Is anyone concerned by the current oil price? Is it just a dip or a sign of a bust to come?
I'm curious, but know little about macro-economics so I really have no idea. Concerned? Not so much, but then they say ignorance is bliss. My wife says I must be one happy damn guy then.
I am not terribly concerned about oil prices, Once the price reaches the actual lifting cost it will go back up. The OPEC countries are apparently a little pissed that the Shale Oil folks are so successful and are now trying to price them out so they go away/bankrupt etc. I am sure it could bankrupt some of them, but it wont eliminate them completely. We will gladly keep our oil in the ground and buy OPEC oil at the low price until the price increases. Oil will increase within the next 12/24 months.
The oilfield guys I know think OPEC is trying to slow down shale oil production in NA. Especially among all the smaller companies that have started up. The shale oil is not profitable at $60 oil. Temporary relief. Fuel will return to $3-4 in no time. Actually diesel hasn't dropped much if any.
I am. But its nothing new for me as a mineral rights owner. Ride out another wave, or cycle.
Read where Mr Hamm lost another $5 billion, but not by divorce, his worth dropped from $10 to 5 billion recently. I dont feel so bad.
Read where Mr Hamm lost another $5 billion, but not by divorce, his worth dropped from $10 to 5 billion recently. I dont feel so bad.
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it is concerning. we are on the front end side of things. We have seen 50-60% less bids this year than last for 4th quarter. A lot of the smaller operators are simply not doing anything because it is not economical.
It scares the hell out of me. Not because it really has an affect on anything but the price of things related to oil but because of the dagger of fear that it puts into a lot of folks who act like a low oil price will take the last breath away from their life. The pigion theory of fear can cause the panic to affect every market; not just the oil E & P business.
Just talked to the wife about this and she said she is swamped working on quotes to customers domestic and overseas for the products they manufacture and sell in Tulsa to refineries. I remember years when oil prices had dipped and they werent building much now they cant build them fast enough.
For some companies it's not. Harold Hamm, CEO of Continental Resources recently said that he could make money with oil at $50. He also dropped ALL of his hedges so he's totally exposed now and he did that a few weeks after making that comment. Is he playing poker with the Saudis? Time will tell...
