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SHORTS ALERT! SDRL UP 3.5% IN PRE MARKET: Thinging you're gonna buy SDRL at $7.00 is an idiotoic day dream... ha ha ha what a joke!
RDC had a good quarter, maybe its a sign that things are as bad as the shorts wants us to believe. This should boost SDRL nicely.
anyone that believes the oil market is not manipulated in a blind fool.
sure, I'm great... just a little crazy. I post a lot of messages just so I can go back in six months and see how I was thinking. Everything I write is how I feel on the inside. I really believe my own sh_t, which might be my problem. I made a lot of money on the crash in 1999. I missed the crash on 2008. I really believe this crash will be extremely profitable as long as I keep looking for answers as to why crude moves.
Here's a thought for you: I am beginning to believe that a few Iran wealthy are short crude. They know they can not pump ~500,000 extra barrels for at least a year. But if they can scare investors into selling crude by threatening to pump like crazy, they can control crude prices to their advantage.
Bloomberg's is happy to repeat what they say a thousand times on TV. If you can talk crude up and down $10, you can make billions on top of billions. If you are greedy and can play a major part, then this is exactly what you will do.
crude prices have been the choice of munipulators for a hundred years. don't doubt it.
I watched yesterday as 2 Bloomberg TV announcers badmouthed crude oil. They were positioned in front of a bright red background and both of the SOBs were wearing red ties. If this isn't blatant market manipulation I will eat all the bull sh_t in Texas. There's a lesson here. When the big boys pick on a sector, you better run. I dumped a large chunk of SDRL at $8.66 and bought it back at $8.15. I moved out of RIG into PTEN and held NOV.
The volume was high on a drop in price, which is an indication that buyers were in the oil patch looking for a bargain. I don't see SDRL dropping below $7.50 even if the Bloomberg Gang runs crude to $43.
I really don't care how long I wait because I believe stocks in the oil patch will triple in a few years. A triple in the oil patch is better than 0.2% return on a CD.
By the way, I still think most of my oil patch market analysis is right on. I just underestimated the ability of Bloomberg TV to manipulate the market. These guys are worldwide and running 24 hours a day. When they set their minds to destroy a sector, they don't quit until the job is done. One day someone beside me will see what's going on. Maybe the thing to do is go with the Bloomberg flow? I bet that what's the smart money does. Only the small investors that rely on fundamentals get stung.
By the way, I've noticed all my life that I've been right 90% of the time. The only problem is that my timing has been way off the mark. I'd be damned good if I could get the timing in line with the predictions. If things go according to my past record, offshore drillers will triple but I'll have to wait 5 or 6 years. Still, a 150% return over 6 years is 25% per year. Humm... maybe I should just put my cash on the table, turn the Bloomberg channel off, and go sailing around the world.
At 8:28 PM market manipulation by Bloomberg's TV suddenly reversed itself. They put on a smart trader from Chicago that said "NOW IS THE TIME TO STEP IN AND BUY WTI." He said it might drift down a little more, but he thinks there will be a fast move back to at least $50 and maybe more.
This might be a buying signal. WTI seemed to bottom at 45.99 and start up again. But usually the big move will come after the market is open.
I holding a truckload of NOV, SDRL, and RIG. All three, including WTI, have been beaten up and way oversold. I can't hold much longer -- I have no dry powder.
At 8:28 PM market manipulation by Bloomberg's TV suddenly reversed itself. They put on a smart trader from Chicago that said "NOW IS THE TIME TO STEP IN AND BUY WTI." He said it might drift down a little more, but he thinks there will be a fast move back to at least $50 and maybe more.
This might be a buying signal. WTI seemed to bottom at 45.99 and start up again. But usually the big move will come after the market is open.
I holding a truckload of NOV, SDRL, and RIG. All three, including WTI, have been beaten up and way oversold. I can't hold much longer -- I have no dry powder.
Did the chicken come before the egg, or is it the other way around? Crude suffers because Exxon had a bad quarter; Exon had a bad quarter because crude prices are suffering. Humm... sounds like a circle jerk by the manipulators.
The truth is that crude is down because OPEC and Russia keep on pumping like crazy to hurt the US shale producers who keep on pumping like crazy because they hedged oil last year at $90 per barrel. This hedge comes off this week
So... how smart was it for OPEC and Russia to try to put shale producers out of business when most had a built-in guarantee of $90 a barrel?
How smart is it gonna be for OPEC and Russia to keep pumping like mad and cause the US Senate and the House to reverse the stupid law that says the US cannot export crude? Talking about screwing up your market share, I think the US can kick both the Saudis and Russia butts in oil production if we open the East Coast offshore and certain parts of Alaska.
So when do the Saudis and the Ruskies recover their sanity?
I think the Saudi King already knows the foolish mistake of his oil minister. The King's son has been second in command for 6 months. I think the King will fire the stupid oil minister and put his son, the Crown Prince, in charge of oil production and give him the experience he needs to take over as King when the father dies!
Any bets?
TIDBITS OF OIL NEWS:
Oil and gas-producing Middle Eastern countries have often secured downstream assets – such as refineries, oil storage, and liquefied natural gas import terminals – to smooth the path to market of their hydrocarbon exports. But, with a few limited exceptions, they have not invested in international upstream (the exploration and production of oil and gas). (If you want to produce--you got to drill baby drill! No drilling and production drops like a stone.)
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Low oil prices have impacted job growth in the UAE in the second quarter, but the number of new hires could increase in the second half, depending on how oil prices fare, a UAE employment report said.
“The oil price went back up to $60 per barrel toward the end of the quarter, but it needs to go up by a further $5-$10 a barrel to make new drilling and exploration projects viable,” said Trefor Murphy, managing director for the Middle East and North Africa at Morgan McKinley, in the report.
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Iran wants to reclaim market share for other OPEC members. The showdown between Iran and Saudi Arabia within Opec will happen, however, as many analysts reckon Iran's output forecast is too optimistic. Wood Mackenzie, for example, expects that Iran could be pumping an additional 400,000 bpd by this time in 2017, with another 200,000 bpd coming on in 2017.
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MOSCOW, July 31 (UPI) -- OPEC said in a joint statement with Russia that price volatility and oversupply was damaging the market for crude oil.
Russian Energy Minister Alexander Novak hosted OPEC Secretary-General Abdullah al-Badri to discuss short-term market trends and long-term prospects in the crude oil market. (They want to make a deal to cut production and raise prices!)
"It was stressed during the meeting that price volatility and the general oversupply in the oil market observed in recent quarters have been less conducive for market stability," both parties said in a joint statement.
