oil is in the red

Briansol

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if you had told me in 2008 that oil would be worthless, i would have laughed in your face and bet the farm on it not happening.

I would have been wrong.


Crazy times. They will now 'pay you' $35 a barell to take crude off their hands.

 

reckedracing

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I filled up my tanks Friday for 1.549/gallon.
I got the group buy discount down from 1.729 (ordered 1700+ gallons at 3 locations).
Website price is down to 1.669 today. So it goes.
Got jumpy after OPEC signed that agreement last week and called Tuesday or Wednesday.
 

Jeef

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I just paid 1.69 for home heating. Would have waited longer if I could. Still better than the 2.29 I think I paid in October.
 

lswhitecivic

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The crazy prices you’re seeing are only for May futures which expire tomorrow and then June futures will be the current strip which are around $21 currently.

It’s still super crazy to see but futures trade a lot on paper before they materialize and I assume what you saw today was people/funds that deal in the trying to get rid of them before they expired.

We’re still in for a long cycle though and I’m really interested to see what non majors can survive this market. I think we’re in for a lot of bankruptcies and several M&A deals.
 

BigJ

I'm just about that action Boss.
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This is very interesting. You are correct, there will be a rash of bankruptcies and the big guys with enough cash will gobble them up. There are many large shale companies though that could go belly up pretty quickly as well. Many refineries look like they might also go under. This won't help consumers.
 

Briansol

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I'm also hearing that CO2 is becoming rare/expensive as it is a byproduct of the oil process. Soda and other things with CO2 may end up skyrocketting as there is no supply
 

Matts96HB

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I left Halliburton ~1 year ago and sold all stock tied to the energy sector. It was easy to see the writing on the wall when your managers were holding the pen.

As linked above, these are futures which aren't as significant as the media would like you to believe. But even at $21/bbl, a few of the US shale plays are not economical - the Niobrara, Bakken, and the gas-rich plays in the NE are borderline profitable. Most operators are still able to make money in West Texas but will certainly slow completions until prices return to $30-40/bbl. Drilling will likely slow a bit and flat line due to some operators taking advantage of cheap drilling services.

It's a mess of an industry and, frankly, it needs a reset in personnel and thinking.
 
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