Agree this is silly. LIne is hedged on oil at least 50% to 60% next year. The California properties are low operating cost and low capital intensity. So these assets are not shales which become uneconomic at say $70bbl.
So management did the right thing to trade shales for low decline mature assets already well served by infrastructure.
American natural gas is actually slightly up to firm.
At least 71 projects worldwide use CO2 flooding and produce a total of over 170 000 barrels of oil a day, worth around $1.3 billion a year. The cost of producing an extra barrel of oil ranges from $5 to $8 and thus is profitable at the present price of nearly $20 a barrel. In the majority of these cases, the carbon dioxide comes from natural underground sources and is piped to the oil field. The potential use of CO2 flooding would be considerably greater, if large quantities of the gas, extracted from power stations, were available at low cost. For every kilogramme of CO2 injected, approximately one to one quarter of a kilogramme of extra oil will be recovered. For most projects about as much carbon dioxide is disposed of in the reservoir as is generated when the oil is burnt. When CO2 is at a sufficiently high pressure to form mixtures with the crude oil that are miscible in laboratory tests, up to 40% of the oil remaining in the field after water flooding can be recovered. Approximately half the water flooded oil fields in the US could be exploited profitably by CO2 injection. Carbon dioxide flooding of the larger North Sea fields is a particularly attractive prospect, because the crude oil is light (composed of low molecular weight hydrocarbons) and the geology of the reservoirs is less heterogeneous than the American fields. A profitable project would be possible if the gas could be provided and piped to the reservoir at a cost of around $3.50 per thousand cubic feet or less.
Now that KMP his the co2 pipe running the cost has come way down. Always depends on the field but it is very unlikely American EOR will stop.
Like Natural Gas, dirrenet oil basins have wildly different costs to produce. Some deep Bakken run around $80 barrel. But the Permian can run $40 with excellent infrasture available. Perhaps there is a ray of sunshine with all the uncertainly Obama has imposed by dissembling. The E in EP has come to mean efficiency.
Tight oil with all that gas xxx
Actually Stag the insane corn monster. MSFT ring a bell? How about NRF? How about CSX? NSC.
Which are things you made fun of as they did not offer double digit yields.
Actually of Stag the willfully ignorant corn monster. Plenty of light sweet shale oil. In fact a surfeit of light sweet shale oil. The export refiners would rather have heavy as they can move the crack towards export diesel.
So what you have provide is another reason the insane and evil at this scale completely defective corn ethanol mandates must be stopped. By the conditions of the RFS law itself.
Yes Stag, how is that double volatility BDC monster doing this week? How about sea drill? really to much.
Anyways, Willie was off getting the math wrong on deep in the money calls for LINE. Which is why Ron^3 is thankfully quit recently. But Willie has no shame in its willful ignorance.
As for me, I always recommend buying out of the money calls. After real investors with partnership tax tails can not be bunching up all the recapture and driving the margin tax rate.
I really do feel sorry for you. All these years now and you are still the extremely ignorant and delusional character.
Maybe you can explain soybeans and get it wrong again? ;) Oh goodness.
ON the plus side this is really turning into another complete irrational panic. Opportunity.
Canada 102k or about 40%
Venezuela at 28k could literally go into revolution at any moment. OIl at $80 and a currency already crashed.
But Saudi officials have given a different message in meetings with investors and analysts: the kingdom, OPEC’s largest producer, will accept oil prices below $90 per barrel, and perhaps down to $80, for as long as a year or two, according to people who have been briefed on the recent conversations.
The discussions, some in New York over the past week, offer the clearest sign yet that the kingdom is setting aside its longstanding de facto aim of holding prices at around $100 a barrel for Brent crude LCOc1 in favor of retaining market share in years to come.
So the Saudi's are giving Europe a break for helping out with ISIS. They are also lining up discounted supply to displace PutinLand. Racking the Iranian economy. Shutting down the northern oil fields in Iraq. Smacking the African OPEC members who have been hard hit by the American fuel exports to Latin America. So are discounting into the grey market.
As far as American capital investment drag. There really has not been any increase in total working rigs for some years. True rigs are brought in and reconfigured from ngas to oil. So the economic drag would come from operating.
Barrons is cute, but the direct increase in consumer incomes from lower gas price is much larger than the operating component.
Trading seems to be getting silly again.
Keeping in mind there is a huge amount of slop in the EIA figures. Good for directional
Total imports crude oil and products 294k
You know Opie I am sure Obama's all negative emotional politics based on perception rather than reality team knows full well what $10 oil did for Clinton.
Problem is the Great Goolsbee of Chicago actually used some standard economic theory. What remains are hard core collectivists. If the can get the Sunni Arabs to take oil down to the $70s and slow American oil production it will probably emotional charge the Progressive worshippers of their humanity hating earth goddess.
