Bear Down Wildcats

Chicat wrote:Saw $1.81 today.

the real dill wrote:

Chicat wrote:Saw $1.81 today.

WTI dropped under $50, and Brent is just under $53.

Lowest prices since May 2009.

SCCat wrote:

the real dill wrote:

Chicat wrote:Saw $1.81 today.

WTI dropped under $50, and Brent is just under $53.

Lowest prices since May 2009.

It had somewhat looked like things had stabilized at 54/57. I had thought you might not get too much more downward movement until the dollar breakout occurred in earnest during this year...

That was not the case. I will be VERY interesting to see where it stabilizes now.

ASUHATER! wrote:All the rednecks on the main rivals board are pissed off oil is so cheap. Costing thousands of jobs they say.

ASUHATER! wrote:Seems like far too high of a number. That would be one of the largest layoffs in human history. I recall unemployment being really low the last time gas was super cheap. And besides in a year when gas is $4 a gallon again they'll have to rehire all of those people again.

If oil prices keep falling, at some point it's not profitable to pull it out of the ground. But we're not there yet, according to an analysis of production costs by an energy consulting firm.

In fact, even if the Brent price index falls another 20 percent from Friday's closing price—to $40 a barrel—just 1.6 percent of the world's oil supply would represent unprofitable production.

Energy consultant Wood Mackenzie analyzed production data from 2,222 oil fields around the world to see just how much further oil prices would have to fall to make them "cash negative"—costing more to operate than the oil is worth. That price can act like a brake on production, according to Wood Mackenzie analyst Robert Plummer.

"Once the oil price reaches these levels, producers have a sometimes complex decision to continue producing, losing money on every barrel produced, or to halt production, which will reduce supply," he said.

Among the first to shut off the spigots would be U.S onshore production from the trickle of crude emanating from aging, so-called stripper wells. Wood Mackenzie estimates there's about a million barrels per day coming from a collection of older wells that produce only a few barrels a day. The cost of keeping them going varies between $20 and $50 a barrel. So if the price of crude drops below $40 a barrel, some producers may decide to stop pumping.

Below $40 a barrel, the next likely production slowdown would come from Canadian tar sands fields, which start to lose money when the Brent price hits the high $30 range. But turning the flow off and restarting it again is a complex process, involving injecting steam into the ground, which makes it costly to restart, according to Wood Mackenzie. On the other hand, fuel represents a major cost for oil sands production, so lower oil prices could help lower overall production costs.

In the U.K., North Sea oil fields start to lose money below $50 a barrel, according to the analysis. But many of them are older fields reaching the end of their lives, so stopping production could mean slowing down for good. That decommissioning process can be expensive, so some companies may decide to operate at a small loss rather than spend the money to close down operations, the analysts noted.

Production costs also include government taxes and royalties, which could be reduced or suspended if those governments want to keeping production going. Some of the "heavy oil" projects in Latin America, including those in Venezuela and Colombia, become money losers at lower prices, which could spur those governments to offer some kind of royalty relief, the analysts said.

Overall, the analysis found, the impact of $40 oil on global production would be very small, based on data covering some 75 million barrels a day of production. At $50-a-barrel Brent, only 190,000 barrels a day is unprofitable, representing just 0.2 percent of global supply. Seventeen countries supply oil that is cash negative at $50, with the main contributors being the United Kingdom and the United States.

At $45 a barrel, only 400,000 barrels per day, or just 0.4 percent of global supply, are unprofitable. Half of that is from conventional onshore production in the U.S. And at $40 a barrel, just 1.5 million barrels per day represents unprofitable production, or just 1.6 percent of global supply. Most of that production comes from several oil sands projects in Canada.

Even when a field becomes cash negative, it doesn't necessarily prompt producers to shut down right away, said Plummer.

"The first response is usually to store oil produced in the hope that the oil can be sold when the price recovers," he said. "Operators may prefer to continue producing oil at a loss rather than stop production, especially for large projects such as oil sands and mature fields in the North Sea."

scumdevils86 wrote:i paid $30.19 to fill up my car completely yesterday.

Longhorned wrote:

scumdevils86 wrote:i paid $30.19 to fill up my car completely yesterday.

I paid $7.95 to fill up my tank from near-empty in my Honda Fit. After my supermarket "loyalty card" discount, I paid 95 cents a gallon.

the real dill wrote:And we're off.......

Haliburton laid off 1,000 employees last week in the U.S. to go with 1,000 in the Eastern Hemisphere.

Schlumberger announced last night they will lay off 9,000 employees worldwide.

Haliburton has also stated this is just the beginning of tiered reduction in workforce strategy throughout 2015.



HOUSTON – Oil field giant Schlumberger said Thursday it will cut approximately 9,000 employees – around 7.5 percent of its workforce around the globe – as both petroleum prices and oil-company spending nosedive.

HOUSTON -
Halliburton says it has cut jobs in Houston in an announcement made Tuesday.

The multinational company blames the weakening oil market for the layoffs.

