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re: Anyone else tired of listening to oil workers bitch about the cost of oil
Posted on 1/22/16 at 2:06 pm to slackster
Posted on 1/22/16 at 2:06 pm to slackster
Thanks for the correction. Link me to that number, does that include BOE natural gas too? Edit Nevermind, I found it. The numbers in your previous response to me are "petroleum" and there's a separate NG class. I guess I was thinking OPEC vs. Saudi stand alone. Carry on.
This post was edited on 1/22/16 at 2:26 pm
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Posted on 1/22/16 at 2:08 pm to htownjeep
quote:
They choose not this time because they are cheaper producers and can put financial pressure on the U.S. shale market eventually resulting in a lot of bankruptcies
There are many, many other factors.
The biggest factor, as far as I can tell, is that most producers are hamstrung by debt and cannot afford to taper production in hopes that prices will increase when they need cash flow and they need it asap. $30/bbl is better than nothing in their case considering the vast majority of the costs are already sunk into that well and "turning it off or on" is relatively inexpensive at this point.
I don't think Saudi is sticking to their guns in a effort to hurt US producers as much as they're trying to protect their own interests.
The only thing that gives me much hope is that if this thing turns around due to an increase in demand and/or an organic decrease in supply (not just turning off the valve until prices are a little higher), oil is going to go on a tear. Shutting down all of these capital expenditures is going to be a huge windfall for the companies, particularly drillers, that manage to survive this.
Posted on 1/22/16 at 2:17 pm to slackster
quote:Saudi Arabia has so many social programs going on (funded mostly by Aramco) and Aramco itself has so many employee programs going on that they couldn't afford to cut back much.
The biggest factor, as far as I can tell, is that most producers are hamstrung by debt and cannot afford to taper production in hopes that prices will increase when they need cash flow and they need it asap. $30/bbl is better than nothing
If the people got laid off, restless, idle etc then they would have quite a bit of time on their hands and begin to get pretty pissed off. And with terrorist organizations in Yemen, Iran, Syria, etc just chomping at the bit to stage a revolution, the royal family is doing everything to keep that from happening. If they had an instance like Syria or Egypt happen, it would be catastrophic for the Kingdom.
Posted on 1/22/16 at 2:17 pm to slackster
If it's this bad now, I don't even want to think about how bad it'll be when someone figures out a viable alternative fuel/energy source.
Posted on 1/22/16 at 2:17 pm to slackster
Isn't there more nations involved than just Saudi Arabia ?
Posted on 1/22/16 at 2:18 pm to slackster
I am not bitter about the Saudis, as they say on the Wire, "it's all in the game."
However extending an offer to "balance the market" to people who literally cannot accept that offer is an obviously disingenuous PR move. I'm sure they would love to have a real global oil consortium that had true control over prices, but other countries don't like that.
However extending an offer to "balance the market" to people who literally cannot accept that offer is an obviously disingenuous PR move. I'm sure they would love to have a real global oil consortium that had true control over prices, but other countries don't like that.
Posted on 1/22/16 at 2:20 pm to LSUfan0420
Saudi Arabi basically runs OPEC at this point. If the other countries (most notably Venezuela) had any say they would have taken action to scale back production.
Posted on 1/22/16 at 2:26 pm to CorporateTiger
Precisely. For all intents and purposes OPEC goes as Saudi goes.
Posted on 1/22/16 at 2:37 pm to CorporateTiger
quote:
Saudi Arabi basically runs OPEC at this point. If the other countries (most notably Venezuela) had any say they would have taken action to scale back production
Wrong. Saudi Arabia wanted a meeting to discuss just this earlier this month and the other members told them to pound sand. SaA is hurting right now but they can't change the situation.
quote:
The gas hike is just the beginning. Water and electricity prices are also going up, and the government is scaling back spending on roads, buildings and other infrastructure.
Those cuts might sound normal for any government that is running low on cash. But it's especially problematic in Saudi Arabia because the vast majority of Saudis work in the public sector.
About 75% of the Saudi government's budget comes from oil. The price of oil has crashed from over $100 a barrel in 2014 to around $36 currently. Most experts don't expect a rebound anytime soon.
The Saudi government used its vast oil wealth to provide generous benefits to its citizens. When the Arab Spring rocked the Middle East in 2011, the Saudi king spent even more in an effort to subdue any discontent in the country.
LINK
read the links within the link
Posted on 1/22/16 at 2:40 pm to onelochevy
try $100/week for some of us
Posted on 1/22/16 at 2:41 pm to tigerinthebueche
quote:Thanks. That pretty much backed up what I've been saying. I just didn't feel like going and doing the searches
tigerinthebueche
Posted on 1/22/16 at 2:51 pm to htownjeep
Posted on 1/22/16 at 3:12 pm to cdaniel76
quote:
Don't bitch at me because I'm happy that I'm not spending $75 for a tank of gas!
I am guessing you have little in the way of investments, and don't own a business, otherwise the $75 a tank gas would be welcome compared to the beating everyone is taking in the markets, business slow down and falling real estate values in some areas.
Posted on 1/22/16 at 3:16 pm to cdaniel76
So you enjoy seeing thousands of people out of work? You are a special kind of stupid but don't worry it will affect your dumb fricking arse soon. Congrats on being a useless fricking waste of oxygen 
Posted on 1/22/16 at 3:17 pm to EA6B
quote:
I am guessing you have little in the way of investments, and don't own a business, otherwise the $75 a tank gas would be welcome compared to the beating everyone is taking in the markets, business slow down and falling real estate values in some areas.
You think the stock market is off to the worst start ever because of oil prices?
Posted on 1/22/16 at 4:29 pm to GreatLakesTiger24
quote:
You think the stock market is off to the worst start ever because of oil prices?
In you honest opinion, do you think $20/bbl oil in 6 months will mean good things or bad things for the US stock market?
I'm not trying to argue causation, but a further downward move in oil is only going to come via a global slowdown. If oil is $20/bbl in 6 months, you're going to be possibly looking at global recession. If oil is at $50/bbl in 6 months, it is very, very likely that stocks will have rebounded as well.
Look at the correlation between the S&P 500 and oil prices since the start of the year. Many of the forces that are driving oil down are also driving down the overall market. If that turns around for oil, it would likely mean good things for US equities as a group.
Posted on 1/22/16 at 4:58 pm to onelochevy
quote:
Haven't heard much of that. I just see a bunch of people happy to see thousands of people out of work so they can save 20 bucks a week on gas.
thousands of overpaid people. forgive me but i'm not really sure what temp workers expected. the valuable employees are still doing their thing.
i also find it funny that it's a lot of the same people who used to be all about drill baby drill
This post was edited on 1/22/16 at 5:02 pm
Posted on 1/22/16 at 5:34 pm to bmy
quote:
valuable employees are still doing their thing.
Not entirely true
Posted on 1/22/16 at 6:17 pm to Jenar Boy
quote:
So you enjoy seeing thousands of people out of work? You are a special kind of stupid but don't worry it will affect your dumb fricking arse soon. Congrats on being a useless fricking waste of oxygen
People who take joy of any kind in the misfortune of others are just the worst, especially when it's one man to another. It's no different than the neighborhood gossip bitches that celebrate when the super hot neighbor's rich husband divorces her.
A man works hard and does his best to make as much money as he can for his family, gets laid off, and he deserves it? He did something wrong? WTF?
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