...such high prices would just bring the shale production back and a recession...you are dumb to want such high prices as very few would benefit and many would be hurt including yourself.
However, the 2,650-hectare (6,540-acre) fire, which was discovered on May 1, is not close to any oil sands facilities, according to Alberta government online maps.
...I don't own any FCX long or short. Just pointing out it may not be as great a slam dunk as you think.
...you are right they are writing off their oil and gas, but the writeoff applies to 2016, not 2015. Their income in 2015 is as I stated....a loss of more than $12 billion. That was strictly due to low commodity prices and we still have the low prices without much hope of major increase.
...however the company lost quite a bit of money last year to the tune of $12,236,000,000 according to Yahoo finance...so, it would certainly need for commodity prices to rise a lot to be profitable.
Three days ago, Pioneer surprised oil market watchers when it not only said that it has already produced more oil than it had initially forecast, but that once crude returns to $50, all systems are go. This is what it said in its Q1 press release:
producing 222 thousand barrels oil equivalent per day (MBOEPD), of which 55% was oil; production grew by 7 MBOEPD, or 3%, compared to the fourth quarter of 2015, and was significantly above Pioneer’s first quarter production guidance range of 211 MBOEPD to 216 MBOEPD; oil production grew 10 thousand barrels oil per day during the quarter, or 9%, compared to the fourth quarter;
expecting to deliver production growth of 12%+ in 2016 compared to the Company’s previous production growth target of 10%; the higher forecasted growth rate reflects improving Spraberry/Wolfcamp well productivity;
expecting to add five to ten horizontal drilling rigs when the price of oil recovers to approximately $50 per barrel and the outlook for oil supply/demand fundamentals is positive
Then yesterday it was another US shale giant to admit that $45 oil is good enough, and that it is "increasing its production forecast to a range of 131,400 BOE/d to 136,900 BOE/d" adding that "with the majority of completions scheduled for the second half of the year, the Company expects to realize the full production benefit in late 2016 and 2017."
It was not immediately clear if Pioneer and Whiting were restoring production due to recently implemented hedges. What is clear is that as the EIA reports, drilling costs have tumbled in recent years, which suggests that breakeven drilling prices have followed suit.