Posted on 01/07/2015 8:54:24 AM PST by Dr. Thorne
"There are too many ugly balance sheets," warns one energy industry analyst, adding simply that "the group is not positioned for this downturn." While the mainstream media continues to chant the happy-clappy side of lower oil prices, spewing various 'statistics' about how the down-side of low oil prices is 'contained' and the huge colossal massive tax cut means 'everything is awesome' for America, the data - and now actions - do not bear this out.
(Excerpt) Read more at zerohedge.com ...
Backdoor frack attack? All I have been hearing is how wonderful it is to have $2 gasoline again!
Methinks you have swerved into the likely result.
People in Tx are already bleating about that 3.5 magnitude quake that occurred yesterday and attributed it to fracking.
Never mind that hydraulic fracturing had been going on in the area for decades before this.
It’s the normal cyclical math of the marketplace. When prices for a good are high more enter the market to sell because it’s easier to be profitable. Then supplies go way up. Which makes prices fall. Which makes it harder to be profitable. Which makes companies go under. Which lowers supplies. Which drives up prices. Lather, rinse, repeat.
In my teens, I worked pumping gas in a gas station. it was 25 Cents per gallon and teenage attendants like me pumped the gas ... and wiped the windows ... and checked air pressure in tires,
Yes....too me it’s quite shocking that so many are shocked at the current circumstances...
Simply amazing that people in the industry didn’t see this coming, and plan appropriately.
They probably saw some variation of it coming, but they didn’t think it would run this hard. They probably figured the prices would fall slower giving other companies more time to go bankrupt first thus keeping the prices from dropping so low it would affect them.
Shut up, now get back there and turn those damn machines back on!!!! /S
Many old timers have seen it coming and have been husbanding their cash just for this type of situation. You do not know how many times I have heard from the young whipper snappers during the last 5 years that “this time is different”. Now, let’s get out there and buy some tulip futures and make a fortune!!!! LOL
The planning for lower oil prices is called hedging, which is as I understand it, contracting suboptimal set prices for the contingency of falling oil prices. The companies with weaker balance sheets will fall, but the stronger will survive.
It's called competition .... survival of the fittest ... aka Capitalism.
To hell with socialsm.
fixed it. I love fracking. 3.5 ain't nothing.
Saudi/Big Oil conspiracy to take over small producers?
It’s Econ 101 - but people prefer Conspiracy 101 - there’s usually a better plot.
I meant SOME.
Mainly the ignorant ;-).
Sorry about that. ‘Pod.
Price of oil goes up, price of oil goes down. The companies that chose not to prepare for the drop in prices will get bought or close shop. That’s capitalism.
Who you gonna believe? Eco-fascists or 50+ years of fracking experience?
This was the Saudi plan all along. It seems to be working. If they can drive the price down to or close to $30 it will effectively shut down all Fracking operations and much of U.S. Drilling. Even after the price starts climbing again, the costs to start back up are so prohibitive, it will take years to get back to where we were.
Yeah...it's Adam Smith's invisible hand stirring the pot.
Entrepreneurs Rule....next up waterless Fracking.
(did I mention GASFRAC)
BTTT
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