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Post by Deleted on Apr 29, 2020 14:44:58 GMT
"It’s game-over for most of the U.S. oil industry. Prices have collapsed and storage is nearly full. The only option for many producers is to shut in their wells. That means no income. Most have considerable debt so bankruptcy is next. Peggy Noonan wrote in her column recently that “this is a never-before-seen level of national economic calamity; history doesn’t get bigger than this.” That is the superficial view. Coronavirus has changed everything. The longer it lasts, the less the future will look anything like the past. Most people, policy makers and economists are energy blind and cannot, therefore, fully grasp the gravity or the consequences of what is happening.... The game is over for oil. We should place all of our attention on saving the economy. I hope that we learn to view what is happening as a chance to simplify and to learn to be satisfied with no more than what we need. It is unlikely that we will have much choice." oilprice.com/Energy/Crude-Oil/The-Death-Of-US-Oil.html |
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Post by freecharlie on Apr 29, 2020 14:47:24 GMT
The game is over for oil. We should place all of our attention on saving the economy without oil a lot of area economies will collapse. Colorado, new Mexico, wyoming, n Dakota, texas...
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Post by freecharlie on Apr 29, 2020 14:48:20 GMT
Plus if US oil collapses completely, we are at the mercy of Russia and the middle east along with Mexico and...honestly I don'tknow who else. They then control us.
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Post by Deleted on Apr 29, 2020 14:53:20 GMT
Plus if US oil collapses completely, we are at the mercy of Russia and the middle east along with Mexico and...honestly I don'tknow who else. They then control us. The good news (though not for current owners of shale fields and production) is that if oil prices go back up, then the fields become worth paying for production again. It's economics 101. But for those currently holding the land, leases, equipment - esp. in a debt position, it's the end. |
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Dalai Mama
Drama Llama
La Pea Boheme
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Jun 26, 2014 0:31:31 GMT
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Post by Dalai Mama on Apr 29, 2020 16:08:20 GMT
Typically, when oil prices fall, the Canadian dollar (as measured against the US$) takes a major hit - we are very much a resource-based economy. Right now, though, it doesn't seem to be budging. I'm assuming that's because the US economy over-all is also taking a huge hit.
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Post by questioning on Apr 29, 2020 16:17:36 GMT
I want us to develop other energy resources, more than you know.
But I do not find joy in this. Game over will be devastating at this point in time and the losses are not a cause for cheering.
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Post by **GypsyGirl** on Apr 29, 2020 16:18:29 GMT
we are at the mercy of Russia and the middle east along with Mexico and...honestly I don'tknow who else. China There is about to be a big shopping spree going on as these companies are sold off for pennies on the dollar. Now is the time to be very aware of who is coming in and buying them up. |
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Post by questioning on Apr 29, 2020 16:23:44 GMT
we are at the mercy of Russia and the middle east along with Mexico and...honestly I don'tknow who else. China There is about to be a big shopping spree going on, as these companies are sold off for pennies on the dollar. Now is the time to be very aware of who is coming in and buying them up. Definitely!!! |
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Post by sunshine on Apr 29, 2020 17:37:21 GMT
Chinese companies have been buying up US companies for years. It's been slow and gradual, but it's been big. Some of the surprises that I found were GE, Smithfield Foods, and AMC. I can't tell when this chart is dated, but it shows quite a few acquisitions in the Energy field, and I completely expect China to come in and start another buying frenzy. money.cnn.com/interactive/economy/chinese-acquisitions-us-companies/China's trouble, has been, and if we as a country don't wake the fuck up it's only going to get worse.
I wanted to add that there's been a shortage of swabs necessary for these Covid-19 tests, and I read some components come from China.
I also read yesterday we can expect a continued shortage of cleaning/disinfecting supplies. For example, Lysol gets some of it's components from China.
Don't forget China threatened to cut off supplies of our much needed medicine.
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Post by Deleted on Apr 29, 2020 18:18:54 GMT
China There is about to be a big shopping spree going on, as these companies are sold off for pennies on the dollar. Now is the time to be very aware of who is coming in and buying them up. Definitely!!! That!! |
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Post by Scrapper100 on Apr 29, 2020 18:40:26 GMT
Chinese companies have been buying up US companies for years. It's been slow and gradual, but it's been big. Some of the surprises that I found were GE, Smithfield Foods, and AMC. I can't tell when this chart is dated, but it shows quite a few acquisitions in the Energy field, and I completely expect China to come in and start another buying frenzy. money.cnn.com/interactive/economy/chinese-acquisitions-us-companies/China's trouble, has been, and if we as a country don't wake the fuck up it's only going to get worse.
