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Posted on 11/29/2014 6:49:24 AM PST by blam
Myles Udland
November 28, 2014
Oil is still falling.
In afternoon trade on Friday, West Texas Intermediate crude prices in the US dropped more than 10% to settle at $66.15 a barrel, a more than $7.50 drop in just 24 hours.
At one point on Friday, WTI futures briefly breached $66.
Brent crude prices, which are the global benchmark, also cracked $70 a barrel on Friday.
Earlier this week, WTI prices were at around $76 and Brent prices were near $80.
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(Excerpt) Read more at businessinsider.com ...
Well , can’t argue with that
I wonder if you surround them with aluminum foil to keep them from falling into the flame or wrap them in aluminum foil ?
Some kind of stainless steel cage ?
When oil hurts the nation laughs.
Some of these shale play companies will never go funds positive. They have to keep borrowing for years to keep paying back the borrowed well cost. This kind of drop in prices will leave them unable to ever pay back what they owe. The oil based shale sweet spots are drying up fast. They will go on the sales block at a loss and someone will buy them for a song. Just like in the past, the only ones making money will be the ones who bought the losses.
The oversupply isn’t that big and I am not so convinced that huge production increases will come out of Libya, Iran and Iraq in the next two years. We have waited on the Iraq dividend for several years now.
Right now this is punishment of shale and a panic in the pits. The shale fear will drive investors away for some time. That business will be in rationalization for a few years, two or three, prices will moderate to trade in the 70 to 90 range by 2017. That will be too long to wait for many and the service sector will suffer first as always. +100 has been a dividend and too high. The OPEC target of 90 ish was about right. There will be a lot of blood along I-10 and in Midland over the next 2 years. If you have a house to sell in those places better it had better be prime and you willing to take a hit on it.
As for your statement, “Exploration and productions based oil companies especially in the areas relying upon shale and ultra deep drilling”. There isn’t much else left to drill. The low fruit is gone. EXXI like companies may not make it without investors agreeing to just ride it out and delay payments.
“So, from your chart, now that oil is $66. ALL of these bloodsuckers are in the $hitter. They’ve formed a circular firing squad and are starting to shoot at one another. Way cool!”
Yes indeed. Happy Thanksgiving America and may the oil bloodsuckers shrivel up and fade away.
We do export oil, and the old no exports of American oil is going under the bus.
U.S. Oil Exports Hit 57 Year High - Breitbart
www.breitbart.com/Big-Government/2014/11/07/U-S-Oil-Exports-Hit-57-Year-High - 148k - Cached - Similar pages
Nov 8, 2014 ... With U.S. production and exports driving crude oil prices down and forcing ... to double to 8.5 million barrels per day (bpd) through July, 2014.
U.S. Seen as Biggest Oil Producer After Overtaking Saudi Arabia ...
www.bloomberg.com/.../u-s-seen-as-biggest-oil-producer-after-overtaking-saudi.html - 169k - Cached - Similar pages
The U.S. will remain the world’s biggest oil producer this year after overtaking Saudi Arabia and Russia as extraction of ... By Grant Smith Jul 4, 2014 8:56 AM PT.
Gasoline Price Study to Fuel Debate on U.S. Oil Exports - Bloomberg
www.bloomberg.com/.../gasoline-price-study-to-fuel-debate-on-u-s-oil-exports.html - 173k - Cached - Similar pages
The push to end a four-decade limit on exporting U.S. oil may get a boost from a government ... By Brian Wingfield and Jim Snyder Oct 29, 2014 9:30 PM PT.
BHP Billiton Starts Exporting U.S. Oil - Businessweek
www.businessweek.com/.../2014-11-05/bhp-billiton-starts-exporting-u-dot-s-dot-oil - 79k - Cached - Similar pages
Nov 5, 2014 ... BHP Billiton will start exporting oil from Texas without first getting permission from the federal ... By Matthew Philips November 05, 2014 ...
“What happened to the “we’re running out of oil people”?...”
Hopefully, they have gone the way of the dodo birds.
That BS started in the mid 1950’s and was probably financed by the Opecker Princes.
I don't remember the last time I had beef. I know damn' sure a McDonald's hamburger doesn't count as beef.......
Pre-made patties always tasted bad to me. The frozen ones tasted like rancid freezer-burned soy, and the fresh ones just tasted like rancid soy.
But, I have noticed flavors changing a lot recently. I thought it was just me, but all meats seem to have lost their flavor. And they’re so full of water that you need twice as much to get the same amount.
Even prepared foods like canned soup aren’t as salty as they used to be.
I’m looking forward to when I can raise my own and not have to wonder what it’s been fed or soaked in.
The article points to what may happen. We currently export mostly refined products.
FWIW OPEC combined exports total a little over 30 million barrels a day. US Production is about 8.5million now and perhaps was planned to go to over 9 million in a year or two.
Oil of course if fungible so whether we technically actually export oil is moot as we import with a zero net affect over all.
The point of my commentary was in response to a question about how low can the price go. IMO, if it were purely an economic thing, when equilibrium was reached in the market place between supply and demand it would be at that point.
This is not purely a market play on OPEC’s part. Their current policy seems to be to drive the marginal profit producers, read in new production in the US, out of the market and in effect make the US the swing state in setting an equilibrium price market supply heretofore with Saudi Arabia mostly.
We are not now nor will we perhaps ever become oil import free, we use far more than what may be our top production figure of 9 million barrels a day.
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