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Message
re: Oil dive deepens to 12-year low; could hit $20 on China fears
Posted on 1/12/16 at 9:31 pm to yellowfin
Posted on 1/12/16 at 9:31 pm to yellowfin
quote:
The one I was talking about is #1 on that list
Those list are pretty useful, but it says nothing of the MC Banks, Patterson State Banks, Synergy Banks, etc.
The local banks in southern LA are all going to be in a ton of trouble if it keeps up. It is one of the primary reasons you've seen banks like Iberiabank try to rapidly expand their presence in other markets in an attempt limit their exposure to O&G.
1
Posted on 1/12/16 at 9:51 pm to slackster
#4 on that list is the parent company of Hancock Bank as well as Whitney, THE local banks in S. MS and parts of LA.
They also hold many community banks from Fla. to TX. some folks are going to be amazed at how far away the losses will be felt.
LINK
As I have said before the reduction of billions of dollars of GDP in the poorest region of our country is going to leave no one in the region unharmed, it is foolish to believe otherwise.
They also hold many community banks from Fla. to TX. some folks are going to be amazed at how far away the losses will be felt.
LINK
As I have said before the reduction of billions of dollars of GDP in the poorest region of our country is going to leave no one in the region unharmed, it is foolish to believe otherwise.
Posted on 1/12/16 at 10:04 pm to Jenar Boy
quote:Sucks for Louisiana. Great for the rest of us.
Almost 2% of the Louisiana population
Posted on 1/12/16 at 10:11 pm to Henry Jones Jr
quote:
Sucks for Louisiana. Great for the rest of us.
We've had this discussion numerous times in this thread already. Not going to rehash it again with another ignorant poster.
Posted on 1/12/16 at 11:45 pm to Jim Rockford
I am curious what "energy loans" consist of.
Iberia, for example, has significant loans outstanding to inland marine, supply houses (that supply more than just the oilfield but their primary customers are the oilfield), catering companies, etc. All those loans are knee deep in the oilfield yet are they considered "energy loans"?
Iberia, for example, has significant loans outstanding to inland marine, supply houses (that supply more than just the oilfield but their primary customers are the oilfield), catering companies, etc. All those loans are knee deep in the oilfield yet are they considered "energy loans"?
Posted on 1/12/16 at 11:52 pm to Asgard Device
For the oil people I have a question:
It seems to me the dropping prices should be dramatically offset by businesses (and perhaps government entities) buying more fuel for surplus. For example, wouldn't a business having heavy equipment want to purchase surplus fuel to store on-site and all that?
It seems to me the dropping prices should be dramatically offset by businesses (and perhaps government entities) buying more fuel for surplus. For example, wouldn't a business having heavy equipment want to purchase surplus fuel to store on-site and all that?
Posted on 1/12/16 at 11:56 pm to sullivanct19a
quote:
It seems to me the dropping prices should be dramatically offset by businesses (and perhaps government entities) buying more fuel for surplus. For example, wouldn't a business having heavy equipment want to purchase surplus fuel to store on-site and all that?
not really, fuel has somewhat of a a shelf life and storage is expensive. While possible the expense of it outweighs the benefit.
Posted on 1/12/16 at 11:59 pm to cave canem
Agree with this. Ultimately, it is money sitting on the shelf. Someone who knows about the shelf life and their business can maximize their profits by taking advantage of this though.
Posted on 1/13/16 at 12:01 am to cave canem
quote:
not really, fuel has somewhat of a a shelf life and storage is expensive. While possible the expense of it outweighs the benefit.
What about all the reserves the federal government has? That's what made me think of this - I thought if the gov can do that, it must be storage-capable.
Posted on 1/13/16 at 12:04 am to sullivanct19a
On a somewhat related note, EWE proposed the Louisiana buy oil futures during the eighties bust. The state would have made a killing a few years later.
Posted on 1/13/16 at 12:07 am to sullivanct19a
quote:
What about all the reserves the federal government has? That's what made me think of this - I thought if the gov can do that, it must be storage-capable.
I'm not a chemical engineer or anything, but I suspect crude is more stable than refined products.
Posted on 1/13/16 at 12:09 am to sullivanct19a
quote:
What about all the reserves the federal government has? That's what made me think of this - I thought if the gov can do that, it must be storage-capable.