Remember Mr. Hamm made a special trip to talk with Obama. To provide him with very real information that American oil and natural gas energy independence was a reality. To which Obama replied Noble Chu says we will not need oil in five years.
The progressive hubris is far more dangerous than simple ignorance. A progressive will never admit a mistake. Never.
IMpose completely defective corn ethanol mandates for Obama's political corruption Opie,
After Obama screwed them in 2013, they stop their intelligence operations with our CIA. The leaks and Obama selling them down the river so Iran can have nukes.
As you see Obama's weak and dishonourable is the worst 'realpolitik'.
Well Willie not my portfolio. But yes the Kinder Morgan equity zoo I bought is. Mentioned on the board to as you full well know.
Actually moving out of small and midcaps and buying ADX when the discount is at least 14.5%
If the Sunni Arabs do engineer oil down into the $70s. The PEO discounts is likely to widen on bouts of emotional pr Progressive inefficiency.
Gas rigs are down year-to-date
Natural gas rigs decreased for most of 2014. At the beginning of the year, natural gas rigs totaled 372. Currently, there are 330 rigs. This represents a decrease of 42 rigs, or ~11%. In the corresponding period of 2013, weekly natural gas rig counts dropped by 61, or ~16%.
In 2014, most of the decline in natural gas rigs came from the Eagle Ford at -17, the Cana Woodford at -15, and the Mississippian at -5. Year-to-date (or YTD), the Granite Wash added the most rigs, +17, to its natural gas rig total.
The YTD drop in natural gas rigs continues the downward trend that started in late 2011. Natural gas rigs topped 930 in October 2011.
Of course uncertainty is enough to pull back rig counts. Tight oil needs than ng pressure to get the oil out.
Now Obama had the Sunni Arab OPEC members make a fool of him. Is there any one left in the world who have not had their turn?
Yea Willie that little thing about market looking forward and assigning probability values to outcomes.
Just the most basic market function. Nothing for you to worry your limited processing capacity with. ;)
Pretty amusing out of Progressive Salon
As it happens, though, the Obama administration is also wielding the oil weapon against two of the world’s leading producers, Iran and Russia. These efforts, which include embargoes and trade sanctions, are likely to have a far greater impact on world output, reflecting White House confidence that, in the pursuit of U.S. strategic interests, anything goes.
It is not the Arab Sunni states pulling out the oil weapon to fill the vacuum of Obama lead from behind.
No! It is actually to cool for school Obama doing it all.
Except WTI at $83 will begin taking rigs off the deeper tight oil. Especially with the Sunni Arab oil states throwing out $70 to $77 for affect.
The nice thing about the California EOR fields is the tipping cost is low and getting better. The oil is priced between WTI and Brent. Hopefully management already extended the oil hedging.
You just have to love Progressive Salon. Half the record low economic growth from Obama's last place finish has been from the oil domestic boom. Kuwait's oil minister is most likely correct that $70 to $77 will shut in the deep tight oil. What a great strategy if you are a Progressive who hates American oil production. Nothing could be better.
What a perfect time to follow the renewable Fuel standard and eliminate the mandate for insane corn ethanol. Winter blend is the perfect time too.
It is a very big call coming up folks.
Willie you can live in your little imaginary world. But I guess it is fortunate your portfolio is imaginary too.
OPEC Members’ Rift Deepens Amid Falling Oil Prices
Rival Producers Moving in Sharply Different Directions
By BENOÎT FAUCON, SUMMER SAID and SARAH KENT
But on Sunday, Ali al-Omair, Kuwait’s oil minister, said there had been no invitation for such a meeting, suggesting the group would need to stomach lower prices. He said there was a natural floor to how low prices could fallat about $76 to $77 per barrel—near what he said was the average production costs per barrel in Russia and the U.S.
This month, state-owned Saudi Aramco stunned the rest of OPEC by slashing its November prices to defend its share of Asia’s growing market. Saudi Arabia also said it increased its output in September."
WTI futures are flat around $83.50
Brent is slightly contango from $88 to $94.
But the Sunni Arab members of OPEC are increasing their shipments as they discounting. Pushing extended contacts in Europe while making noise about Asia.
Timed with the refining maintenance schedule in American as well. Plus the socialists who win elections in Venezuela then tear down democracy and destroy the oil industry on corruption are screaming for na emergency meeting of OPEC. But the Sunni Arab state do not hear them and see no reason to hear them.
All that is missing is additional ng supplies for the European winter. Priced to OPEC oil of course.
It really is looking like the Arab Sunni oil states have decided to fill the Obama made American void in geopolitics. This is some hard ball on Russia and Iran.