OPEC in its last string of regular meetings opted to keep production levels static despite price swings in order to protect their market share. OPEC's secretary-general in April described the market situation as "intermittent." (OPEC has already stated that it is ready to cut if Russia Will cut!)
Russia's currency, the ruble, plummeted in value early in 2015 as the low price of crude oil put pressure on an economy targeted by Western sanctions imposed in response to the Kremlin's position on crises in Ukraine. (Russia and OPEC will make a deal!)
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OPEC's secretary-general said on Thursday the group expects increasing oil demand to prevent a further fall in prices and sees a more balanced market in 2016. OPEC is coming to terms with the fact that lower prices are not protecting their market share even one barrel. They lost market share and billions of dollars at the same time. OPEC simply needs to make a deal with Russia to reduce production a total of 5 million bpd (3.5 mbd for OPEC and 1.5 mbd for Russia) and let crude come back to the $60 range. There is simply no benefit for OPEC or Russia to commit suicide and hold prices below $50. They could reduce production a little and let the price increase back to $60 and then wait until demand increase before they increase production. They are making fools out of themselves and wasting billions. This is all about stupid pride! They will wake up SOON.
Furthermore, The US Senate Energy Committee approved a bill to lift a 40-year-old ban on crude oil exports. But it needs to be passed by the full Senate. If OPEC and Russia continue with their stupid pride, the Senate, and the House will pass the oil export bill and the US will become a major crude exporter. There are few more archaic laws we need to change, which will get done if OPEC continues to try to destroy shale production. OPEC has lost the battle. I think the new King of Saudi Arabia knows it and will act soon to correct the problem. The entire world is getting more and more peeved with the irresponsible acts OPEC, a 300 lb gorilla who has been losing weight like crazy.
girlfriend, what I don't see is the reason for the drop in price other than manipulation. It does not take investors long to realize that the shares they sold cheap are quickly going to someone else. The manipulators have pulled the same tricks for many months now. Their old tricks are not gonna keep working. Investors will start buying and holding on for dear life. Once the manipulators realize the same old moves don't work anymore, SDRL will not come under attack so many times. SDRL is also a day-traders dreams, this adds to the volatility. I'm now working on a program that will pick up movement due to day-trading.If it works, you'll know when day traders are mostly long or short. This will give you an edge on when to buy and sell.
The point being that WTI and Brent are both oversold due to the wrong reasons. The truth is that we should be on guard for a rapid reversal and super positive news that could catch the shorts with their pants down.
When shale production drops, inventory drops and comes in line with demand. Prices will rise on anticipation of lower production.
Obama's will be known as out dumbest president. He has screwed up the deal with Iran--they ate him apart.
I agree, SDRL is way oversold and will return to $12 very quickly.
THE STUPID REASON CRUDE DROPPED ON FRIDAY:
The experts say that crude prices fell after Baker Hughes (BHI) announced that U.S. energy companies added five oil rigs this week, according to Reuters. The increase comes after oil companies put 21 additional rigs into use last week.
Use your head for something other than a hat rack. Drilling day rates are cheaper now than at any times in the last 5 years. If you have any money, now is the time to take advantage of the rig bargains. Now is the time to drill all the wells you can afford, cap them, and wait till oil prices increase. On the other hand, wait till the drilling boom returns and you might have to wait 6 months for a rig of your choice. Plus, you pay double!
What's wrong with drilling when the choice rigs are available and the rates are dirt cheap? This ain't no reason for crude to crash!
Will investors realize that the sell-off was for a stupid reason? I think so... I see both crude and RIG popping up strong on Monday!
THE STUPID REASON CRUDE DROPPED ON FRIDAY:
The experts say that crude prices fell after Baker Hughes (BHI) announced that U.S. energy companies added five oil rigs this week, according to Reuters. The increase comes after oil companies put 21 additional rigs into use last week.
Use your head for something other than a hat rack. Drilling day rates are cheaper now than at any times in the last 5 years. If you have any money, now is the time to take advantage of the rig bargains. Now is the time to drill all the wells you can afford, cap them, and wait till oil prices increase. On the other hand, wait till the drilling boom returns and you might have to wait 6 months for a rig of your choice. Plus, you pay double!
What's wrong with drilling when the choice rigs are available and the rates are dirt cheap? This ain't no reason for crude to crash!
Will investors realize that the sell-off was for a stupid reason? I think so... I see both crude and RIG popping up strong on Monday!
RIG will open strong Monday. The PHLX Oil Service Sector (^OSX) index has solid support at 179, which is where we are now. OSX touched this level in Jan 2015 and again in March 2015 and then bounced up 30% both times. This is a major support level for the entire sector so there is no reason to believe that SDRL will not start bouncing back next week. Resistance to the high side is at 290 so we could see another 30% climb over the next few months.
I remind you that the average price of crude over the last 9 years is $80 US dollars. There is no godly reason we can not touch $80 by the end of 2015!
I think investors will soon realize that cheaper crude is far too painful for everyone concerned.
Shale production did not drop in the US because producers had their price hedged at $90. They kept on pumping like crazy. Why not? They were getting double the market price for their crude. Google "oil price hedge and shale" and you'll see what I am talking about.
The fact that shale producers kept on pumping teed off Russia and OPEC so they purposefully pumped every barrel they could at a time when it made no difference to shale producers. This ticked them off even more so they squeezed out some extra barrels. NO ONE CUT BACK! Especially shale producers in the US. The entire world produced every barrel they could when no one really understood what was really going on. The PRIDE of the key players was at stake; this made their efforts plain stupid. People get into high places by kissing butt, not because they are smart.
This entire fiasco now is all about stupid knotheads, including Obama and his sidekick Perry. Their little move to make a deal with Iran will likely lead to WAR in the middle east! Obama will be remembered as America's dumbest president. The move also ensured that President Donald Trump will be elected to lead the country out of the Obama mess. God, I sure hope so!
What's happening now is like the perfect storm of idiocy. There is no lesson to be learned. The only thing that matters is that the insanity stop before war breaks out in the middle east and sends sweet crude to $200 per barrel.
THERE IS NO SPARE PUMPING CAPACITY ANYWHERE IN THE WORLD. Bombing Isis has to start soon. I guarantee you, if they get hit hard, they will set the oil fields on fire like Irag did years ago. And don't be surprised if Isreal don't destroy Iran's oilfields and send them back to riding camels and herding goats.
I think the stupid oil minister of Saudi Arabia will be forced into retirement and the new King's son will take over and make some deals with Russia to stop them from selling missiles to Iran. Russia will cut production and so will OPEC. If they want to get back at the USA, they could jeopardize world economic recovery with a return to $140 oil prices.
