Posted on 06/24/2021 9:01:09 AM PDT by Hojczyk
$100 a barrel oil “sure is possible,” Harold Hamm, executive chairman at Continental Resources, told FOX Business on Thursday, commenting on oil prices and supply and demand on the oil market.
Oil prices are coming back where they were pre-pandemic, Hamm said, noting that commodity prices, including crude and natural gas, have returned to sustainable levels following last year’s crisis.
Asked to comment on the rising price of WTI Crude, which hit $73 per barrel this week, Hamm said that the U.S.
When you get to constraining supply you get prices that go up and that is a lot what is happening today,” Hamm noted.
$100 oil would likely bring back more drilling and supply in the United States, but there is a possibility that prices could go up as high as triple digits, according to Continental Resources’ executive chairman.
Hamm is the latest oil executive not ruling out the idea of $100 oil.
The chief executives of some of the world’s largest oil companies also said earlier this week that $100 oil isn’t a fantasy.
(Excerpt) Read more at finance.yahoo.com ...
Warren Buffett regrets $10B bet on oil
Corbin Hiar, E&E News reporterPublished: Tuesday, May 5, 2020
https://www.eenews.net/stories/1063050681
“It was attractive at oil prices that then prevailed,” Buffett said of Berkshire's Occidental bet. “It doesn't work, obviously, at $20 a barrel. It certainly doesn't work [at] minus $37 a barrel.”
The famous investor predicted that “oil production is going to go down a lot in the next few years because it does not pay to drill.”
I’ve been investing in energy for 40 years and this is an interesting time as oil companies have adjusted to Biden. Things went great for energy under Obama too.
A heavy majority oil companies are profitable at prices from $55 on up so there’s a nice cushion underpinning them at this time.
At least Democrats are good for somebody’s business besides BLM and Antifa.
“It was attractive at oil prices that then prevailed,” Buffett said of Berkshire’s Occidental bet. “It doesn’t work, obviously, at $20 a barrel. It certainly doesn’t work [at] minus $37 a barrel.”
I didn’t own Occidental but did own others and held them right through that oil depression. Some had to lower dividends temporarily but they kept paying and look very good again now.
Now that Biden is working with OPEC, OPEC is the key. If they start producing a lot more they can bring the price down. It’s their call which way they want to play it.
Making America Last Again
It’s all about destroying America’s energy independence.
Warren Buffett lost billions in the 2000s trying to run up the price of oil while Bush was President as well.
If OPEC should pull a 1973 embargo for similar or any reason, would the regime open up the American oil capacity they’re responsible for shutting down? Will the regime be held accountable in any way for totally unnecessary $5/gallon gas?
The run up to $140 in 2007 right after McStain was gaining traction after choosing Palen was not natural. Check the archives here. One trading firm caused the spike to start.
$5 a gallon gas will also push up grocery and shipping costs.
“I’ve been investing in energy for 40 years and this is an interesting time as oil companies have adjusted to Biden. Things went great for energy under Obama too.”
Our farm is smack dab on prime marcellus-utica oil and gas deposits. Our royalties boomed during the obama years. During Trump when oil prices collapsed from over supply they stopped pumping on our grid and all the oil and gas workers moved away
I rec a certified letter the other day that pumping is going to start up again in October and test teams with seismologist will be testing over our property in July.
I noticed all the rv parks where the oil and gas workers park their campers are filling up again.
Yes, luckily Obama failed. We’ll see how Biden does. The thing that comes back to bite them is that the oil just stays in a completely free storage space until it gets produced.
And, eventually, it will get produced, at higher prices.
Yes, I have mineral rights for gas in the Barnett Shale and went through the same thing. The checks are getting a little bigger again and one that wasn’t paying is paying occasionally again.
Buffet never makes a bet so big he can’t handle the loss. That’s why he’s made huge fortune and so have many of his investors. His oil debacle was a drop in the bucket for him.
A client lof mine never made much money. . About 25 some years ago he rec a small inheritence. Went out and bought 170 acres for $68k-worthless hillside ground. He brought it for hunting. His wife almost divorced him.
A few years later the coal company who owned the coal rights wanted to strip it. They paid him $240,000. They found huge gravel deposits and he made another $300k
Back in 2013 he signed with XTO for $5500.00 per acre up front money and 20% royalty.
They also put a well on the property and pay him $75k per year to lease and he gets something like .o1% of everything pumped out plus the 20% of his property. I do not know what he was making but at the high point we were making around $750-800 per acre per month from royalties on our small farm...so figure what he was making on a 600 acre grid.
He now lives in Florida in a gated mansion community.
Talk about pure luck and good karma.
I love those stories, there are many in the part of Texas where I lived for many years. A widow friend who owned the old family ranch called my dad a few months after she signed with XTO. She said, “I don’t know what to do, I just got my first check for my mineral rights.” Dad said, “What do you mean?” She said, “It’s for $90,000 and it just for this month!”
He said, “Don’t worry, it only pays really high for about 6 months, it will drop by about half after that. Just put it in the bank and don’t worry.”
He has no foresight.
He claimed it would be years before it was profitable again.
What a difference a regime change makes.
I’ve spent more than 40 years in the downstream side of the oil business from drilling, completions and production to finance, economics and marketing and said this last year and the year before that. We have gone through years of useful under-investment and the shale “miracle” is only good for a short time before significant declines.
Every single time in the last 50 years we have under-invested the price of oil skyrockets until demand is stifled by price and / or production catches up. This time it is worse though, we are seeing backs turned on oil investment because it is oil and not because it is a bad investment. A foolish sea-change to green / “renewable” energy is being followed just like lemmings to the sea. One foolish CEO who shall remain nameless at BP just gleefully said that better oil prices makes more money to invest in renewables. I do wonder just how much of the green abandon is for show though. Nobody would lie to us would they? A headlong rush into a green tunnel of darkness with only a solid wall to collide with at the end when the promise of renewable energy turns out just about like Texas this winter or this summer or Kalifornia this summer, don’t charge your EV. A collision at the end of a tunnel followed with no place to turn because of having forsaken the only real option to reliably fuel the world right now, OIL.
I’ve enjoyed a great few years of reckless recreational bulldozing here on the farm and see that being reigned in some soon by rising oil prices. Meanwhile, nothing beats the sound of the grunt of a slow speed engine and the smell of diesel and dirt.
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