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Started By
Message
re: TM: “Houston Is Not Prepared for the Oil Bust“
Posted on 4/20/20 at 8:41 pm to MrLSU
Posted on 4/20/20 at 8:41 pm to MrLSU
quote:
Could be worse you could live in Alaska where those dividend royalties are going to disappear.
Alaska is fricked. If there’s a state that depends on oil more than Louisiana and Texas, it’s Alaska. They can only depend on tourism a couple months out of the year and Corona is probably going to severely mess up their summer.
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Posted on 4/20/20 at 8:42 pm to fallguy_1978
quote:
Louisiana is as fricked as anyone.
Not to worry, baw. We have priceless things like culture and food, right? We’ll all just second line and eat some red beans and it’ll be fine
Posted on 4/20/20 at 8:44 pm to Errerrerrwere
(no message)
This post was edited on 10/22/20 at 7:43 pm
Posted on 4/20/20 at 8:46 pm to Oilfieldbiology
And probably 90% of the workers vote a specific way.
Posted on 4/20/20 at 8:47 pm to Tyga Woods
quote:
Not to worry, baw. We have priceless things like culture and food, right? We’ll all just second line and eat some red beans and it’ll be fine
Your businesses holding up baw? I truly feel bad for people that this has hurt so badly.
Posted on 4/20/20 at 8:48 pm to fallguy_1978
quote:FYI. 34% of Texas electricity is wind generated. If Texas was a country it would be the 5th largest wind generator in the world
Good luck sinking money into these industries.
Posted on 4/20/20 at 8:50 pm to Oddibe
More like 17% according to ERCOT
Posted on 4/20/20 at 8:58 pm to fallguy_1978
quote:
Your businesses holding up baw? I truly feel bad for people that this has hurt so badly.
Fortunately we’ve been able to stay open and I haven’t had to cut back any of my full-time employees. My profits will be zilch for the first two quarters but hopeful for a strong rest of the year.
Posted on 4/20/20 at 9:02 pm to fallguy_1978
quote:
He told me that he was glad he retired when he did (2007 or so).
He missed the best 5 year run in the history of the business from 09-14. My dad retired in 2014....sell high
Posted on 4/20/20 at 9:12 pm to BregmansWheelbarrow
quote:
How can such a giant industry be so unsustainable?
Posted on 4/20/20 at 9:15 pm to MrLSU
quote:
diversify employment into areas such as wind and solar manufacturing
T. Boone invested heavily into wind in Texas during the great recession and lost his wrinkled arse on it.
Posted on 4/20/20 at 9:18 pm to BregmansWheelbarrow
quote:
I remember reading about shell pulling out of that billion dollar LNG deal on the coast. I wonder if they are going to shut down the building at Cameron LNG and what will happen to Sasol. Those are two of the biggest employers in the state.
LNG is an entirely different animal. LNG is affected by gas prices (not crude) and it's long term viability hinges on natural gas being more expensive overseas than it is in the US. That said, if domestic oil production falls dramatically, and associated gas production falls with it, that could harm LNG terminals because domestic nat gas prices would rise - reducing the need to export.
Sasol is a petrochemical complex so again their relationship with crude prices is more complex. Again, they are tied mostly the nat gas, or more specifically ethane, prices.
I will say it is telling that Shell is backing out of LNG. It could just be that they expect to be strapped for cash in the short term, or they see the writing on the wall. There is a TON of private equity money itching to get into the LNG business which scares me if I’m a multinational company with low risk tolerance.
It reminds me of when Dow sold off all of their PVC/chlor-alkali assets right when all of the smaller companies were dumping money into that business due to the high demand for caustic. Dow looked silly at the time but they look like geniuses now. They sold high while a lot of smaller companies are hurting now because of oversupply.
Posted on 4/20/20 at 9:23 pm to fallguy_1978
quote:
Good luck sinking money into these industries.
I hope those industries never take off. Weak arse engines.
Posted on 4/20/20 at 9:36 pm to Errerrerrwere
isnt it engrained in us as little kids that you always need at least 6 months of savings? How can these multi-billion dollar companies not even last 4-6 weeks? Makes zero sense to me.
Posted on 4/20/20 at 10:07 pm to Bristol Dawg
quote:
How can these multi-billion dollar companies not even last 4-6 weeks? Makes zero sense to me.
You think the oil market has only been volatile for 4-6 weeks? YIKES
Posted on 4/20/20 at 10:12 pm to S
Leave the rest of us out of this. 
Posted on 4/20/20 at 10:14 pm to Boring
The oil and gas industry will be fine. Small/Mid size companies will be bought up in west Texas. The Gulf of Mexico majors will hold off on new development. The majors will last like they have for years and a few years from now mid size and small companies will be back.
Posted on 4/20/20 at 10:17 pm to MrLSU
quote:
Or will we harness our considerable talent to diversify employment into areas such as wind and solar manufacturing, data analysis, and gene-based medicine?
fricking texas. Always thinking progressively ahead. Why can't they be like Louisiana and just wait for the federal aid where the politicians get 95% and the population gets the remaining 5.
Posted on 4/20/20 at 10:18 pm to Bristol Dawg
quote:
How can these multi-billion dollar companies not even last 4-6 weeks? Makes zero sense to me.
Oil prices were dropping down to unsustainable levels 12 months ago. Some mid-level US oil companies were only able to pay the interest on loans at previous prices. They were hoping for oil prices to increase in 2020. That obviously isn't happening and they can't pay off their Bank loans now. Even Oxy is in trouble because of their poorly timed aquisiton of Anadarko.
This post was edited on 4/20/20 at 10:19 pm
Posted on 4/20/20 at 10:19 pm to redstick13
And those loans were backed by future reserves.
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