In the meantime, who knows what China will do in the South China Sea. They are another group of power hungry idiots now running around with a lot of US gold because our double stupid politicians cut a deal and let them export their absolute garbage into the US for free. They now have all our jobs. The same is true of Mexico. If they got rich and made peace with the world, maybe the idea would have been a good one. But all they've done is build up their war machine and started bullying small country like the Philippines. China is and has been for thousands of years, hell bent to take over the world!
In my 73 years, I have never seen the world so screwed up. The Doomsday Clock reads 11.57 before midnight (doomsday). Atomic scientists recently moved the minute hand two minutes forward and said we are at the closest point to disaster than we've ever been. (Way to go, Obama.)
Something is going to happen soon. Russia, Saudi Arabia, Venezuela, Brazil, Lybia, Irag, Iran, and many other countries are in too damned much pain from low crude prices. If crude continues to crash, the entire middles east will go up in smoke and we will find ourselves in World War 111.
It is just too damned important to end the insanity.
I see King Salman bin Abdulaziz Al Saud as playing the major role in making a deal with Russia to cut production. Maybe Russia will join OPEC and establish a new friendship with the Saudis? Maybe OPEC and Russia can cut a deal with the major US Producers? Nobody wins when everybody pulls in the opposite direction.
Words of Advice: (1) Buy when everyone else is selling. (2) Don’t buy when everyone else is buying.
And ask yourself this: Who is buying all the RIG shares when everyone is dumping out? The answer is profession market manipulators (Bloomberg's TV) and those that pay millions for their advice.
NOW IS THE TIME TO BUY!
Venezuela suffers Food Crisis and Riots: Rebellion could come at any day. Venezuela holds the world's largest known reserves of crude. They are the 7th largest exporter in the world. They need ~$115.00 per barrel to support their government operations. They can not pay their own government employees. At $47 per barrel, they are toasted, fried, screwed, and will likely face civil war.
The country exports 2 million barrels per day. I don't think the current government can keep the situation bottled up much longer. The question is: What happens to the 2 mbd of oil production if the civil unrest gets any worse?
Now look at this video:
http://www.reuters.com/video/2015/08/01/venezuela-food-crisis-sparks-looting?videoId=365147883
Other OPEC countries are also suffering. The 2nd question is can OPEC keep pumping like crazy while their members have serious financial problems? Can the world deal with the financial collapse of 3-4 OPEC countries? Can Saudi Arabia continue to pump oil or will they give up their 32 mbd quoted? Will they cut a deal with Russia? Will the Saudi King fired the old oil minister and put his son, the current second in command of oil production, in charge? Will Russia join OPEC? I think so. The Saudi King will put his son in charge who will then blame the current situation on the old oil mister and reinstate the quote system and send WTI back to $60 like a rocket! Watch it happen!
Shorts would be caught is one hell of a squeeze!
Venezuela suffers Food Crisis and Riots: Rebellion could come at any day. Venezuela holds the world's largest known reserves of crude. They are the 7th largest exporter in the world. They need ~$115.00 per barrel to support their government operations. They can not pay their own government employees. At $47 per barrel, they are toasted, fried, screwed, and will likely face civil war.
The country exports 2 million barrels per day. I don't think the current government can keep the situation bottled up much longer. The question is: What happens to the 2 mbd of oil production if the civil unrest gets any worse?
Now look at this video:
http://www.reuters.com/video/2015/08/01/venezuela-food-crisis-sparks-looting?videoId=365147883
Other OPEC countries are also suffering. The 2nd question is can OPEC keep pumping like crazy while their members have serious financial problems? Can the world deal with the financial collapse of 3-4 OPEC countries? Can Saudi Arabia continue to pump oil or will they give up their 32 mbd quoted? Will they cut a deal with Russia? Will the Saudi King fired the old oil minister and put his son, the current second in command of oil production, in charge? Will Russia join OPEC? I think so. The Saudi King will put his son in charge who will then blame the current situation on the old oil mister and reinstate the quote system and send WTI back to $60 like a rocket! Watch it happen!
Shorts would be caught is one hell of a squeeze!
TEHRAN: The latest news is that Iran will not allow American or Canadian inspectors to visit its nuclear facilities, an official said in remarks broadcast by state TV on Thursday.
Deputy Foreign Minister Abbas Araghchi said Iran will only allow inspectors from countries that have diplomatic relations with it. The previously undisclosed remarks were made during a Sunday meeting with parliamentarians.
"American and Canadian inspectors cannot be sent to Iran," said Araghchi. "It is mentioned in the deal that inspectors should be from countries that have diplomatic relations with the Islamic republic of Iran."
He also said inspectors from the International Atomic Energy Agency will not have access to "sensitive and military documents."
Wow... what a great deal Obama and Perry negotiated. Will Congress reject it? I doubt it will make any difference even if they do.
Isreal will be forced to strike Iran and destroy its oil fields and nuclear plants. No other way, thanks to President Obama, the worse leader we have ever had. My God what a mess this idiot has led us into!
Please vote for Donald Trump! You very life depends on it!
HOW DOES THIS IDEA GRAB YOU?
With no help from Barack Obama, the U.S. has launched an energy revolution, becoming the world’s leading oil and natural-gas producer. This has dismayed environmentalists and donors in and out of the Obama administration. After all, Obama bet big — really big — on green energy. The oil and gas boom is not the energy revolution Obama was looking for. Saudi Arabia and other petro-monarchies aren’t happy about it either (which is one reason the United Arab Emirates and other OPEC states bankroll anti-fracking propaganda in the West).
Until recently, Saudi Arabia was the world’s biggest oil producer, and it is still arguably the most important one in global markets because its oil is so easy to get out of the ground. The cheaper it is to extract, the easier it is to maintain profits when prices go down. That means the Saudis have an outsized ability to affect the global price of oil. And that’s exactly what they’re doing. “Saudi Arabia,” writes Nathan Vardi of Forbes, “is making a massive $750 billion bet in 2015 that the oil kingdom can endure lower oil prices longer than other major oil producing countries both within and outside OPEC, even including American shale.”
If the Saudis can keep oil at or below $50 a barrel, many American fracking and offshore operations will either have to close up shop — which is already happening — or never launch in the first place, because the profit just isn’t there. This is typical behavior for the Saudis and for OPEC, which, after all, is an international price-fixing cartel that would be illegal under our antitrust laws if it were an American outfit.
