Posted on 10/15/2015 1:49:26 PM PDT by bananaman22
There is still very little clarity on the state of the oil markets, and the recent rally did nothing to dispel that fact. Still there is a bit of consensus around the notion that the rally will be short-lived.
Just a few short weeks ago it appeared that oil had hit bottom. After briefly dipping below $40 per barrel, speculators began taking more bullish positions on oil, and prices leveled off in the mid-$40s for the month of September. As more and more data trickled in, pointing to a sharper slowdown in U.S. oil production, markets grew more confident that the rebound had finally arrived.
Rig counts began contracting again, demand continued to rise, and credit redetermination periods raised the prospect of weak drillers being forced out of the market.
Then there were a few other outside forces that conspired to push up oil prices. Volatility in global currencies and financial markets, plus new concerns over the U.S. economy convinced the Fed to hold off on raising interest rates. The dollar weakened as a result, providing a bit of a lift to crude. To top it off, while Russian airstrikes in Syria didn’t cause prices to shoot up, the prospect of geopolitical conflict suddenly returned to oil markets after having been a nonfactor for more than a year.
(Excerpt) Read more at oilprice.com ...
This is Saudi Arabia's gas war against the American fracking industry.
They may kill off a few companies, but the oil and gas is still there...still in the ground.
Old companies will be reorganized and new companies will be formed...and, in the end, only the Saudi's will have suffered.
Saudi's may be rich, may even go to the best business schools...but the muslim mind is a dead, limited to the inside of the box, linear mindset.
It lacks the capacity to understand reality.
Reality is dynamic...exponential.
Fairly sure at this point you are not one of the industry.
Lots and lots of people out of work. Lots of business struggling to survive. Some won't make it. Some are already gone.
And Saudi isn't "suffering" that much besides depleted cash reserves, while they have increased their drilling and other investment for larger future production. Now Venezuela, Nigeria, Angola, etc, they are really suffering at this time. They brought most of it on themselves, so I don't feel sorry for them.
And I am so sorry about that. But the industry is still alive...in the ground. While the people out of work may not recover, the industry will.
So in the end, the Saudis only hurt the people and investors.
Macro level, I know--and not sensitive to the human tragedies--but one can't have everything.
The jobs are still there...just waiting. They will return and so will companies to drill and frack.
All Saudi's did was sell their oil too cheaply.
We still have ours.
thack I agree, I live in Texas and see pain in lots of places and I live in East Texas. I’m sure Eagle Pass and the west and south are emptying out as I speak. So to the Bakken. The man camps are way way down in occupancies. Sadly construction of apartment developments take time. Construction sites in ND are being walked away from.
Why do we still have the DOE? Didn’t carter start it to get us off foreign oil?
FAIL
RR, I don’t think you understand. To be honest I don’t either and probably most people don’t either.
During the last 7 years, the 1st 6 years Texas, North Dakota, and Penna. carried the country with many many good high paying jobs. When the rest of the country was in depression, the oil states carries us over by drilling and drilling for Natural Independence from foreign oil.
Sadly, the Saudis who were used to exporting mbd to America, but now all the sudden we can not only supply ourselves but we can export (if they legalize it) LNG gas to Europe.
The Saudis have refused to cut the production that they used to sell to us but now we can produce ourselves.
So what do the Saudis do? Keep producing to shut our operations down, destroy our economy and THEY ARE SUPPOSE TO BE OUR FRIEND?
Rangeland Energy's Rio Hub receives largest frac sand unit train on record
Saudi doesn't understand business.
They think they can kill a bunch of companies and they have killed the oil.
Not so. The oil (an asset) is still there. It has gone nowhere.
They have killed the ownership but not the assets in the ground.
The Saudi's have studied business in the best schools but they cannot comprehend the concept.
Business is dynamic/exponential.
They think it is linear (as in 1+1=2). 1+1 doesn't equal 2 when an economy is growing.
That still doesn’t make folks around where I live feel any better.
Trust me $1.67 at the pump here looks good, but when I drive by the supplemental oil businesses in my town and seeing them closed up and empty, it doesn’t look good especially when the national economy is saying people aint buying things.
It's been a total FAIL...but that's GOBMENT...they grow and grow,,and GROW!!
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