guaranteed their debt? well if you dont pay the bondholders of any company they can send a firm into bankruptcy so thats about all the guarantee anyone could hope for. what kind of guarantee are you talking about? a verbal promise or something of that nature?
i checked and it looks like the record going out to the 80s at least. if the gap keeps widening it could create US blockade runners slipping out under the cover of night to sell their vastly underpriced oil on the high seas as the stockpile keeps increasing.
it is interesting to note that the present CEO of SDRL john fredricksen made his original fortune running the blockade during the iran/iraq war.....he was known to be the lifeline to the ayatollah....lol..that old pirate.
I agree with Kurt on oversupply we are out of storage for all the oil. If you have nowhere to store the oil you dump the oil cheap and hope your supply is bought. Then you can start raising the price on your production because you have storage and hopefully some of the wells will slow down on production without anymore new drilling. Nobody has yet to include the lost driving in the northeast with all the cold and snow. This will compound the problem we already have with the extra oil storage.
not sure how relavent that would be anyway kurt since the US produces about 10 million now and uses about 23 million/day. the alaskan oil gets shipped to japan if i am not mistaken but that is only so we can buy what the japanese were buying from the arabs so that both would get a break in shipping costs.
projections about earnings are a total crapshoot because they are dependent on the price of oil and no one can really honestly predict the precise outcome of these events at this point. i would like to know what assumptions they made about the price of oil that far out to make that earnings estimate of $1.88. i am thinking it would imply an oil price of $60-70 average which is a bit pessimistic in my view. but you generally have the right of it here. if SDRL can survive and keep its debt payments current then i think the stock will be worth at least 20 in 2 yrs.
US produced crude oil is not allowed to be exported without a special permit thus the price difference due to crude oil oversupply on the Gulf Coast and Cushing.
SA just increased output and so did Libya....oh well maybe on Fryday you tart. Oil down over 1 percent.
They are both light sweet crude but WTI is lighter and sweeter than Brent. My guess the difference is because Brent is north sea oil and costs more to produce.
they wont lose market share if the frackers cut production first. shale rig count has dropped from 1200 to just under 1000 so far and oil inventories are up. shale derricks have a much shorter lifespan than conventional so the decision to drill again is a much shorter one. my guess is when the saudis see rig count going down enough they will stop dumping and maybe even cut production themselves to get the price back up.
opec puts out between 28-32 million bpd for the last 10 years or so and the price of oil has gone from 100 to 50. so which is more? 32x50 or 28x100?
They increased production over their stated level, so Brent price should be coming down / WTI is down on glut caused by refinery fires and refinery maintenance and refinery change overs - otherwise it would be 5 to 6 dollars higher.
Sentiment: Strong Buy
The oversupply is less than a days consumption globally. LOL. The only reason OIL is down is because SA talked it down and we are stupid enough to listen.
ivo i appreciate your patience with us and your willingness to teach us but not everyone in here understands how your advanced methods work as you havent elucidated your theories behind how the system works yet really.
well thats not entirely true because if the economy recedes then demand for energy to drive the economic machinery will recede too...but that doesnt seem to be the case here. looks to me like a fight for market share between the frackers and the opec heavyweights. and i dont think it will go the full 15 rounds either.
you own "many" mid and small cap stocks? are we talking about you own a mutual fund here or are you vastly wealthy or do you buy massive amounts of odd lots?