1.1 OPEC's oil producers must stop all the 'bickering'
1.2 Peak oil
1.3 BP sees $50 oil for three years
-----------
1.1 OPEC'S oil producers must stop all the 'bickering' (1/1/2015)
The question is, who is responsible for the price war that has led to the collapse in prices over the past two months? According to data, exporting countries from within and outside Opec are offering discounts for the sale of their oil to retain customers, especially Asian ones.
http://www.albawaba.com/
1.2 Peak oil
1.3 BP sees $50 oil for three years
-----------
1.1 OPEC'S oil producers must stop all the 'bickering' (1/1/2015)
The question is, who is responsible for the price war that has led to the collapse in prices over the past two months? According to data, exporting countries from within and outside Opec are offering discounts for the sale of their oil to retain customers, especially Asian ones.
If the discount
offered by GCC states is only $2 a barrel, Iran is offering nearly $3.5 a
barrel. Iraq also provides a $4 discount and to further complicate
matters decided to increase production 4 million barrels a day from 3
million, at a time when the other producers are demanding GCC countries
reduce production.
However, it is a
collective responsibility of oil producers — both inside and outside
Opec. To lessen the repercussions on the economies of oil-producing
economies, it is important to stop exchanging unjustified and useless accusations, which only helps to stoke the oil crisis.http://www.albawaba.com/
-------
But smart people don’t invest in things that break-even. I mean, why
should I take a risk to make no money on an energy company when I can
invest in a variable annuity or a REIT that has almost no risk that will
pay me a reasonable margin?
Oil prices need to be around $90 to attract investment capital. So,
are companies OK at current oil prices? Hell no! They are dying at these
prices. That’s the truth based on real data. The crap that we read that
companies are fine at $60/barrel is just that. They get to those prices
by excluding important costs like everything except drilling and
completion. Why does anyone believe this stuff?
If you somehow don’t believe or understand EURs and 10-Qs, just get on Google Finance and look at third quarter financial data for the companies that say they are doing fine at low oil prices.
http://oilprice.com/
1.2 Peak Oil (2/1/2015)
Should US shale oil production actually fall next year, then global “all liquids” production could fall too. A few astute analysts are already mulling whether just perhaps 2014 will someday be recognized as the all-time high for global oil production or in other words “peak oil.” It is still years too early to pronounce that an all-time peak in what we now call “all liquids” has occurred, but it is an interesting thought. The situation may just be worse than it seems.
http://fcnp.com/2014/12/31/
1.3 BP sees $50 oil for three years (19/1/ 2015)
If you somehow don’t believe or understand EURs and 10-Qs, just get on Google Finance and look at third quarter financial data for the companies that say they are doing fine at low oil prices.
http://oilprice.com/
1.2 Peak Oil (2/1/2015)
Should US shale oil production actually fall next year, then global “all liquids” production could fall too. A few astute analysts are already mulling whether just perhaps 2014 will someday be recognized as the all-time high for global oil production or in other words “peak oil.” It is still years too early to pronounce that an all-time peak in what we now call “all liquids” has occurred, but it is an interesting thought. The situation may just be worse than it seems.
http://fcnp.com/2014/12/31/
1.3 BP sees $50 oil for three years (19/1/ 2015)
The reason BP expects the oil price to stay in the range of $50 to
$60 for some years is for reasons you have read about here - it is
persuaded that the Saudis, Emiratis and Kuwaitis are determined to
recapture market share from US shale gas.
This means keeping the volume of oil production high enough such that the oil price remains low enough to wipe out the so-called froth from the shale industry - to bankrupt those high-cost frackers who have borrowed colossal sums to finance their investment.
This does not simply require some US frackers to be bankrupted and put out of business, but also that enough banks and creditors are burned such that the supply of finance to the shale industry dries up.
Only in that way could Saudi could be confident of reinvigorating its market power.
http://www.bbc.com/news/
This means keeping the volume of oil production high enough such that the oil price remains low enough to wipe out the so-called froth from the shale industry - to bankrupt those high-cost frackers who have borrowed colossal sums to finance their investment.
This does not simply require some US frackers to be bankrupted and put out of business, but also that enough banks and creditors are burned such that the supply of finance to the shale industry dries up.
Only in that way could Saudi could be confident of reinvigorating its market power.
http://www.bbc.com/news/
No comments:
Post a Comment