Ping.
Nice chance to build up the oil reserves at garage sale prices.
Never happen with the current administration. Makes too much sense and it would good for the country.
Debt interest payments don’t go away just because your revenues are down. They kind of have to make it up in volume. Until prices fall below cash costs, oil producers will pump as much as they can to service their debt. For some, dividends will have to be cut or zeroed out. Chapter 11 filings are probably being prepared for some of the ones that borrowed too much money for them to be solvent at $70 oil.
Oil and gasoline prices are down, which has allowed me, and undoubtedly many millions of Americans, to drive more to more places where I spend more of the money I’m saving on fuel.
I can’t think of a better stimulus to the economy than the much lower fuel prices of the past year or so.
The oil companies will sell more fuel, and perhaps even make up their losses from the lower petroleum prices. The economy should benefit greatly via the money left in people’s pockets and in businesses’ bank accounts.
This petro-fueled stimulus will make the crapulus from Obama seem like a drop in the bucket. This stimulus could last for many years.
There’s no doubt that the evil trio of hussein/Soros/Buffett are behind these gyrating oil prices in an attempt to disrupt the economies of the energy states, the states that are most reliably Conservative: Texas, Louisiana, Oklahoma and North Dakota. I’m already seeing evidence of the damage inflicted by hussein and his cabal here. The restaurants, normally busy as we approach Christmas, have half-filled parking lots. I can only imagine the even worse suffering in places like Midland and Odessa, Texas. This is all part of hussein’s plan to establish a caliphate in America under the control of his OPEC masters.
Exxon is gunning to become the only oil company in the West.
;-)
I’m reading the book “Frackers” to get an idea of how this all happened. Exxon and other large companies were not interested in shale for a long time.
Mitchell Energy came up with the idea that the Barnett shale under Dallas-Fort Worth held valuable natural gas. The owner decided to pursue it when he was 63. By the time he was proven correct and became wealthy, he was 79 with a wife with Alzheimer’s. The American dream blossoms when most of us retire. In this case, he helped change the world.
Prayers answered, America”s shale boom industry shall survive and become much stronger in the face of those who want to undermine it.
Opecs desission to destroy America’s shale industry to undercut the price of oil did just the opposite, it made the oil rigging and drilling equipment cheaper that off sets any cut in the price of oil.
Take that OPEC and Russia.
The God of Israel lives !
There are a few major players who are licking their chops with this oil bust.... XOM and CVX. If oil drops another $20-30/bbl, it will be like a cheap all you can eat M & A buffet for these two.
This may all very well be true, I don’t know. What I do know is one of the customers our service company works for right now runs 6 frac crews. What we are hearing is they only plan on letting one go if prices hit $45. That doesnt mean that they wouldn’t do that anyway if prices stay down for a while, and it may also only be field talk anyway so who knows? The only real way to know is to watch the weekly rig count.