The White House, meanwhile, is only too happy to take credit for low gas prices and our decreased dependence on foreign oil. It’s also happy to take advantage of them. Not only does the president boast — as he did in his State of the Union address — about low gas prices, despite having done next to nothing to make them possible (nearly all new oil and gas production has been on state or private lands), he’s taking a bow for the economic benefits as if he deserves the credit. One small example: Obama is constantly touting a newly low unemployment rate as if it were the result of his policies. The odd thing is that, as American Enterprise Institute economist Mark Perry notes, literally all of the job gains of the past seven years were generated by one state: oil-rich Texas. From December 2007 to December 2014, according to Perry, Texas has added 1.25 million payroll jobs and 190,000 non-payroll jobs. Meanwhile, the other 49 states and D.C. combined have 275,000 fewer jobs than they did at the start of the recession.
One wonders: If Obama is responsible for all these job gains, why did he put them all in George W. Bush’s home state? Anyway, back to the non-conspiracy. By artificially keeping oil prices low, the Saudis get to deal a powerful blow to the energy revolution in the U.S. (They also get to deliver a severe economic blow to their enemies the Iranians, which is nice.) In exchange, Obama gets an unearned political windfall and can claim vindication for his ineffectual economic policies. Obama is paying back the Saudis by permanently taking the Arctic National Wildlife Reserve’s billions of barrels of oil off the table for all time. By doing so, he also puts the entire Trans-Alaskan Pipeline System (TAPS) on a starvation diet. North Slope oil production is half of what it once was, and if it falls below 350,000 barrels per day, the TAPS itself will start to become economically and technically unfeasible.
In other words, Saudi Arabia’s short-term economic hit is an investment in future dependence on Saudi oil. Of course, there need not be a conspiracy, just a convergence of economic and political interests. But the fact remains that Obama could never have gotten away with restricting energy development in ANWR before an election or when gas prices were high. This is Obama’s window, and it appears the Saudis are holding it open for him for as long as he needs.
Read more at: http://www.nationalreview.com/article/413012/why-obama-and-saudis-low-gas-prices-jonah-goldberg
Sundance, I think SDRL will open strong Monday. The PHLX Oil Service Sector (^OSX) index has solid support at 179, which is where we are now. OSX touched this level in Jan 2015 and again in March 2015 and then bounced up 30% both times. This is a major support level for the entire sector so there is no reason to believe that SDRL will not start bouncing back next week. Resistance to the high side is at 290 so we could see another 30% climb over the next few months.
I remind you that the average price of crude over the last 9 years is $80 US dollars. There is no godly reason we can not touch $80 by the end of 2015!
I think investors will soon realize that cheaper crude is far too painful for everyone concerned.
Shale production did not drop in the US because producers had the priced hedged at $90. They kept on pumping like crazy. Why not? They were getting double the market price for their crude. Google "oil price hedge and shale" and you'll see what I am talking about.
The fact that shale producers kept on pumping teed off Russia and OPEC so they purposefully pumped every barrel they could at a time when it made no difference to shale producers. This ticked them off even more so they squeezed out some extra barrels. NO ONE CUT BACK! Especially shale producers in the US. The entire world produced every barrel they could when no one really understood what was really going on. The PRIDE of the key players was at stake; this made their efforts plain stupid. People get into high places by kissing butt, not because they are smart.
This entire fiasco now is all about stupid knotheads, including Obama and his sidekick Perry. Their little move to make a deal with Iran will likely lead to WAR in the middle east! Obama will be remembered as America's dumbest president. The move also ensured that President Donald Trump will be elected to lead the country out of the Obama mess. God, I sure hope so!
What's happening now is like the perfect storm of idiocy. There is no lesson to be learned. The only thing that matters is that the insanity stop before war breaks out in the middle east and sends sweet crude to $200 per barrel.
THERE IS NO SPARE PUMPING CAPACITY ANYWHERE IN THE WORLD. Bombing Isis has to start soon. I guarantee you if they get hit hard, they will set the oil fields on fire like Irag did. And don't be surprised if Isreal don't destroy Iran's oilfields and send them back to riding camels and herding goats.
I think the stupid oil minister of Saudi Arabia will be forced into retirement and the new King will take over and make some deals with Russia to stop them from selling missiles to Iran. Russia will cut production and so will OPEC. If they want to get back at the USA, they could jeopardize world economic recovery with a return to $140 oil prices.
In the meantime, who knows what China will do in the South China Sea. They are another group of power hungry idiots now running around with a lot of US gold because our double stupid politicians cut a deal and let them export their absolute garbage into the US for free. They now have all our jobs. The same is true of Mexico. If they got rich and made peace with the world, maybe the idea would have been a good one. But all they've done is build up their war machine and bully small country like the Philippines. China is and has been for thousands of years, hell bent to take over the world!
In my 73 years, I have never seen the world so screwed up. The Doomsday Clock reads 11.57 before midnight (doomsday). Atomic scientists recently moved the minute hand two minutes forward and said we are at the closest point to disaster than we've ever been. (Way to go, Obama.)
Something is going to happen soon. Russia, Saudi Arabia, Venezuela, Brazil, Lybia, Irag, Iran, and many other countries are in too damned much pain from low crude prices. If crude continues to crash, the entire middles east will go up in smoke and we will find ourselves in World War 111.
It is just too damned important to end the insanity.
I see King Salman bin Abdulaziz Al Saud as playing the major role in making a deal with Russia to cut production. Maybe Russia will join OPEC and establish a new friendship with the Saudis? Maybe OPEC and Russia can cut a deal with the major US Producers? Nobody wins when everybody pulls in the opposite direction.
Words of Advice: (1) Buy when everyone else is selling. (2) Don’t buy when everyone else is buying.
And ask yourself this: Whose buying all the SDRL shares when everyone is dumping out? The answer is profession market manipulators (Bloomberg's TV) and those that pay for millions for their advice.
Wake up... the oil crash propaganda is all over the media and the web. All they are delivering is the negative side of every situation. All you hear about is all the oil Iran is bringing to market. Jesus, they will be lucky to bring 500,000 extra barrels by 2017. They need to spend like crazy to rebuild their fields.
Here is another reality no one mentions. Shale producers have been hedged at $90 per barrel for the last year. They've been going all out to deliver as much as the can to Oklahoma. You'd be pumping like mad too if you could get $90.
There are pros and cons on every issue except on Bloomberg's TV where all you get a double whammy of negative all day long. A financial news media like Bloomberg's would naturally present positives and negatives equally unless they were purposefully trying to crash crude.
How much money do you think they are going to make? Billions if they get away with it.
But they're not gonna to get my shares. I not in on margin so I can ride my SDRL into the ground if I have too. And, I fully intend to do just that!