I wanted to add that there's been a shortage of swabs necessary for these Covid-19 tests, and I read some components come from China.
I also read yesterday we can expect a continued shortage of cleaning/disinfecting supplies. For example, Lysol gets some of it's components from China.
Don't forget China threatened to cut off supplies of our much needed medicine.
I’ve never understood why we would allow foreigners to own property or to buy America companies. Other countries don’t so why do we. |
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Post by **GypsyGirl** on Apr 29, 2020 18:45:28 GMT
I can't tell when this chart is dated, but it shows quite a few acquisitions in the Energy field, and I completely expect China to come in and start another buying frenzy. It's not just companies they've been buying. They have been buying into major oil projects with multiple partners for well over 10 years. When companies get desperate, they really don't care who they sell to as long as they are the highest bidder. It's a way for them to come in the backdoor so to speak. Have you ever looked at what they've been buying up in Africa for years? |
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Post by sabrinae on Apr 29, 2020 18:48:19 GMT
Chinese companies have been buying up US companies for years. It's been slow and gradual, but it's been big. Some of the surprises that I found were GE, Smithfield Foods, and AMC. I can't tell when this chart is dated, but it shows quite a few acquisitions in the Energy field, and I completely expect China to come in and start another buying frenzy. money.cnn.com/interactive/economy/chinese-acquisitions-us-companies/China's trouble, has been, and if we as a country don't wake the fuck up it's only going to get worse.
I wanted to add that there's been a shortage of swabs necessary for these Covid-19 tests, and I read some components come from China.
I also read yesterday we can expect a continued shortage of cleaning/disinfecting supplies. For example, Lysol gets some of it's components from China.
Don't forget China threatened to cut off supplies of our much needed medicine.
I’ve never understood why we would allow foreigners to own property or to buy America companies. Other countries don’t so why do we. Other countries do indeed allow it. It’s not unusual at all. It a part and parcel of global capitalism. The businesses are private entities — why couldn’t they be bought and sold like any other entity. That’s not to say there aren’t concerns when foreign corporations and even governments buy up large portions of economies— there are, but it’s not new. |
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Post by busy on Apr 29, 2020 18:51:31 GMT
Chinese companies have been buying up US companies for years. It's been slow and gradual, but it's been big. Some of the surprises that I found were GE, Smithfield Foods, and AMC. I can't tell when this chart is dated, but it shows quite a few acquisitions in the Energy field, and I completely expect China to come in and start another buying frenzy. money.cnn.com/interactive/economy/chinese-acquisitions-us-companies/China's trouble, has been, and if we as a country don't wake the fuck up it's only going to get worse.
I wanted to add that there's been a shortage of swabs necessary for these Covid-19 tests, and I read some components come from China.
I also read yesterday we can expect a continued shortage of cleaning/disinfecting supplies. For example, Lysol gets some of it's components from China.
Don't forget China threatened to cut off supplies of our much needed medicine.
I’ve never understood why we would allow foreigners to own property or to buy America companies. Other countries don’t so why do we. What? We live in a global economy and it happens (essentially) everywhere. Even if there were benefits to not allowing it (which I don't think there are, except in very limited circumstances), that horse is so far out of the barn around the world, it could never be undone. You don't believe non-Americans should be allowed to own property in the US? Seriously? |
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Deleted
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Post by Deleted on Apr 29, 2020 19:16:44 GMT
I’ve never understood why we would allow foreigners to own property or to buy America companies. Other countries don’t so why do we. Other countries do indeed allow it. It’s not unusual at all. It a part and parcel of global capitalism. The businesses are private entities — why couldn’t they be bought and sold like any other entity. That’s not to say there aren’t concerns when foreign corporations and even governments buy up large portions of economies— there are, but it’s not new. Capital has no country and no loyalty. It only seeks its own highest returns. |
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Post by freecharlie on Apr 29, 2020 19:34:46 GMT
This hurts way more than big oil and gas that people complain about. It hurts the property owners in the areas because of the tax base. It hurts the businesses that work directly with the oil fields but it also hurts every part of the economy and infrastructure- truckers, mechanics, electricians, dealerships that sell/lease the pickups used, retail, restaurants, schools, roads, permits, licenses...
The ripple effect of this is damn near endless. It is definitely not something that people should be celebrating. The last effects could be an extremely high cost of a gallon of gas in the not so distant future (year or two).
And I say this as someone who powers her house from solar electricity and who is/was looking into a hybrid for my next vehicle.
