bradbrennan Posted January 7, 2015 Author Share Posted January 7, 2015 Still waiting for the fallout Link to comment Share on other sites More sharing options...
dpodiluk Posted January 7, 2015 Share Posted January 7, 2015 Still waiting for the fallout Already started here, one of the Calgary BOTL got laid off this week... Link to comment Share on other sites More sharing options...
bradbrennan Posted January 7, 2015 Author Share Posted January 7, 2015 Already started here, one of the Calgary BOTL got laid off this week... I've heard some here, but it's bound to get ugly here Link to comment Share on other sites More sharing options...
JohnnyO Posted January 7, 2015 Share Posted January 7, 2015 "We cant produce oil at less than $80 a barrel because there's no way we can afford the champaign, caviar and skiing trips to France without making you schnooks pay for it". John Link to comment Share on other sites More sharing options...
Fosgate Posted January 7, 2015 Share Posted January 7, 2015 By the sounds of it the Bakken Reserve between the US and Canada is going to suffer the most. I was watching the news that the Saudis can sustain $15-20 a barrel for a long time. Russia and produce at $20-25 a barrel and the Bakken reserve is between $55-60 a barrel. I see U.S. Oil getting into some serious problems if they don't get some blessing to tell the EPA and Environmental groups to stick it so they can start exploring and tapping some of the protected areas. Of course with the green movement it will fall on deaf ears until people people start freezing to death. Obviously Joe Public could care less at cheap gas and "evil corporations" are sucking fumes. They obviously tolerate high prices but wait till they put the next squeeze on us and jack up the prices again. Link to comment Share on other sites More sharing options...
Lotusguy Posted January 7, 2015 Share Posted January 7, 2015 I say it again - it will encourage people to waste energy again and then when the inevitable rise comes, the screaming will be deafening... 1 Link to comment Share on other sites More sharing options...
bradbrennan Posted January 7, 2015 Author Share Posted January 7, 2015 sadly I'm waiting for the screaming to pick up here as people get laid off, someone commented in the paper the other day "we're making too much money to worry about oil prices" ouch Link to comment Share on other sites More sharing options...
FLB03TT Posted January 7, 2015 Share Posted January 7, 2015 sadly I'm waiting for the screaming to pick up here as people get laid off, someone commented in the paper the other day "we're making too much money to worry about oil prices" ouch You damn well better worry about oil prices. Stupid, complacent talk like that usually comes from someone headed for the poor house. Link to comment Share on other sites More sharing options...
bradbrennan Posted January 7, 2015 Author Share Posted January 7, 2015 You damn well better worry about oil prices. Stupid, complacent talk like that usually comes from someone headed for the poor house. yeah I'm guessing a couple more months and many of the out of state people here won't have enough money to go home Link to comment Share on other sites More sharing options...
Fosgate Posted January 8, 2015 Share Posted January 8, 2015 Good luck with that Brad. Already a tough crowd up there, cut off money and it will get ugly up there. Link to comment Share on other sites More sharing options...
CanuckSARTech Posted January 8, 2015 Share Posted January 8, 2015 I think the numbers Fosgate quoted are a bit turned around. I've seen some Canadian and BBC reporting on it, and it shows a reversal, with the Russians at the lower amount. Hey, I feel (somewhat) sorry for fellow Canucks (and Yanks) getting laid off in the oil business. Alberta, Montana, Texas, etc., etc. All areas hit hard by this. However..... I SAY KEEP ON DROPPIN'!!!!!! The price has been so damn high for so damn long that people should have MORE than had the foresight to pad their pockets and bank accounts a bit, to save for a rainy day. I see TONS of guys going out west, being out there for 4 months, and then spending $50k on a brand new truck, not saving any money, and saying, "it'll all be there next week". But the best part.... (...and sorry to our Russian brothers....) ....but this is hitting the Russians and the ruble SO DAMN HARD that maybe it'll get them to get their rears out of Ukraine and the Crimean penninsula. With everything else going on in the world, that's one crisis that needs to be shelved. 1 Link to comment Share on other sites More sharing options...
