RIG paid .75 last March...more than the .15 divy per quarter for the year......it was a reasonable decision....give RIG management credit.....they cannot control market conditions.
The Divy move secures RIG future really.....and Rig has already paid .75 cents at the March Quarter.....more than a years divy at .15 per quarter.....
And the 40 dollar oil price is Inflation Adjusted! (otherwise it would be about 26 dollars.)
It makes sense to pause.......Next Year they will likely pay the .15 Dividend 4 times.
So actually the .15 and .15 cent dividend has been more than paid already.
Pause gives the impression that it will be reinstated after two quarters.....also remember that RIG generously paid .75 earlier this year.
I understand this....RIG is an excellent company that has NO control over the price of OIL.....and they amazed and surprised "experts" like you by the results last quarter.....and I am sure that "expert" like you will be surprised again.
Maybe RIG management knows more than you Gasman....the last earnings report indicated that you were WRONG before.
The world needs to find and produce/replace at least 4-5 million barrel per day production capacity PER YEAR because of natural field depletion and increased demand. Shale/Fracking cannot come close to doing that. Offshore is the only remaining OIL source as onshore has been developed already.
NEW YORK, Aug 20 (Reuters) - BP Plc's Whiting, Indiana, refinery, whose partial closure nearly two weeks ago has roiled global oil markets, may restart a key crude oil unit weeks earlier than expected, according to sources and a published report.
Not based on fundamentals......just emotion and superstition. ..then the rebound will occur
it is true that the events in oil defy logic.....I was surprised to see SDRL drop so much....Morningstar calls for a fair value of 16 dollars for SDRL.
The OIL BULL MARKET TABLE IS BEING SET NOW....like a summer storm prepares for new growth.
He is a Commodity expert....He has been a strong Bear calling for a OIL washout......note the ENSCO is up 3.5 % with the DOW down 300 points and OIL down 2%....this could be the turn point for oil.....a slow multiyear recovery ahead
I reviewed Weekly Petroleum Data REPORTS from several years ago and compared the data to the most recent REPORT.......OIL Demand is currently much higher. Refinery utilization is sharply higher. Gasoline production and consumption are currently higher, Overall the most recent report was not bad. And experts say that replacing OIL lost from natural ongoing field decline will not be possible/easy at the current oil Price Per Barrel.
with the 2.6 Million inventory build....traders are looking for any excuse to drive down the price of OIL or ANY Commodity.........to make money
In most fields, oil production has now peaked, which means that other sources of supply have to be found to meet existing demand.
Even if demand remained steady, the world would have to find the equivalent of four Saudi Arabias to maintain production, and six Saudi Arabias if it is to keep up with the expected increase in demand between now and 2030, Dr Birol said.
"It's a big challenge in terms of the geology, in terms of the investment and in terms of the geopolitics. So this is a big risk and it's mainly because of the rates of the declining oil fields," he said.
"Many governments now are more and more aware that at least the day of cheap and easy oil is over... [however] I'm not very optimistic about governments being aware of the difficulties we may face in the oil supply," he said.
Environmentalists fear that as supplies of conventional oil run out, governments will be forced to exploit even dirtier alternatives, such as the massive reserves of tar sands in Alberta, Canada, which would be immensely damaging to the environment because of the amount of energy needed to recover a barrel of tar-sand oil compared to the energy needed to collect the same amount of crude oil.
"Just because oil is running out faster than we have collectively assumed, does not mean the pressure is off on climate change," said Jeremy Leggett, a former oil-industry consultant and now a green entrepreneur with Solar Century.
"Shell and others want to turn to tar, and extract oil from coal. But these are very carbon-intensive processes, and will deepen the climate problem," Dr Leggett said.