Crude oil inventories increased by 5.0 million barrels to a total of 361.7 million barrels. At 361.7 million barrels, inventories are 8.9 million barrels below last year (2.4%) and are in the upper half of the average range for this time of year.
Gasoline inventories increased by 1.2 million barrels to 209.7 m
On the same day, another senior Saudi royal, Prince Turki al-Faisal - the former intelligence chief and ex-ambassador to the US and UK - gave a speech in Washington damning President Barack Obama's policies on Syria as "lamentable".
He dismissed the US-Russian deal to dispose of Syria's chemical weapons stockpile as a trick to excuse Mr Obama from having to order military action there."
NO OPie I realize all this is far beyond Willies ability or willingness to understand.
After the wild security breaches under Obama; the traitor camping out with Putin, the cooperation CIA and SA security was tenuous.
23 October 2013 Last updated at 12:14 ET
Largely in protest over Washington's reluctance to get involved militarily in Syria, the prince reportedly said Saudi Arabia would be scaling back its co-operation with the CIA over arming and training Syria's Sunni rebels.
Did Obama call ISIS jayvee because of his remarkably childish judgement or did this insult to SA cost our eyes on ISIS?
Then on Tuesday it was widely reported that the Saudi intelligence chief, Prince Bandar bin Sultan, had told European diplomats his country would be making "a major shift" in its relations with the US.
Largely in protest over Washington's reluctance to get involved militarily in Syria, the prince reportedly said Saudi Arabia would be scaling back its co-operation with the CIA over arming and training Syria's Sunni rebels. BBC"
There were more public statements as well.
Willie you really have left the planet again.
You did read all the arab members of OPEC are content with lower oil prices? :)
You know the weird thing is you claiming to invest your own money in this condition of absolute delusion.
By SUMMER SAID And BENOIT FAUCON
“I don’t think there is a chance today that [OPEC] countries would reduce their production, especially since the target that OPEC has given itself, which is 30 million barrels a day, has not been reached until now,” Ali al-Omair was quoted as saying by official Kuwait News Agency, or KUNA.
He added that he believes that oil prices won’t fall below $76 to $77 a barrel—the production cost in Russia and the U.S."
BUt of course averages kill. Also the gains in American drilling efficiency is not stopping. Different shales have different costs. The new carbon sweeping old fields is very low cost.
SINGAPORE/TOKYO, March 31 (Reuters) - Iran's top four crude oil buyers lifted their purchases 17.2 percent in February from a year ago, as the OPEC member continues to ship more oil than allowed under a deal that eases some of the sanctions aimed at its disputed nuclear programme.
Under the interim agreement reached in November between Iran and six major powers and that took effect in January, the Islamic nation is supposed to hold its exports at an average of 1 million barrels per day (bpd) for the six months to July 20.
But imports by its four biggest buyers, China, India, Japan and South Korea, as well as Turkey, have totalled more than that since at least November, and tanker tracking data indicates only a slight slowdown in Tehran's exports in March.
"Maybe the prices are too good to be refused. The Iranians have been known to offer pretty good deals," said Victor Shum, vice-president of energy consultancy IHS Energy Insight.'
Another reason the House of Saud renounced their relationship with Obama in public.
Africa is a continent. I know how you really do believe clinking your heals three times allows you to be in many places at the same instant.
Just like Obama is enforcing immigration laws must be part of you clinking your heals magic. ;)
It is estimated that the current population of African immigrants to the United States is about 881,300. Countries with the most immigrants to the U.S. are Nigeria, Egypt, Ethiopia, Ghana, South Africa, Somalia, Eritrea, and Kenya. Seventy five percent (75%) of the African immigrants to the USA come from 12 of the 55 countries, namely Nigeria, Egypt, Ghana, Ethiopia, South Africa, Kenya, Liberia, Somalia, Morocco, Cape Verde, Sierra Leone and Sudan, which is based on the 2000 census data.
Immigrants from Africa typically settle in heavily urban areas upon arrival into the U.S. Areas such as Washington, D.C., New York, Houston, Columbus, Ohio, Atlanta and Minneapolis have heavy concentrations of African immigrant populations. Often there are clusters of nationalities within these cities. The longer African immigrants live in the United States, the more likely they are to live in suburban areas.
Duncan came to the United States to visit family and friends, departing Liberia on September 19, according to the CDC. Liberian authorities said he was screened for Ebola before flying.
Now hopeless Opie,
The Obama bureaucracy put our colour rich communities in harms way of unrestricted travel from Africa.
So JJ's nonsense of negative noetics to cover top level bureaucratic failure leaving our communities completely exposed. If our emergency rooms in colour rich communities are inadequate it is another critical reason there should be more restrictive travel controls.