Just mark my word. The oil price decline will turn on a dime by Monday or Tuesday of next week. We will be back to $60 before you know it. I think $60 for WTI and $65 for brent is the perfect price until November or December. Then I see WTI at $65 and Brent at $70 until mid-2016. But I don't think we'll see WTI above $75 or Brent above $80 until 2019.
I don't expect any move up today. But next week we will see a strong bounce back.
NOV WANT TO AQUIRE MORE ASSETS TO GROW INCOME!
HOUSTON — National Oilwell Varco said Tuesday it expects to continue making acquisitions amid low oil prices that have strained profits in the oil service and equipment industry.
Chairman and CEO Clay Williams didn’t specify which companies NOV had in its sights, but said it was in talks with several rivals and would be interested in expanding any of its major businesses, which include a broad spectrum of oil equipment manufacturing and repair.
“Generally in a cyclical downturn, our view is that it becomes a buyer’s market,” Williams said. “We’ve had three (deals) closed so far this year, and we’ve got another half-dozen letters of intent along with some larger transactions that we’ve reached out to some companies to explore.”
The Houston-based oil equipment fabricator said it’s casting such a wide net in order to find deals it can push through.
“It can be a challenging market to get deals done, because most companies don’t particularly want to sell at the bottom,” Williams said. “The way we’ve adjusted our strategy is to increase the number of conversations we’re having.”
Executives at NOV said they’d boosted their revolving credit line to $4.5 billion during the second quarter in order to fund acquisitions. Williams also hinted that the company may dial back its share repurchases in favor of buying other companies after it completes the final $300 million of a $3 billion share repurchase program NOV began in September 2014.
NOV and the entire oil service sector have seen some of their business dry up recently as producers have cut back on drilling due to lower crude oil prices.
“Almost all of our business units posted lower sequential sales due to lower oil prices and lower activity around the globe, with only a few areas like Argentina and the Middle East bucking a trend, ” Williams said. “We also felt the full-quarter effect of customer discounts implemented during the first quarter.”
NOV reported Tuesday second-quarter net income of $286 million, down from $620 million in the second quarter of 2014. Revenues in the second quarter of 2015 were $3.91 billion, down 19 percent from the first quarter and down 26 percent from the second quarter of 2014. The company reported a $17 million, pre-tax charge for layoffs and facilities closure.
NOV said its backlog for capital equipment orders for drilling rigs fell to $9.03 billion, down 13 percent from the first quarter of 2015 and 41 percent from the end of the second quarter of last year. The company saw $313 million in new orders during the quarter.
NOV’s business in maintenance and oil field repairs was also hit hard, executives said, as drillers have used parts off of idled rigs to save money on repairs. NOV said it expects orders to pick up as oilfield service companies gradually exhaust their inventories of parts and are forced to order new ones.
“We believe spending levels are not sustainable,” Williams said. But a recovery may not be right around the corner, he added: “Customers living hand to mouth aren’t sure if a particular unit will ever get another job and sure don’t want to put cash into equipment.”
Shares of National Oilwell Varco gained $1.28 or 3.1 percent to $42.93 on Tuesday. The company’s shares have lost about 34.5 percent so far in 2015 and about 47.5 percent over the past 12 months.
Categories: Crude oil
Tags: National Oilwell Varco | NOV
U.S. stocks pressured by slumping oil giants Exxon, Chevron at MarketWatch.
This is pure propaganda! Crude prices have crashed since one year, so what the hell did everyone expect. Did they think EXXON would make billions more than they did last year? Of course not. EXXON did great considering the price of crude. But we hear from the damn manipulators that the "SLUMPING OIL GIANTS PRESSURED THE ENTIRE MARKET DOWN! Give me a break!
I've been buying oil service stocks since the 1980's. I have never seen, nor would ever imagine that I would see, all the lying propaganda being spread about crude and oil services. My God, somebody should demand that the FTC step in and stop this absolute criminal activity.
Notice also all the subliminal background red and the red dress on Betty Liu and other announcers. This is all illegal manipulation, which explains why Bloomberg bought the TV stations. How much does he earn on the side to sell information on his upcoming propaganda releases?
Oil service investors are under attack!
The problem is that a lot of idiots buy into this shit like blind pigs so you have to give weight to the manipulations.
As an example, not once have I heard anyone on Bloomberg's TV mention the $90 hedge that shale producers have had for the last year. No wonder we are overproducing and the storage tanks are full.
But these hedges come to an end in about a week. There are other hedges but not for $90.00, and not as many in force. Banks are calling in loans and foreclosing assets. PRODUCTION WILL DROP AND OVERSUPPLY WILL DRY UP QUICKLY.
It certainly has worked today... there is no way to beat it other than report it to the FTC, but I doubt anything will come out of that. Quoting opinions of others is not lying. However, putting one negative opinion on after the next is nothing more than market manipulation by the media.
We are being assaulted by market manipulators, mainly Bloomberg's TV.
Look at all the red background colors, and listen to the massive negativity. You might even think the world is ending! All the heavy guns are out crying oil is crashing. It makes no sense for oil to drop from here unless you view it as pure munipulation and realize that manipulation is exactly the same as propaganda. If you repeat the same old shit over and over, the stupid public will start to believe and sell their shares. This is what the manipulators want--your shares at a cheap price.
Sure there is overproduction in the US by shale produces because they bought hedges but this will all dry up in a few weeks and production will fall like a stone. I also don't think OPEC can continue to give away oil so cheap. OPEC is almost ready to come apart at the seams. Every OPEC country is trying to borrow money--they are all in deep trouble, even Saudi Arabia has money problems.
They are meeting with Russia now about cutting production to secure $60 per barrel at least. But Russia wants to sell Iran, Saudis worst enemy, long-range missiles. So how is this gonna play out?
The idiot Obama has open a can of worms that can not be closed. I can hardly wait till this is is gone. I urge everyone to vote for Trump and less reclaim the US and get our jobs back.
Back in again at $14... What you see now with the up and down is really a good sign. This is accumulation by large accounts. They selling short, running the price down 10 cents and then buying hopefully many more shares on the long side than they shorted. They're trying to wear out weak shares and cause them to dump. Just hand tight, RIG will bounce back strong before the close.
I also think RIG is a buy hold now. But it will be a slow climb back up to $25, which we should see by the end of the year.
I also believe the Middle East is getting to bed a hot spot for a lot of heavy fighting. Watch for a big spike in crude any time over the next 4-5 months.
I pounded the table over and over: I told you RIG was gonna make money. I've made over 40K in the last 2 days! Now I'm on the side! ha ha ha ha. You should have bought in....