The researves are crude not refined fuel. the crude can sit there for eternity before being pumped out and refined, refined products don't store as easy. Again it is not that it is impossible just it is very expensive.
Think about it this way, if it cost a business 20 grand to build a 10,000 USG storage/treatment facility you just effectively added $2 a gallon to the price of the stored fuel, not enough juice left for the squeeze. These numbers are a mere representation but illustrate the point.
Posted on 1/13/16 at 12:29 am to sullivanct19a
quote:
It seems to me the dropping prices should be dramatically offset by businesses (and perhaps government entities) buying more fuel for surplus. For example, wouldn't a business having heavy equipment want to purchase surplus fuel to store on-site and all that?
Companies do this all the time, but they use futures contracts rather than the physical commodity.
There is a risk that the market price at delivery will be even lower than the price of the futures contract, but companies use futures to effectively limit their expense exposure.
Posted on 1/13/16 at 1:04 am to sullivanct19a
quote:
For the oil people I have a question:
It seems to me the dropping prices should be dramatically offset by businesses (and perhaps government entities) buying more fuel for surplus. For example, wouldn't a business having heavy equipment want to purchase surplus fuel to store on-site and all that
Countries and businesses are not stepping in and doing this which why some folk think the shite is about to hit the fan. If the worlds largest economies were robust wouldn't they be stepping in and buying a bunch at $40 or $50? If they were, that would be propping the price of oil up so they aren't. Plunging oil prices aren't causing a global recession but the fact that no one is buying enough oil to prop prices up may be an indicator that one is coming.
Posted on 1/13/16 at 2:16 am to cave canem
quote:
The researves are crude not refined fuel. the crude can sit there for eternity before being pumped out and refined, refined products don't store as easy. Again it is not that it is impossible just it is very expensive.
Think about it this way, if it cost a business 20 grand to build a 10,000 USG storage/treatment facility you just effectively added $2 a gallon to the price of the stored fuel, not enough juice left for the squeeze. These numbers are a mere representation but illustrate the point.
This and the other responses all make sense.
Not sure what to think about the absence of futures as someone else described. I know wrong board but I do think a lot of this is Obama's fault - I don't think people look at him as sane, rational, and intelligent. But as POTUS everyone has to watch what he does. I mean, the guy basically said "come at me bro" to anyone that doesn't buy his stance on global warming. And every day, more and more information and evidence comes out showing his stance is flawed if not outright fraudulent. And, only the dumb and the insane would have their space program and military start parroting global warming as a major point of emphasis. Climate issues belong with other departments and agencies. Such behavior indicates someone with an agenda, not a strategy.
All of this is very serious, but it's also a "game" and in accordance with Game Theory, there's a dependence on rational actors for how people make their decisions. People don't see Obama as a rational actor so they're going into contingency mode.
Oil isn't the only thing he's been affecting. Coal has suffered as well. It's the middle class that pays the price for his behavior.
Posted on 1/13/16 at 2:48 am to sullivanct19a
quote:
I don't think people look at him as sane, rational, and intelligent.
You're suffering from confirmation bias. It's one thing to disagree with someone's policies. It's another to think he, and anyone who supports him, is a lunatic. The former is a reasonable position to hold. The latter leads to waking up the morning after an election wondering WTF happened.
There are people out there who think differently than you. That doesn't make them any less sane, rational, and intelligent than you consider yourself to be. If everyone kept that in mind, we'd all get along a lot better.
This post was edited on 1/13/16 at 2:52 am
Posted on 1/13/16 at 4:31 am to sullivanct19a
quote:
Not sure what to think about the absence of futures as someone else described
No one buys futures while the price is still falling my friend.
When we reach bottom the buying frenzy will begin, the big players know there is still room to drop.
Posted on 1/13/16 at 4:52 am to cave canem
I read an article that RBS was telling their clients to get the frick out of stocks and into bonds because they are projecting $10/barrel coming soon. Damn
LINK
LINK
This post was edited on 1/13/16 at 4:54 am
Posted on 1/13/16 at 5:11 am to tigerpimpbot
How long until the feds make a move to increase taxes on gas?
Posted on 1/13/16 at 6:05 am to fightin tigers
Not sure about the Feds, but the La legislature increased gas taxes last session.
With JBE as the new Guv, get ready for it again.
With JBE as the new Guv, get ready for it again.
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