Halliburton did not say exactly how many employees it let go. This comes after the company announced it would cut 1,000 jobs across the company.

the real dill wrote:

the real dill wrote:And we're off.......

Haliburton laid off 1,000 employees last week in the U.S. to go with 1,000 in the Eastern Hemisphere.

Schlumberger announced last night they will lay off 9,000 employees worldwide.

Haliburton has also stated this is just the beginning of tiered reduction in workforce strategy throughout 2015.



HOUSTON – Oil field giant Schlumberger said Thursday it will cut approximately 9,000 employees – around 7.5 percent of its workforce around the globe – as both petroleum prices and oil-company spending nosedive.

HOUSTON -
Halliburton says it has cut jobs in Houston in an announcement made Tuesday.

The multinational company blames the weakening oil market for the layoffs.

Halliburton did not say exactly how many employees it let go. This comes after the company announced it would cut 1,000 jobs across the company.

HOUSTON — Baker Hughes said Tuesday it will lay off 7,000 mostly in the first quarter of 2015, amid a crude oil price slump and drilling slowdown it expects to worsen in the next quarter.

The announcement came shortly after the oil service company reported that its net income for the three months ending Dec. 30 rose to a record high of an adjusted $629 million, or an adjusted earnings per share of $1.44 in 2014.

gumby wrote:Who was the guy who did all of the oil-exploration posts? Last I heard, he went off to Colorado. Anyway, should have more time to post now.

azlax04 wrote:I work on the Sand Crawler:



In a polar wasteland:



Really glad it looks like I'm going to be able to stream games up here, assuming I'm not on shift.

scumdevils86 wrote:

the real dill wrote:

the real dill wrote:And we're off.......

Haliburton laid off 1,000 employees last week in the U.S. to go with 1,000 in the Eastern Hemisphere.

Schlumberger announced last night they will lay off 9,000 employees worldwide.

Haliburton has also stated this is just the beginning of tiered reduction in workforce strategy throughout 2015.



HOUSTON – Oil field giant Schlumberger said Thursday it will cut approximately 9,000 employees – around 7.5 percent of its workforce around the globe – as both petroleum prices and oil-company spending nosedive.

HOUSTON -
Halliburton says it has cut jobs in Houston in an announcement made Tuesday.

The multinational company blames the weakening oil market for the layoffs.

Halliburton did not say exactly how many employees it let go. This comes after the company announced it would cut 1,000 jobs across the company.

HOUSTON — Baker Hughes said Tuesday it will lay off 7,000 mostly in the first quarter of 2015, amid a crude oil price slump and drilling slowdown it expects to worsen in the next quarter.

The announcement came shortly after the oil service company reported that its net income for the three months ending Dec. 30 rose to a record high of an adjusted $629 million, or an adjusted earnings per share of $1.44 in 2014.

hah.

the real dill wrote:

scumdevils86 wrote:

the real dill wrote:

the real dill wrote:And we're off.......

Haliburton laid off 1,000 employees last week in the U.S. to go with 1,000 in the Eastern Hemisphere.

Schlumberger announced last night they will lay off 9,000 employees worldwide.

Haliburton has also stated this is just the beginning of tiered reduction in workforce strategy throughout 2015.



HOUSTON – Oil field giant Schlumberger said Thursday it will cut approximately 9,000 employees – around 7.5 percent of its workforce around the globe – as both petroleum prices and oil-company spending nosedive.

HOUSTON -
Halliburton says it has cut jobs in Houston in an announcement made Tuesday.

The multinational company blames the weakening oil market for the layoffs.

Halliburton did not say exactly how many employees it let go. This comes after the company announced it would cut 1,000 jobs across the company.

HOUSTON — Baker Hughes said Tuesday it will lay off 7,000 mostly in the first quarter of 2015, amid a crude oil price slump and drilling slowdown it expects to worsen in the next quarter.

The announcement came shortly after the oil service company reported that its net income for the three months ending Dec. 30 rose to a record high of an adjusted $629 million, or an adjusted earnings per share of $1.44 in 2014.

hah.

tough pill to swallow for those losing their jobs no doubt. You have a record breaking quarter, you reduce HC to fall in line with plunging oil prices and your stock is still down 1.5% today. Lots of oil services companies will have record breaking 2014s followed by record breaking layoffs in 2015

scumdevils86 wrote:he was. he just went poof 3 years ago now. never even logged into his account again.

Longhorned wrote:

scumdevils86 wrote:he was. he just went poof 3 years ago now. never even logged into his account again.

He was named Commissioner of Nap League and never even knew about it because he vanished and never returned.

Merkin wrote:Went up 18c in 2 days where I live. Spins the magic 8 ball and big oil says:

1. some refinery strike
2. February is historically has the lowest gas prices, and prices generally go up now

Merkin wrote:10 cents a gallon new Cali carbon tax 1/1/15 + nationwide Teamsters refinery strike + Torrance refinery fire last week has made much of the gas in my area already at $3 or so. Was able to pay $2.77 Saturday but that won't last long.