As the US shale revolution transforms global trade in oil, it is also causing upheaval in the derivatives market.
The companies behind rising US crude production are selling more of their output in advance to guarantee revenues. That is putting downward pressure on future oil prices – making it harder for those companies to enter crucial hedging contracts.
Since the start of 2011 crude production from the Bakken field in North Dakota, the most prolific US shale oil field has nearly tripled.
The worry for the independent companies is to attract the credit they need to keep drilling, most of these companies sell futures contracts to show lenders they have locked in an oil price that is higher than their cost of production.
Though the breakeven oil price differs from company to company – depending on production costs where they are active and the company’s debt profile – some analysts say futures prices are approaching a danger zone.
“North American oil production growth is contingent on continued strength in forward oil prices. To grow oil production, the North American exploration and production industry needs to see a minimum of $85-$90 a barrel WTI,” says Stephen Shepherd at Simmons and Co, a Houston-based energy investment bank.
One banker who arranges hedging contract for independents spells out the implications bluntly: “If the smaller guys can’t hedge above their cost of production, they’re dead. They wouldn’t be able to borrow so they wouldn’t be able to drill.”
That banker and others caution that the smallest companies only tend to hedge one or two years ahead, where futures prices have not fallen as much.
The principal reason for the downward drift in prices is the hedging activities of shale oil producers themselves. As the volume of production in the hands of independent producers grows – EOG, a bellwether independent oil producer, doubled crude and condensate production between 2010 and 2012 – so does their hedging activity.
While hedging does not have to be done through the futures market – companies can also use options, or enter swap contracts with banks – all hedging strategies tend to affect the futures market, because banks have to cover their own positions. And producers tend to hedge further into the future than oil users such as airlines buy production. This tends to depress prices further out.
“There has always been a mismatch between producers and consumers in the futures market, but the increase in production by independents has made it worse,” says Jonathan Whitehead, global head of commodities markets at Société Générale.
The question for shale oil producers is whether anything will offset their growing hedging activity.
There has always been a mismatch between producers and consumers in the futures market, but the increase in production by independents has made it worse
In a normal market, natural buyers of oil – such as refineries and fuel users, who consume oil products – would be attracted back into the market, using the lower futures prices to lock in prices. Indeed, some market participants say there have been signs of some consumers being tempted back into the market by the fall in futures prices.
“In the past six weeks, we have seen some transportation companies taking advantage of low prices at the back end of the curve to hedge further out than normal,” says Riccardo Bortolotti, head of energy corporates in BNP Paribas’ commodity derivatives team.
But so-called consumer hedging has been declining in recent years as volatility in the oil market has fallen, making hedging less attractive. Airlines, some of the largest buyers of future oil, have also been constrained in their hedging activity by relatively weak balance sheets.
For some analysts, that means long-dated prices are likely to be lower than prompt prices for the foreseeable future, a market condition known as “backwardation”.
“We are heading towards persistent backwardation at the long end of the curve, reminiscent of the 1990s when the majors divested chunks of production to independents,” says Jeffrey Currie, global head of commodities research at Goldman Sachs. If true, the independent pioneers of the shale revolution will need to get to grips with the downside.
BEST NEWS FOR CRUDE PRICES This is the best news I've seen in a long time. Russia and Saudi Arabia getting to be friends. The Saudis have said they are ready to reduce production if Russia will also reduce production. It looks like Russia is ready to agree!
LINK
BEST NEWS FOR CRUDE PRICES This is the best news I've seen in a long time. Russia and Saudi Arabia getting to be friends. The Saudis have said they are ready to reduce production if Russia will also reduce production. It looks like Russia is ready to agree!
LINK
EXTRA CRUDE FROM IRAN IS NO PROBLEM: Iranian oil fields need a lot of workover before they can crank up production by even 0.5 mbd. Right now they are pumping all out doing 1.2 mbd and will not be able to raise this number to 2 mbd for at least a year. The ships loaded offshore are filled with condensate and of no real threat to the oil market. Iran will also have a hard time getting companies to commit to a long-range program to rebuild their fields because the threat of war is VERY REAL. They will likely continue trying to develop a nuclear weapons and Isreal will be forced to destroy them in another 6-day war like what happened in Egypt in 1967.
The real problem right now is the incredible horrendous attempt by Bloomberg's TV to manipulate the price of crude. They have made a media assault on crude prices, determined to run crude down. It is so obvious that it is sickening. Someone in the US should report them to the FTC! I'm in Asia, 12 hours in front of New York. Bloomberg's has been beating up crude all day long. If you watch close, you'll see they are using a lot of RED colors to send a subliminal messages that oil is crashing. Many of their female announcers are dressed in red. Some of the males are wearing red ties. Lots of RED says crude is going to crash. Tons of negativity. The only so-called experts they put on the tube gives every reason you can imagine to suggest crashing oil prices. The background behind these so-called experts is RED! These experts do not tell you about ONE single positive.
The real news is about the fight between shale producers and OPEC. To understand this fight, you need to study the hedges that shale producers are using to fight OPEC. This is why US production is so high. I strongly urge you to Google "shale producers hedge oil"
You will learn a lot!
This will help you understand why US production is high and what's really going on with OPEC. OPEC is trying to beat the shale producers and they are fighting back with oil price hedges.
EXTRA CRUDE FROM IRAN IS NO PROBLEM: Iranian oil fields need a lot of workover before they can crank up production by even 0.5 mbd. Right now they are pumping all out doing 1.2 mbd and will not be able to raise this number to 2 mbd for at least a year. The ships loaded offshore are filled with condensate and of no real threat to the oil market. Iran will also have a hard time getting companies to commit to a long-range program to rebuild their fields because the threat of war is VERY REAL. They will likely continue trying to develop a nuclear weapons and Isreal will be forced to destroy them in another 6-day war like what happened in Egypt in 1967.
The real problem right now is the incredible horrendous attempt by Bloomberg's TV to manipulate the price of crude. They have made a media assault on crude prices, determined to run crude down. It is so obvious that it is sickening. Someone in the US should report them to the FTC! I'm in Asia, 12 hours in front of New York. Bloomberg's has been beating up crude all day long. If you watch close, you'll see they are using a lot of RED colors to send a subliminal messages that oil is crashing. Many of their female announcers are dressed in red. Some of the males are wearing red ties. Lots of RED says crude is going to crash. Tons of negativity. The only so-called experts they put on the tube gives every reason you can imagine suggesting crashing oil prices. The background behind these so-called experts is RED! These experts do not tell you about ONE single positive.
