Posted on 10/27/2015 8:11:37 AM PDT by bananaman22
Get ready for some bad news and red ink.
With the bulk of quarterly earnings reports in the energy industry yet to be announced, there are already $6.5 billion worth of asset write-downs, according to Bloomberg. And that could be just the tip of the iceberg. A Barclays’ assessment last week predicted $20 billion in impairment charges from just six companies.
Write-downs occur when the expected future cash flow from an asset falls sufficiently that a company has to report that the asset has lost some of its value. With oil prices half of what they were from mid-2014, oil and gas fields around the world are no longer worth what they used to be. Some oil fields that were previously expected to produce in the future may no longer even make sense to develop given current oil prices. As a result, investors should expect billions of dollars in further write-downs in the coming weeks.
(Excerpt) Read more at oilprice.com ...
Would somebody call the WAHHH-bulance?
in layman’s terms, please
“in layman’s terms, please”
A bloodbath in the American oil and gas industry.
Petro-Ping.
Those companies dependent on $100 per barrel oil will die.
Those countries dependent on $100 per barrel oil will go to war (Russia come to mind).
The price of oil is stuck below $50 per barrel.
http://www.dailyfx.com/crude-oil
Oil prices are down. Gas prices are down and headed lower. ‘They’ can see no way to successfully price gouge or artificially inflate prices. So ‘they’ are bristling at the fact that they’ll have to suck it up and allow us serfs to catch a break at the pumps for an extended period of time.
OilPrice.com
Not worth reading
And yet, price at the pump stays high.
I wouldn't bet the farm on that.
Congress has a bill to make legal the export of crude oil.
I LIKE that ...
Looking forward to this heating season for the first time in years.
Yeah, same.
Right
They’ve found one way to gouge. Premium used to cost roughly 6% more than regular. At most stations it is now roughly 27% more than regular.
one claim:
It turns out that the type of crude drawn from shale formations is rich in low-octane chemical components and therefore far easier to refine into regular unleaded. Foreign-sourced oil, such as the kind that OPEC producers supply, is easier to turn into high-octane premium.
Article has a nice history chart.
I’m going with low demand.
Thanks.
I saw $1.74 on my drive in to work this morning.
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