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sassyangel
Drama Llama
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Post by sassyangel on Apr 29, 2020 20:06:41 GMT
Chinese companies have been buying up US companies for years. It's been slow and gradual, but it's been big. Some of the surprises that I found were GE, Smithfield Foods, and AMC. I can't tell when this chart is dated, but it shows quite a few acquisitions in the Energy field, and I completely expect China to come in and start another buying frenzy. money.cnn.com/interactive/economy/chinese-acquisitions-us-companies/China's trouble, has been, and if we as a country don't wake the fuck up it's only going to get worse.
I wanted to add that there's been a shortage of swabs necessary for these Covid-19 tests, and I read some components come from China.
I also read yesterday we can expect a continued shortage of cleaning/disinfecting supplies. For example, Lysol gets some of it's components from China.
Don't forget China threatened to cut off supplies of our much needed medicine.
I’ve never understood why we would allow foreigners to own property or to buy America companies. Other countries don’t so why do we. Not true, Australia has allowed a ton of foreign ownership in the last 10 years, a lot of it Chinese. Pretty sure they’re not alone. |
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Post by sunshine on Apr 29, 2020 22:52:45 GMT
I can't tell when this chart is dated, but it shows quite a few acquisitions in the Energy field, and I completely expect China to come in and start another buying frenzy. It's not just companies they've been buying. They have been buying into major oil projects with multiple partners for well over 10 years. When companies get desperate, they really don't care who they sell to as long as they are the highest bidder. It's a way for them to come in the backdoor so to speak. Have you ever looked at what they've been buying up in Africa for years?
Interesting about the oil projects, I didn't know about that. When I get some time I'll look into what they've been up to in Africa. Thanks for sharing!
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Post by Deleted on Apr 30, 2020 21:33:00 GMT
Smartest guys in the room? Or heads in the (tar) sand? "The Humbling of Exxon The industrial giant missed the shale boom, overspent on projects, and saw its debt rise to $50 billion as its stock plummeted. Darren Woods, chief executive officer of ExxonMobil Corp., was chipper as he bandied with industry analysts on Jan. 31 about his company’s poor 2019 performance. The coronavirus had yet to spread far beyond China, but Woods had prepared to say a few words about it if anyone asked. No one did. As for the lower earnings and sliding share price, Woods assured his conference-call audience that things were under control. Oil prices languishing in the $60-a-barrel range weren’t a problem but an opportunity. “We know demand will continue to grow, driven by rising population, economic growth, and higher standards of living,” Woods said. “We believe strongly that investing in the trough of this cycle has some real advantages.” He went on to describe how Exxon would spend in excess of $30 billion on exploration and other projects in 2020, more than any other Western oil company. “While we would prefer higher prices and margins,” he said, “we don’t want to waste the opportunity this low-price environment provides.” Over the next several weeks, Covid-19 ravaged the oil industry by vaporizing global demand just as Russia and Saudi Arabia launched a price war. Investors were stunned to see oil fall to an 18-year-low of $22.74 a barrel at the end of March. An agreement aimed at cutting output and boosting prices failed to halt the slide, and on April 20 some oil contracts were trading for less than zero—sellers were paying buyers to take the crude. The fallout for producers large and small has been devastating. “You’re seeing fragilities exposed,” says Kenneth Medlock III, senior director of the Center for Energy Studies at Rice University’s Baker Institute for Public Policy. “Covid-19 is doing things that nobody could have imagined.” Perhaps no company has been humbled as profoundly by recent events as Exxon, the West’s largest oil producer by market value and an industry paragon that sets the bar not just for itself but for its competitors. And the pandemic isn’t primarily to blame; the culprit is just as much the company itself." www.bloomberg.com/features/2020-exxonmobil-coronavirus-oil-demand/ |
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Post by Deleted on May 1, 2020 17:09:39 GMT
