Posted on 03/13/2016 9:58:52 AM PDT by Lorianne
see url in following post
oh noes- all my billions!
Wow! That must be almost as much as all of the failed “green energy” loans!
there are oil guys on the edge of the woods ready to pounce and acquire the bankrupt assets. the creditors might not lose all
it is the way of the world all over again
That's weird, because oil prices have already snapped back, and the floor is said to be about $25 a barrel -- however, the trading range is likely to remain in the $30s.
Oil seems to have hit bottom and started back up again, from the looks of retail gas prices here, went from $1.52 to $1.90 in about a month’s time.
On Monday gas at our local station was $1.49, by Friday it was $1.69. Yesterday it was $1.85. $.36 increase in less than a week. Something is going on.
If it’s due to oil price increasing, I won’t mind so much if it’s sufficient to turn things around with domestic production. If it’s something ridiculous like seasonal blends and refinery capacity, I will mind.
Our family doesn’t mind paying a little more because maybe it might keep more of our neighbors from losing their jobs. I suspect that some of it has to do with the fact that this week is spring break for our area and more people were needing to fill up for a trip somewhere. We’ll see if the price goes down in a couple of weeks.
These people going bust is not a reflection of their business acumen, imo.
The Saudi’s, egged on by the anti-hydrocarbon President obama, pumped oil longer and harder than they ever did before. To get the American shale industry; to punish Russia.
Most of this can be put at the feet of obama and the environmental nutjobs.
Not to mention all the seniors who depend on their dividends to live would also get hurt. Win-win for obama
I disagree. The ‘oil boom’ was massively over-leveraged and under-diversified
About four or five years ago I saw it go up 80 cents per gallon in 13 days.
Most of it was based on an ave price/bbl of between $50-$80, a reasonable assumption if governments didn’t collude to destroy entire countries that depend on oil revenues.
Some shale producers were structured to remain profitable at $40/bbl.
Sure, there were excesses (as there always are), but this ‘lower for longer’ hasn’t been like this in half a century.
And many people took out loans for houses based on the reasonable assumption that they would keep their jobs and that their investment would only increase, never decrease.
Many were wrong on one or both counts.
Leverage has it’s downsides.
I recently read that refineries do a lot of repair and maintenance work in the spring. This cuts into production, which increases prices.
Right. Leverage cuts both ways.
But that’s the essence of a free market economy - the willingness to assume risk.
The Black Swan event was the collusion by the US and Saudi Arabia (and I’m sure others) to pump oil as much and as fast as they could until the people, industries, and countries were damaged, even to the point of ruin.
My point is that all the bankruptcies and layoffs in the oil patch is hardly the result of irresponsible, damn the torpedoes borrowing.
others may have a different opinion, but I don’t see how anyone could have forseen this. As they say, ‘hindsight is always 20/20’.
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