The real news is about the fight between shale producers and OPEC. To understand this fight, you need to study the hedges that shale producers are using to fight OPEC. This is why US production is so high. I strongly urge you to Google "shale producers hedge oil"
You will learn a lot!
This will help you understand why US production is high and what's really going on with OPEC. OPEC is trying to beat the shale producers and they are fighting back with oil price hedges.
AS REPORTED OVER AND OVER AGAIN BY BLOOMBERG'S TV, CHINA STOCKS SANK THE MOST SINCE 2007.
OMG, China stocks have been ripping since 2007. Isn't it about time for a healthy 10% correction? Oh yes, I forgot... China industrial production dropped 3 tenths of one percent in the last year. OMG, we are headed into a financial crisis similar to Black Friday back in 1929. OMG, sell out everything quick before the end of the world comes.
Who controls market manipulation is the US? The mafia or the FTC? Or, is the FTC controlled by the mafia? Does the mafia own Bloomberg's TV? Maybe they also own the FTC?
We are down now due to overproduction by OPEC and US shale producers.
Many shale producers bought a 1-year hedge at $90 barrel so they continued to pump like crazy. They are still pumping like crazy because they have two more weeks before their hedge expires. Naturally... USA production is at an all-time high. Just watch what happens when the hedge disappears. Can you say USA PRODUCTION CRASH?
The stupid thing is that OPEC pumped like crazy and dumped its crude at bargain prices to reclaim market share from US shale producers while most of the frackers were safely hedged. Moreover, the ones that weren't hedged kept on producing to pay their financial backers and keep from going bankrupt. OPEC should have dropped production and kept the price in the $60 to $70 range, but their foolish pride ruled the day.
OPEC's stupid mistakes have caused a serious turmoil at a time when Greece was in crisis, China's stock market (up over 100% on the year) went through a healthy (overdue) correction. And, believe it or not, China’s industrial profits fell a whopping 3/10ths of one percent for the year. OMG, China lost 3/10ths of one percent so, according to Bloomberg's TV, we are headed into a steep selloff all over the globe. This will lead to a world depression, breadlines, and CEO's selling apples and pencils on the street. Best bet now is sell out all your oil stocks and retreat into the mountains and grow pot and make moonshine.
As confirmation of the world financial crash coming in a few weeks, GOLD, the place where smart investors hide out during bad times, is dropping like crazy. Ha ha ha ha... what a friggin joke being played on oil investors by oil manipulators!
The facts are simple! Forty dollar oil will cause a worldwide economic boom and bankrupt OPEC members and cause civil uprising in the middle east. But before this happens, OPEC oil ministers will resign or face a public beheading.
DO THE RESEARCH YOURSELF!
The Saudi's are borrowing billions of dollars. Venezuela is flat broke and facing civil unrest and maybe even civil war. Kuwait has deep financial troubles. UAE slashing spending by 22 percent. Iraq declares emergency measures to finance its 2015 budget; Japan had to loan it $10 billion secured by future oil deliveries. Libya, Nigeria, Qatar, and Iran also in deep financial dodo. The point being is that OPEC is committing mass suicide like a bunch of stranded whales; they are not hurting US shale producers even by one dollar per barrel.
To make matters worse; war drums beating all over the middle east! Isis attacking the oil fields in Irag and Lybia. Turkey facing all out war. Iran shouting death to Isreal and the US Infidels. Yemen and the Saudis fighting every day. All this while Obama visits his father's hometown in Africa.
Add to this the fact that the Russian ruble recently fell to a four-month low as Brent crude extended losses in a "BIG BEAR" market. Russia’s central bank has no ammo to stop the fall.
On top of all this, the friggin market manipulators (Bloomberg TV is the most influential, followed by 100's of Internet financial advisors) are having a field day beating up on crude and oil services. The big news out today is that a large amount of money was shifted from long crude to short crude positions. This means crude is crashing maybe to $20 or even $10. Bullcrap! How long do you think its takes for a short to flip over to a long position? Can you say 30 seconds?
By the way, notice how much Bloomberg's TV uses a red background color every time they offer up negative questions like: Is crude headed to $40? These guys are pros at scaring the hell out of weak oil investors. Think about this... the only way oil market manipulators can make a ton of money is scaring you into dumping your shares at a cheap price. Then when you dumped out, they will replace the red with green and blue and start asking questions like: Is crude going back to $70? Then they will sell you back your shares at a fat profit for them.
Now is the time to BUY BUY BUY
It's stupid to compare 2015 price adjustment with 2008 and 1998. We are down now due to overproduction by OPEC and US shale producers.
Many shale producers bought a 1-year hedge at $90 barrel so they continued to pump like crazy. They are still pumping like crazy because they have two more weeks before their hedge expires. Naturally... USA production is at an all-time high. Just watch what happens when the hedge disappears. Can you say USA PRODUCTION CRASH?
The stupid thing is that OPEC pumped like crazy and dumped its crude at bargain prices to reclaim market share from US shale producers while most of the frackers were safely hedged. Moreover, the ones that weren't hedged kept on producing to pay their financial backers and keep from going bankrupt. OPEC should have dropped production and kept the price in the $60 to $70 range, but their foolish pride ruled the day.
OPEC's stupid mistakes have caused a serious turmoil at a time when Greece was in crisis, China's stock market (up over 100% on the year) went through a healthy (overdue) correction. And, believe it or not, China’s industrial profits fell a whopping 3/10ths of one percent for the year. OMG, China lost 3/10ths of one percent so, according to Bloomberg's TV, we are headed into a steep selloff all over the globe. This will lead to a world depression, breadlines, and CEO's selling apples and pencils on the street. Best bet now is sell out all your oil stocks and retreat into the mountains and grow pot and make moonshine.
As confirmation of the world financial crash coming in a few weeks, GOLD, the place where smart investors hide out during bad times, is dropping like crazy. Ha ha ha ha... what a friggin joke being played on oil investors by oil manipulators!
The facts are simple! Forty dollar oil will cause a worldwide economic boom and bankrupt OPEC members and cause civil uprising in the middle east. But before this happens, OPEC oil ministers will resign or face a public beheading.
DO THE RESEARCH YOURSELF!
The Saudi's are borrowing billions of dollars. Venezuela is flat broke and facing civil unrest and maybe even civil war. Kuwait has deep financial troubles. UAE slashing spending by 22 percent. Iraq declares emergency measures to finance its 2015 budget; Japan had to loan it $10 billion secured by future oil deliveries. Libya, Nigeria, Qatar, and Iran also in deep financial dodo. The point being is that OPEC is committing mass suicide like a bunch of stranded whales; they are not hurting US shale producers even by one dollar per barrel.
