Even with the ability to make money at lower prices , I think the peoblem is deeper, rather a deep deflationary spiral beginning in the commodity itself. So good for the consumer. While deflationary, the benefits as I look more closely at this will more strongly outweigh such detractors as you cited earlier from everything as the obvious like transportation to even manufacturing . I see nothing but good for the the retail segment as well. This rruly is a giant tax break. The stock winners going forward in 2015 ? Probably see a stabilization in oil stocks but not much appreciation , but transports and reits and retail will probably do quite well.
Thus the reason their 250 miles on a gallon of fuel per ton was once a good selling point. At lower prices truckers increased competitiveness kicks in. You are seeing that now.
I have not seen any documents pointing to what their production costs per barrel are. Sources?
People here already own eog so saying don't be a hero , well it is already too late as they already own it. Haha
word of the day DEFLATIONARY.. Is that so bad? I suppose it is because they tell me so ? I certainly still have trouble understanding the dynamics of the word . Oversupply not just in oil.. Look at Italy and its unemployed.. Again deflation? Yet Consumers are still getting ABUSED with high prices in things like groceries.
it is in our interest to have low oil. Like I said. Remove the profitable shale plays and you kill the goose that lays the golden egg. It is in our interest to become and remain energy independent.
Some players are already doa although their stocks are still trading. Some of the more efficient players not so much as they can be profitable at lower prices.Keep in mind that these are why oil is now plummeting at yet because of their capabilities, they inadvertently are paying the price. If America and the consumers of the world want to continue enjoying low oil prices, then shale players creating such lows in oil must , in the end survive. Kill the cow for the meat but in return you no longer have any milk?
eog down hard. You sold xom puts? looks like you think a bottom may be in the future for some of these oil stocks? This lower oil price is nothing but good news , unless you are long oil stocks. What will stem the bleeding? If OPEC does not budge how much lower we go ? Is the price of oil in any way related to QE? Strange under the scenario of still low interest rates oil should be at very high levels . Looks like any further strengthening in the dollar or if interest rates rise , oil will go much lower. For those other than the holders of oil stocks who might say the drop in oil is a bad thing, I think they are wrong, but the ramifications and what exactly they will be and their extent aren't fully known. If the new drillers in the Bakken go out of business, what then? If oil prices are low because of demand alone , that says something else as well..
Why do you think prices got this low ? It is only because of the enhanced production powerhouses in the new shale regions that this is so................................................................................................................. Drillers here like EOG said they will continue business as usual. They are being punished but it is because of them that prices are low. These companies, at least some of them can remain profitable at lower prices. OPEC is playing a game of chicken. If you destroy the new drillers ability to make money by driving prices too low these companies will be sacrificial lambs, once dead will result in higher prices once again.
Perhaps and you can thank EOG for the low prices. It is ONLY because of these new high efficiency US drilling powerhouses that OPEC is squirming and prices are low. What happens if the likes of EOG stops? What happens to your oil price?
Not me Riv. However from the sounds of things BHI should do well in the equipment area. Price still quite low.
International standing? Not sure if you are being facetious. Unfortunately most of the new job creation is part time, is it not? And how and why at this point in the cycle after the bailouts in the last recession would he be responsible for more job creation? The war is a mistake. First by Bush and now Obama , who ran on the original premise of ending such has decided to add even more troops to the unresolvable debacle.
Oil is having its day in the sun as it crests the hill and enters the twilight of it history. I do believe solar power will outlive oils reign . Certainly if the big yellow ball in the sky teaches us anything. Oil is filthy in every respect. Global warming is real . You know some humans laughed at the airplane and the car too. Let me ask you something. In 20 years what do you think our energy source will be ? How about 50 or 100? A short time in terms of our existence on the planet, wouldn't you say? Just goes to show how short sighted and stubborn people can be. Now take solar power and its diversity . That is something that can be sustainable and clean forever. Gradually over time it will become more efficient. Probably not a bad time to invest in solar too as oil is temporarily down in price. There will be an Apple of solar . Here is another tidbit. You know what the first oil related appliance to die off will be? The automobile. So it won't be oil directly that meets its demise but its offspring. The rest will fall into place.
The global warming deniers can't escape the fact that hydrocarbon fuel sources pollute the air and water as well as destroy wildlife habitat. That alone should be enough to promote renewable energy , specifically solar power.
Probably the best thing is to have a house that is paid for and a place for a garden, Probably some solar panels off the grid and transportation that would be a gas sipper or electric, providing that the grid is still standing. . Cash will never be worthless but Germany suffered a fate close to that many years ago. Still, investing in companies that grow earnings faster than a questionable currency deteriorates is probably not a bad idea either.