hinging the optimism today on the recent drawdown in inventories and I think that might last as long as we don’t have another inventory build,” said Stewart Glickman, head of energy research at CFRA Research in New York.

In recent days major producers like Iraq, Algeria and Kuwait have voiced support for extending last year’s deal from the Organization of the Petroleum Exporting Countries and other producers to cut supply by almost 1.8 million barrels per day (bpd).

On Thursday, non-members Turkmenistan and Equatorial Guinea said they would also join the cuts, though they are smaller producers.

On May 25, OPEC will meet to determine policy for the second half of 2017. Most analysts expect the group to extend cuts until at least year-end. If they don’t, Glickman said, “they’ll take the floor out from oil prices.”

OPEC said Thursday that group production fell in April. Despite the reduction, there are few signs that supply has fallen significantly as other producers have continued to supply key customers, especially in Asia.

OPEC also said it sees more supply coming from non-member countries such as the United States. The cartel raised its estimate of total oil supply growth from non-OPEC producers this year to 950,000 bpd from a previous forecast of 580,000 bpd.

U.S. oil production <C-OUT-T-EIA> rose to more than 9.3 million bpd last week, highest since August 2015. Even with this week’s drawdown in U.S. crude stocks, Glickman said the country has a way to go to reduce oversupply.

“You’re going to have to have a few weeks of 5 million-barrel draws just to get back to square one,” he said.