To make matters worse; war drums beating all over the middle east! Isis attacking the oil fields in Irag and Lybia. Turkey facing all out war. Iran shouting death to Isreal and the US Infidels. Yemen and the Saudis fighting every day. All this while Obama visits his father's hometown in Africa.
Add to this the fact that the Russian ruble recently fell to a four-month low as Brent crude extended losses in a "BIG BEAR" market. Russia’s central bank has no ammo to stop the fall.
On top of all this, the friggin market manipulators (Bloomberg TV is the most influential, followed by 100's of Internet financial advisors) are having a field day beating up on crude and oil services. The big news out today is that a large amount of money was shifted from long crude to short crude positions. This means crude is crashing maybe to $20 or even $10. Bullcrap! How long do you think its takes for a short to flip over to a long position? Can you say 30 seconds?
By the way, notice how much Bloomberg's TV uses a red background color every time they offer up negative questions like: Is crude headed to $40? These guys are pros at scaring the hell out of weak oil investors. Think about this... the only way oil market manipulators can make a ton of money is scaring you into dumping your shares at a cheap price. Then when you dumped out, they will replace the red with green and blue and start asking questions like: Is crude going back to $70? Then they will sell you back your shares at fat profit for them.
What the heck is gonna happen next?
UK Offshore Licensing Round Is Among The Largest In 50 Years!
Offshore North Sea drilling coming back to life!
The UK Oil and Gas Authority (OGA) announced 41 new licenses Monday to explore the U.K. Continental Shelf in the North Sea. This follows the additional award of 134 licenses in November 2014. The total of 175 licenses covering 353 blocks renders the 28th licensing round among the largest in the five decades since the first licensing round occurred in 1964.
The latest awards were primarily in the northern and southern sectors of the UK North Sea but included fields in the west of Shetland region. Shell was awarded one license, covering ten blocks, Italy's Eni was awarded three licenses, covering 23 blocks, and OMV was awarded one license, covering nine blocks. Other companies that were awarded licenses include Total, BP, Nexen and UK independents Parkmead Group and Hurricane Energy.
OGA chief executive Andy Samuel commented, "The UK continental shelf remains a world-class hydrocarbon province where significant resources and economic value remain to be realized...The good level of interest in the 28th round highlights the continued attractiveness of the UK's oil and gas resources...Licenses are, however, just a start and industry, government, and the OGA now need to work together to revitalize exploration activity across the basin and convert licenses into successful exploration wells."
The UK Department of Energy and Climate Change, which transferred regulation of the industry to the OGA in April, has opposed direct tax incentives for exploration drilling of the kind found in Norway. The body has warned that this structure could lead to a series of poorly targeted drilling endeavors.
UK energy minister Andrea Leadsom underscored tax cuts proposed by the government in March that it says will attract an additional $6.2 billion of North Sea investment and new production totaling at least 120 million barrels of oil equivalent in the upcoming five years.
Leadsom said, “We are determined to make the most of our North Sea resources to provide secure, reliable energy for hardworking families and businesses and reduce our reliance on volatile foreign imports.
“We are backing our oil and gas industry which supports hundreds of thousands of jobs across the UK."
“The 28th offshore licensing round comes after the Government announced a major package of support in March to encourage £4bn of additional investment in the North Sea which will prolong the life of this vital industry.”
UK Offshore Licensing Round Is Among The Largest In 50 Years!
The UK Oil and Gas Authority (OGA) announced 41 new licenses Monday to explore the U.K. Continental Shelf in the North Sea. This follows the additional award of 134 licenses in November 2014. The total of 175 licenses covering 353 blocks renders the 28th licensing round among the largest in the five decades since the first licensing round occurred in 1964.
The latest awards were primarily in the northern and southern sectors of the UK North Sea, but included fields in the west of Shetland region. Shell was awarded one license, covering ten blocks, Italy's Eni was awarded three licenses, covering 23 blocks, and OMV was awarded one license, covering nine blocks. Other companies that were awarded licenses include Total, BP, Nexen and UK independents Parkmead Group and Hurricane Energy.
OGA chief executive Andy Samuel commented, "The UK continental shelf remains a world-class hydrocarbon province where significant resources and economic value remain to be realized...The good level of interest in the 28th round highlights the continued attractiveness of the UK's oil and gas resources...Licences are, however, just a start and industry, government and the OGA now need to work together to revitalize exploration activity across the basin and convert licences into successful exploration wells."
The UK Department of Energy and Climate Change, which transferred regulation of the industry to the OGA in April, has opposed direct tax incentives for exploration drilling of the kind found in Norway. The body has warned that this structure could lead to a series of poorly targeted drilling endeavors.
UK energy minister Andrea Leadsom underscored tax cuts proposed by the government in March that it says will attract an additional $6.2 billion of North Sea investment and new production totaling at least 120 million barrels of oil equivalent in the upcoming five years.
Leadsom said, “We are determined to make the most of our North Sea resources to provide secure, reliable energy for hardworking families and businesses and reduce our reliance on volatile foreign imports.
“We are backing our oil and gas industry which supports hundreds of thousands of jobs across the UK."
“The 28th offshore licensing round comes after the Government announced a major package of support in March to encourage £4bn of additional investment in the North Sea which will prolong the life of this vital industry.”
I dumped 10M yesterday at $13.60. Bought them back today at $13.21
WTI WILL BOUNCE BACK BEFORE 1 PM:
THE PRICE IS JUMPING OFF A ROCK BOTTOM JUST BELOW $48.50 -- I THINK IT'S GETTING READY TO TURN NORTH TO CLOSE BETWEEN $49.50 AND $50. THE WORSE IS OVER.
WTI CHART LOOKS SHAKY:
-Near term, crude is declining within an extremely steep channel. The market is so weak that the latest bounce couldn’t even make it to channel resistance. 44.60 (close of the 3/18 low day) is a level that could end up providing support for a bounce. A move above 51.39 is needed in order to suggest that the near-term picture is turning.
RIG DON'T GET NO CHEAPER THAN NOW:
Offshore driller beat down to the bottom of the sea. Stupid investors throwing in the towel left and right. NOW IS THE TIME TO BUY!
Deepwater sweet crude can by brought online at $35 per barrel. Deep water wells pump for decades. The average cost of shale is maybe $55 barrel, and the wells last 2 years. Shale faces many challenges. Deepwater was the wave of the future a few years ago--nothing has changed today. Sure, it's gonna take another two years for RIG to reach $60 share, but once we get passed the bullcrap, it will be a smooth road up from this 25 years bottom.