Continental has some plans in the STACK. I think they are pushing through with their plans, but the hold up may be investor's sentiment.
Continental has some plans in the STACK. I think they are pushing through with their plans, but the hold up may be investor's sentiment.
They will definitely be heavier in the SCOOP and Merge than the STACK. They are likely going to reduce their rig count as well but if their continued high dollar mineral purchases ahead of the drill bit in the SCOOP & Merge are any indication (they greatly reduced their STACK mineral purchasing activity last year), they will still be active in Oklahoma just probably a little less than they are now.
Significant drone attacks on main Saudi Arabian oil refineries. Oil prices have spiked. Houthi rebels in Yemen take credit but everyone knows Iran behind it. Houthi's don't have the means to do this alone. Look for respones from Arab nations against both groups.
Pre market opens at 530. Probably a 10% jump, if SA retaliates against Iran that’s when this spirals out of control quickly
The last five economic recessions were preceded by a spike in oil and gas prices. This type of conflict in the ME could be what kicks that off. I’m a believer that we will see much higher oil prices by spring/summer 2020.
That was because we were dependent on foreign oil and price shocks would greatly impact consumer spending. We're no longer dependent on foreign oil, so while a price increase wouldn't be great for the consumer, it wouldn't have nearly the economic impact previous price spikes had.
You said the opposite of me but you have to look beyond SA. I don't like them, how they treat women or much of anything about their Salafist religion but they are FAR better than the Iranian regime which is the cause of the vast majority of unrest in the Middle East today.
Iran's Shiites and Sunnis are battling for control of Islam and the Persian Gulfs vast oil wealth. Iran has subtly aided but allowed the US to destroy ISIS and supporters but is quietly filling in the vaccuum and territory ISIS has left. They are trying now to establish a territorial control bridge from Iran to the Mediterranean to expand their influence and are doing this through well -trained and armed surrogate militias - with little direct action so they can deny responsibility. This is exactly why the Houthi's are taking responsibility for the oil refinery attack.
The Houthi's barely have the ability to move beyond donkey carts and mud houses - nevermind coordinated multi-drone attacks specifically hitting the most expensive, explosive and vulnerable parts of a refinery. Obviously, this was an Iranian attack.
By hitting these refineries, they are attacking the world's economies. The US could easily live without Middle-east oil but Asia and Europe can't. Like SA or not, they are an easy lesser-of-two-evils.
Hmm, recessions caused by high oil prices. or more of a case or world leaders foreseeing upcoming recessions and preemptively looking for anything to point their finger at? Purely speculative on my part and more of a though experiment.
World is pretty tense right now. You have India and Pakistan on edge over Kashmir again. You also have the tense relations with US and China over Hong Kong and trade.
That could very well be the case, however it’s worth noting that in the past 50 years there has been a spike prior to the start of recession. With many predicting we will be in a recession this time next year I expect to see higher prices, understanding the global oil industry is different than it was during the last recession spike in 2008-09.
We’re a long way from a recession induced by an oil spike. Like $40/barrel away.
https://www.cnbc.com/2019/09/16/oil-...s-economy.html
i just wonder how many HZ locations are viable at current pricing in Oklahoma. just seems like a lot of these companies are into the idea of taking big barrels of cash and lighting them on fire.
Watching Jim Cramer on CNBC, he said US domestic is now the global " swing producer " .
I thought , what ???
Our domestic production can not be increased quickly. Increasing production involves drilling instead of tapping storage. And storage is bottlenecked in some places by lack of pipeline.
Some times I wonder about Cramer. He says Rusty Braziel will be on his Mad Money show Monday. Cramer has sources but I still wonder what he's selling.
If you watch him much, his feeling is that demand growth in the US is declining with the proliferation of hybrid and electric cars as well as the desire among some groups to go carless or cut to one car.
He is also huge on the Permian Basin and SE New Mexico production finally getting adequate pipelines to the gulf. That eliminated bottleneck is expected to be able to siphon off excess oil coming into Cushing- which is also getting some new pipeline capacity. Overall, his thinking is more efficient transportation from the well to the refinery and the US being able to be a huge net exporter now - especially in gas.
I watch CNBC in the mornings every day, have for a lot of years. I don't get that being his view.
This event in Saudi shows why US domestic can not be a swing producer. No way US can get oil to the market that fast. Production growth is a long slow process. And cutting production to support a price level only comes when companies go bankrupt. They pretty much have the pedal to the metal all the time and don't show a lot of financial discipline. Many of the producers are so highly leveraged and have wells that deplete so fast, they can't quit drilling.
No doubt increased domestic US production has created a glut of oil, but to call them swing producers globally is in accurate.
Cramer keeps talking about " young money managers " who won't invest in oil stocks for climate change reasons. I don't think that has a whole lot to do with anything. Bill Gates said as much yesterday, said it accomplishes nothing. Sometimes these guys like Cramer only breathe the Wall Street air, they live in an echo chamber.
On Tuesday 7-11 raised regular gasoline prices from $2.159 to $2.199. Yesterday it was back down to $2.179. This was at 71st & N. Western.
Sorry, CNBC has been my constant background in my business for 20+ years.
Cramer has said precisely what l said and has done so more than once. The young money managers issue is one of his points but he has long talked about the Permian fundamentally changing the country's energy situation once pipelines of sufficient volume can be built and opened. This has now been done. The efficient transportation of O&G is his main reason, not necessarily imcreased production. Once the next pipeline is complete, they can export the Gas from the Permian insteadvof flaring it off. There is also the issue that production could be increased pretty significantly if prices were higher. There are a lot of higher cost wells that are shut down.
Cramer has talked about this frequently on his morning show so you couldn't possibly watch every day (no offense intended but he has talked in detail just in the last 2 weeks).
He is often wrong but investing is like baseball you'll never hit them all and you work to correct your mistakes. One of his biggest disappointments, and he said so on air, was beleiving Aubrey McClendon and how he ran Chesapeake. He has also been very wrong about GE.
As far as the wall street cocoon, you can't be a successful fund manager and not be attuned to what goes on around you. You definitely can get tied up in your own work and lose touch with everday knowledge for the rest of us. I used to work for a major fund company and spoke to a person once thought of as the greatest living stock fund manager. He was calling to ask how much he could put in his IRA for his annual contribution. Cramer doesn't seem to have this problem.
Sorry, CNBC has been my constant background in my business for 20+ years.
Cramer has said precisely what l said and has done so more than once. The young money managers issue is one of his points but he has long talked about the Permian fundamentally changing the country's energy situation once pipelines of sufficient volume can be built and opened. This has now been done. The efficient transportation of O&G is his main reason, not necessarily imcreased production. Once the next pipeline is complete, they can export the Gas from the Permian insteadvof flaring it off. There is also the issue that production could be increased pretty significantly if prices were higher. There are a lot of higher cost wells that are shut down.
Cramer has talked about this frequently on his morning show so you couldn't possibly watch every day (no offense intended but he has talked in detail just in the last 2 weeks).
He is often wrong but investing is like baseball you'll never hit them all and you work to correct your mistakes. One of his biggest disappointments, and he said so on air, was beleiving Aubrey McClendon and how he ran Chesapeake. He has also been very wrong about GE.
As far as the wall street cocoon, you can't be a successful fund manager and not be attuned to what goes on around you. You definitely can get tied up in your own work and lose touch with everday knowledge for the rest of us. I used to work for a major fund company and spoke to a person once thought of as the greatest living stock fund manager. He was calling to ask how much he could put in his IRA for his annual contribution. Cramer doesn't seem to have this problem.
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