Trump admin considering a huge 'call option' to frackers as a way to support oil producers whose prices are out of the market (so much for 'the invisible hand') The US fracking industry was built on a platform of at least $50-60 oil. It's bleeding fast. And Trump will consider any moves he can to prop them up - even though economics and 'globalism' would say 'get it from where it's cheapest'. Certainly no one moved heaven and earth to protect all the US textile, furniture and other manufacturing that moved offshore and killed towns and cities all over the country. But oil is different in terms of national protection and need. BUT a call option idea is ridiculous. US frackers don't need a call option to begin to produce again when prices rise, they'll produce again when prices rise. The US could nationalize the key assets in the US - but that's too socialistic-y for the Trump admin. The Trump admin wants it both ways - the market should rule all. Except for oil. Which is key for national defense. But even thought it's key for national defense, we still shouldn't nationalize it. The mental gymnastics one must do to avoid the problems of capitalism for ESSENTIAL GOODS AND SERVICES. finance.yahoo.com/news/trump-developing-plans-aid-oil-080000489.htmlIn the meantime, Trump is more than willing to threaten the Saudis to keep their production down. "For the U.S., if this means that Saudi Arabia loses out to U.S. shale producers by keeping oil prices up but losing out on export opportunities to U.S. firms then that is just the price that the House of Saud must pay for the continued protection of the U.S. - politically, economically, and militarily. As U.S. President Donald Trump has made clear whenever he has sensed a lack of understanding on the part of Saudi Arabia for the huge benefit that the U.S. is doing the ruling family: “He [Saudi King Salman] would not last in power for two weeks without the backing of the U.S. military.” Trump has a very good point, as it is fair to say that without U.S. protection, either Israel or Iran and its proxy operatives and supporters would very soon indeed end the rule of the House of Saud." oilprice.com/Energy/Energy-General/Trump-Could-Use-Nuclear-Option-To-Make-Saudi-Arabia-Pay-For-Oil-War.html |
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Post by Deleted on May 17, 2020 14:05:03 GMT
“Royal Dutch Shell is the first oil major to get honest: Our business model is broken and we are a lousy investment. Slashing its dividend for the first time since World War II, Shell broke the spell on investors who had become so hooked on the promise of easy quarterly cash that they ignored the signposts of a sector entering its terminal phase. After the news, Warren Buffett validated voices that have been warning investors to pull out of fossil fuels for years: “Any shareholder in any oil-producing company, you join me in having made a mistake.” www.frontpagelive.com/2020/05/11/big-oil-and-investors-knew-a-crash-was-coming-covid-19-just-sped-up-the-clock/ |
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Post by Deleted on Sept 16, 2020 13:57:51 GMT
"The shift to low-carbon energy will transform oil companies, and BP wants to be at the vanguard of the industry in making those changes, having set a net-zero target for 2050 earlier this year. But there's one thing BP doesn't want to change: the returns it offers its investors. In a three-day event for investors this week, BP provided more detail on how it hopes to build 50 gigawatts of renewable power capacity while pocketing the kind of returns it's used to. As it rethinks its strategy under new CEO Bernard Looney, BP has temporarily halved its dividend. But that "reset" isn't meant to be forever. BP is targeting returns of 8 to 10 percent from its low-carbon power business. That compares to an average margin for oil and gas exploration of 8.5 percent, according to NYU's Stern School of Business. “Can we deliver the 8 to 10 percent returns from renewables? The answer is very simply: yes," Looney said this week. "We actually believe we can do better; these returns could turn out to be conservative.".. Solar may dominate BP's plans for renewables today, but it's not the only show in town. BP's recent strategic partnership with Equinor in the U.S. offshore wind market gives it a stake in another 4.4 GW portfolio, and Sanyal confirmed that BP wants to expand into other offshore wind markets, although he did not provide further details." www-greentechmedia-com.cdn.ampproject.org/c/s/www.greentechmedia.com/amp/article/how-bp-plans-to-make-oil-like-returns-from-renewablesBP has seen the writing on the wall, as have Shell and other international oil majors. You'll be able to tell your grandkids you were around for the beginning of the end of oil (for transportation and electrification - a much smaller 'oil industry' will be around for plastics and jet fuels for a while after that) www-greentechmedia-com.cdn.ampproject.org/c/s/www.greentechmedia.com/amp/article/how-bp-plans-to-make-oil-like-returns-from-renewables |
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Post by iamkristinl16 on Sept 16, 2020 14:42:24 GMT
I don’t fully understand the workings and issues of the oil industry but it seems shortsighted that someone who is voting for Trump because he says he supports the oil Industry is pretty short-sighted since the handling of the virus has impacted the industry greatly. Is that correct?