CaptainQuintero Posted January 8, 2015 Share Posted January 8, 2015 The Russians have been aware and planning for any forced oil price drop since the 1998 crisis. They can weather the storm longer than the political will in Washington keeping the price low. Trading oil for goods with China and India is just stretching the ability to weather the storm even longer. You will know when things are starting to actually hurt Russia when they start testing Europe's resolve to follow Washington's orders in terms of sanctions etc by turning off the tap to Europe or spiking energy prices etc. Link to comment Share on other sites More sharing options...
headstand Posted January 8, 2015 Share Posted January 8, 2015 I think the numbers Fosgate quoted are a bit turned around. I've seen some Canadian and BBC reporting on it, and it shows a reversal, with the Russians at the lower amount. Hey, I feel (somewhat) sorry for fellow Canucks (and Yanks) getting laid off in the oil business. Alberta, Montana, Texas, etc., etc. All areas hit hard by this. However..... I SAY KEEP ON DROPPIN'!!!!!! The price has been so damn high for so damn long that people should have MORE than had the foresight to pad their pockets and bank accounts a bit, to save for a rainy day. I see TONS of guys going out west, being out there for 4 months, and then spending $50k on a brand new truck, not saving any money, and saying, "it'll all be there next week". But the best part.... (...and sorry to our Russian brothers....) ....but this is hitting the Russians and the ruble SO DAMN HARD that maybe it'll get them to get their rears out of Ukraine and the Crimean penninsula. With everything else going on in the world, that's one crisis that needs to be shelved. But, but, but, Keith, these low oil prices are killing my cigar buying ability. I suppose I could sell the truck, but what would my wife say. Rock and a hard place for me. Maybe I should go long on Nicoretes instead Link to comment Share on other sites More sharing options...
headstand Posted January 8, 2015 Share Posted January 8, 2015 I'm having the same "issue". Man, oh man! To bring some perspective to the discussion I would like to restate what I said in an earlier post: the global surplus is sitting at around 2-3% per day. That's a few hours of over production per day. The world is not awash in cheap oil. There is a decent amount of expensive oil, but don't be fooling yourselves that we are in for a decade of cheap oil. The business is very capital intensive, so when the investment money drops off and the low cost benefits kick in for the global economy you can expect a mad dash to 80$ a barrel. If I had a pile of spare cash I would invest wisely for the near term, or buy more cigars - tough call between the two. 1 Link to comment Share on other sites More sharing options...
Fosgate Posted January 9, 2015 Share Posted January 9, 2015 Could be a simple business tactic. Have to remember there is no way foreign countries can break up OPEC's global monopoly. Think of how the Rockefeller and the old monopolies in the U.S. did it. You either buy new entries to the market or you cause them to fail. Do whatever it takes to dominant or keep the market yours. The U.S. has been trying to get off of foreign oil dependency and the Bakken showed promise. Russia's oil fields have also taken a chunk out of the market. Maybe it's Saudi taking orders to squeeze Russia, order it is glad to carry out. Link to comment Share on other sites More sharing options...
headstand Posted January 9, 2015 Share Posted January 9, 2015 Is it too simplistic to think that the oil industry is reacting to declining demand due to people going green with their new vehicle purchases? I know Shlomo you don't think so but the fact is that truck and suv purchases are on the climb currently partly due to the low fuel costs. Once everyone has trucked up and are feeling comfortable with fuel costs it will be time for big oil to slow down production, jack up prices and make back any current losses tenfold. I know there's also some politics involved but this to me looks like short term sacrifice for long term gain for oil producers. Clint, It has been popular sport to suspect oil companies of high level collusion to screw the working man, but from my time in the business I can assure you they are far more interested in keeping investors happy than messing with consumers. If they get any pleasure screwing someone over, it will be in out performing or out dealing their competitors. Even on that point it is usually pretty subdued for the majors because today's competitor is tomorrow's partner. Nah, there is way too much investor scrutiny for oil companies to behave like the villains in an X-Files episode. Alan 3 Link to comment Share on other sites More sharing options...
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