$60 might bring a bunch of shale back online, but it isn't going to be with unlimited budgets like it was before. Every project will need to prove it can make money to get funding. Going forward growth will be a lot more controlled.
I got a pretty decent sized interest payment on my LGCY bonds and I'm wondering if I should use that to buy more ARP bonds. Hmm...quite a question
Show us your own analysis or you've got no right to talk about someone else's numbers. Where's your math?
Just because he's gone there doesn't mean he's gone here. Or am I missing something? In fact this may actually give him incentive to help RSO for a change instead of sucking all the profits to REXI for a bigger score.
I think much of RSO's problems of the last few years has been the drive to expand at all costs because it gives the managers (REXI) a bigger bonus.
$50 oil crush the economy? A couple years ago if someone had said what would $50 do for the consumer, they would have gone nuts about how beneficial that would be. Current prices are only "high" relative to a very short dip in prices. Is your memory that short that you only remember $30 oil?
The failure of the meeting to me wasn't as big a deal as SA saying they could raise production by 1 million bpd. What if they actually do that just to hurt Iran and Russia? that would push rebalance out another year maybe.
In the US, the frac log will eventually run out. at current prices, most of it won't be replaced. At 60 companies will want to ramp up, but their labor will have moved on to other jobs. the longer the downturn stays, the longer it will take to hire and train people when they are needed again.
Are the BBEP Bonds even worth anything in BK now? I have to wonder if it would be worth it to buy some at 6 cents on the dollar and see how the deal falls.
I think they will go as crazy as they are allowed to. The cost savings are massive. Sure beats drilling!
As long as they pay the bonds I'm good :)
The roller coaster may not be over yet, but if they can get through 2017 decline should have done enough damage that investment will be needed once more.
Russia can't afford to keep up production capex, so they're prod is going to drop anyway. Why not make a big show of agreeing with the others.