I read that shale producers received over $300B in junk issuance's to further their enterprises in the last couple of years. If a true number this ain't good for some of them for sure. What will this arena look like a year from now I'd love to know.
Morse said wells are much more efficient than they were just a few years ago.
"Each well currently being drilled in the main shale plays produces more than 550 barrels a day," he said, noting that it was 150 barrels on average just several years ago. Now those wells run for three months before the decline starts, and costs are much lower, at $35 to $45 per barrel, in the Bakken of North Dakota and Eagle Ford in Texas.
Gheit said the industry has learned to be more efficient very quickly.
"Only five or six years ago, wells used to take 70, 80, 90 days to compete. Today they take two weeks. That in itself is a huge accomplishment. The same rig instead of drilling one well, can drill four. Companies now know how to drill faster than ever before. They learned it in trial and error. Companies don't need as many rigs to drill as many holes in the ground and that in itself is a cost saving," he said
Warm for 3/4 of December is now expected. Oil to go lower also. Not good for XCO and just about every other oil play. I am stuck in this company and don't like it one bit. And yes NG will probably go much lower with this warm stuff. Major bouts of serious cold at times though. That has been predicted months ago.
It could reach that price mark. Things not going the oil world's way right now and will continue for months to come for sure. Hopefully some type of a merger of minds is forthcoming.
Oil and the alike are experiencing rough times including XCO. That's a fact. And yes we're struggling here but we're stuck in it right now. Hopefully things will play out for us.
Even though the total global industry assets in hedge funds is at $2.82 trillion over 1K of them have liquidated this year due to the downturn in commodity prices. Regulators have dropped the ball on the banks who were a main source of buyers in the commodity world.
I guess that selling included our XCO?
Read the report this morning from a well known oil hedge fund trader who started betting on oil's decline months ago when Nigeria revealed it had no less than 50 super tankers full sitting off shore all dressed up and no place to go. Furthering this decline is China's economic slowdown. As well as the Saudi's decision to keep the pumps going. Where is the current consensus future oil price? $40 is their thinking now. Sounds pretty extreme but the bond market for months now has been telling all that our economic so called recovery is BS. Rates keep dropping just the opposite of what these so called gurus stated at the beginning of this year. Remember the 10 YR T Bond was suppose to hit 3.50%? It's 2.20% today.
They're running close to a 90% capacity rate which is VERY HIGH. Ticket prices are NOT dropping. That's why LUV and others are on fire. Higher prices lower fuel costs. Much to our chagrin here.
All airlines will drop a bit. Some taking profits but mutuals have to report their holdings by the end of November which means MANY loaded up on the LUV's in this world for they're on fire and it makes their portfolios glow.
Lets give our oil shale US partners some help indeed. We in America are producing 1/2 of our oil needs daily now. About 9 MB per day. The other 1/2 coming from Canada and Mexico mostly. It's Japan, India and China importing the stuff in much larger volumes. I say let ISIS and all the rest of those nuts over there invade Saudi's oil fields. Let Iran disrupt everything too and watch Saudi Arabia turn into a wasteland full of nothing but sand.
But are all of these listed energy plays down 45% YTD like XCO? Are they down 65% in the last 2 years like XCO? I doubt it sir.
Who says oil will continue to drop in 2015? Where were the so called experts when oil was at $100 not but a few months ago? We XCO shareholders know all too well the smart monies are way ahead of the rest of us regarding speculation in the financial markets. On that memorable Friday XCO started its descent into the abyss all the way down to $2.12.
The most notable winners are the airlines, which see a significant portion of their costs go to fuel every year. In 2013 alone, U.S. carriers spent about $48.20 billion on fuel, according to the Department of Transportation.
Back out this 30% decline in fuel costs and you're talking about $14B in savings.