*swapping* crude oil with Mexico. Win win. They get the light crude we produce and their refineries are geared for, we get their heavy crude that our refinieries are geared for.
WTI at $40.xx!
Still have money to put in, what’s good?
many companies to go bankrupt before this is over. watch your butts!
FENY / VDE if you like 20% XOM + 10% CVX.
More concentrated but still diversified by line of business: XOM CVX, NOV CBI, CHK, maybe an MLP
Chevron yielding 6.1% this morning. Going to wait as I still want to see low or mid 30s WTI, but getting interested.
So Exxon vs Chevron, what’s the difference yo?
Any of you geo-political types have thoughts on Russia’s actions in Syria and now these rumoured discussions between OPEC and Russia?
I’m far from an expert on this middle east/Russia politics stuff, but was curious to hear others’ thoughts. It may appear Russia is utilizing its military to get a seat at the table to influence OPEC’s current volume-over-price strategy and potentially increase the price of a commodity that is so important to their economy.
Not quite convinced. I think this is security driven. Assad is an asset to Russia, and Islamists spinning out of control not that far from the Caucasus doesn’t sound good.
^I’m inclined to agree this is a fair amount of noise
These small to mid-size, high yield North American oil services companies saw their equities all up 10-25% today on this news. Probably some short-covering here but the price action was fierce. Many of these companies are staring death in the face and their only hope is OPEC changing its strategy in my opinion, so this moved markets a lot today.
Some nice gains over the last few days… picked up some chevron when the market freaked out and dropped 1k points a few weeks ago. So far so good.
Good days boys, good days. My portfolio ain’t looking too shabby now. I’ll probably start selling into this a bit though, I’m skeptical that we will be on a moon shot up from here.
Yeah, the gains are making me nervous ha
Holding for now.
saudi arabia running out of monies
why does Saudi have breakeven price of 106? Seems high given all they have to is dig out of their land…shouldn’t it be similar to that of other countries in the middle east - well below 90? What is the reason for their such high BE price?
i think BE is for balanced budget?
That breakeven includes the taxes and subsidies paid. Their operating cash breakeven to produce a barrel of oil equivalent is very, very low. A lot of the free cash flow produced by that company is used for social spending which is where that high breakeven is coming from.
Saudi Aramco is a tremendous company. Its basically the present day version of Standard Oil in terms of size. It’s huge.
it makes me so angry when people talk about breakeven for ME countries. breakeven is actually like $20. $20 is the level at which the Saudis benefit from producing more oil. because OPEC is broken (e.g. when iran adds production OPEC will be 2.5mmbbls/d above their agreed upon production target), breakevens for budgets don’t matter because collusion doesn’t exist anymore. the game is now produce as much as you can to maximize social benefits (e.g. higher levels of employment, taxation on incomes/sales, profits for state oil companies, etc, etc). those hoping for some grand OPEC agreement to restore higher oil prices are dreamers and need to come back to reality. the market will clear itself over time. you just need to be patient. and please stop talking about stupid numbers like budget breakeven prices for oil. it is pointless. the Saudis could propose doubling their expenditures tomorrow and the new breakeven would be $180/bbl. does this mean this is the new target for oil prices. no. stop being stupid.
If you’ve never known a Saudi IRL, you should go meet one. They swim in money provided to them by the government. I knew a girl who worked at the Saudi Embassy in DC and her job was to basically baby sit all these Saudi’s running wild and get them money when they were broke. That’s why their breakeven for the budget is so high, I don’t think there is much private industry outside of oil and the government paying everyone: http://mic.com/articles/111056/the-new-saudi-king-is-kicking-off-his-reign-with-a-32-billion-gift-to-his-people
For perspective on Saudi Aramco, the national oil company, just going off the data they publicly put out there, Aramco produced more than 5x as much barrels of oil equivalent than ExxonMobil (and their JV interests) in 2014. That’s with spare capacity on the side and at materially lower costs.
Just based off the production data they provide in their facts and figures reports, you can back into the type of EBITDA they generate using rough estimated costs of production and market prices, which is crazy high. Hell, 4.3 billion boe produced in 2014, $15/bbl cash costs to produce vs. $50/bbl boe (most of production is crude oil) is around $150B…per year.Think of the cash thats generated at $100/bbl. They’ve got petrochemicals, downstream and mistream businesses, too, though there isn’t much data on that stuff. Probably the most valuable company in the world.
ohhh okay okay i get it…the break even price the article is talking about is to balance the budge and not the profit margin of digging oil.
They are truly living large.