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Post by revirdsuba99 on Sept 16, 2020 15:24:01 GMT
Plus if US oil collapses completely, we are at the mercy of Russia and the middle east along with Mexico and...honestly I don'tknow who else. They then control us. yup |
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Post by **GypsyGirl** on Sept 16, 2020 15:50:32 GMT
the handling of the virus has impacted the industry greatly It may be a factor, but it is by no means the main reason that oil prices are where they are. The huge plunge in March was a direct result of Russia refusing to get on board with OPEC's desire to cut production due to the glut of oil due to the disruption caused by covid. Note that Russia is not an OPEC member, but has managed to gain veto power over OPEC policies in recent years. They are the second most powerful oil producing country. It's worth people taking time to do some research on the oil industry and the politics behind it. There is so much more going on than you hear in the 30 second sound bites that constitutes news coverage these days. |
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Post by papercrafteradvocate on Sept 16, 2020 15:56:23 GMT
we are at the mercy of Russia and the middle east along with Mexico and...honestly I don'tknow who else. China There is about to be a big shopping spree going on as these companies are sold off for pennies on the dollar. Now is the time to be very aware of who is coming in and buying them up. Yep. Trump administration weakened the USA. And I think he did it on purpose. Trump is indebted to at least one Russian oligarch—-who paid close to $80-$90 million for a Florida property that trump could not even sell for $30 million. He was close to defaulting (and fucking over America banks) He took those funds from the Russian, and now owes.... |
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Deleted
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Post by Deleted on Sept 16, 2020 17:49:00 GMT
I don’t fully understand the workings and issues of the oil industry but it seems shortsighted that someone who is voting for Trump because he says he supports the oil Industry is pretty short-sighted since the handling of the virus has impacted the industry greatly. Is that correct? Here's a quick graphic to keep in mind about the worldwide oil market. That huge uptick in US production was due to difficult and expensive extraction techniques that only make profits w/a particular floor.  That newer US shale needs about a $40 floor to be profitable (with about half a dozen profitable down to $30). Saudi Arabia about $20-$30 (but $80 to be able to use it to finance its budget in addition to operating costs) and Russia about $10-$20 (but it won't like it and also needs around $40 to use excess funds for gov't revenues). Trump's buddy Putin has been hoping to bankrupt US Shale for a while. It's a game of chicken to be last man standing. www.marketwatch.com/story/why-us-shale-oil-producers-are-at-the-heart-of-the-saudi-russia-price-war-2020-03-09oilprice.com/Energy/Energy-General/Russias-Plan-To-Bankrupt-US-Shale-Could-Send-Oil-To-60.html |
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Deleted
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Post by Deleted on Sept 16, 2020 18:56:28 GMT
Meant to include this one: "And it’s not all sensationalism or overreaction, either. Even Big Oil itself seems to see the writing on the wall, and has been moving swiftly away from oil exploration towards more lucrative ventures now that “Big Oil’s Most Profitable Business Is No Longer Oil.” In Europe especially, Big Oil seems to be accepting the inevitability of an impending global energy transition and is taking the first steps to transform itself into Big Energy. “Nine years ago, ExxonMobil was the most valuable corporation in the world,” The Houston Chronicle wrote on Friday. “Last week, Dow Jones removed the stock from its industrial index that is supposed to represent the U.S. economy. Exxon’s market capitalization has dropped from $400 billion in 2011 to just $175 billion today, and the oil business is no longer as important to the U.S. economy... But Big Oil in the United States has responded very differently to its decline than its European counterpart. Instead of innovating and evolving, the United States’ response seems to be: deny...until you die. “Oil executives talk a lot about how their industry will bounce back after the coronavirus pandemic passes, but the truth is their business is in long-term, secular decline,” writes the Houston Chronicle. “No matter who wins November’s elections, we need to find new businesses to replace the oil and gas industry in Texas to avoid economic decay.” Lucky(ish) for the oil industry, however, they are not the first energy sector to age out of the United States economy. For a little lesson from history, U.S. oil needs to look no further than the U.S. coal sector. “Old timers like to say the oil business has seen bad times before, and that every bust is followed by a boom. [...] Once the price of crude jumps, Texas will be rolling in money again,” continues the Chronicle report. “You know who used to talk that way? Coal company executives.” And we all know how that story ended.”" oilprice.com/Energy/Energy-General/Is-Big-Oil-Doomed-To-Repeat-The-Coal-Industrys-Mistakes.html |
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Post by Merge on Sept 16, 2020 19:06:20 GMT
I don't understand why this is a political issue to some in the US. I get the geopolitics of it, but it seriously astounds me that some people think that one party or another is somehow going to protect oil companies from the coming changes.
Note that the article @zingermack linked above quotes the Houston Chronicle. It's not like it's some disconnected "coastal elite" or bike-riding Portland hipster talking about the decline of oil. This is real in Texas. Trump isn't going to fix it. Neither is any Democrat. Companies have to pivot and we have to invest in helping to re-train employees where necessary.
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Post by hop2 on Sept 16, 2020 19:49:22 GMT
I don’t fully understand the workings and issues of the oil industry but it seems shortsighted that someone who is voting for Trump because he says he supports the oil Industry is pretty short-sighted since the handling of the virus has impacted the industry greatly. Is that correct? Yes, they are voting for the man that is handing a US oil collapse to Russia on a silver platter. |
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