OPEC EXPECTED TO CUT - WHERES THE CUT FROM UNCLE SAM

[Douglas Buckland + 6,308]

11 hours ago, Alfredo said:

United States is a Free Market Economy, it has oil, technology and financial resources, it seeks a greater market share.
Market oil prices are low today, and U.S. Senators Urge Saudi Arabia To end oil war.
The United States is a market economy or it is not.

Okay, I would agree with you IF Saudi Arabia and Russia also operated on a market economy. When you have national oil companies being subsidized and directed by national governments, then they are no longer operating on a market driven economy. How do you accommodate this in your competition? 

[Pierre Ordinaire 0]

On 3/5/2020 at 11:39 AM, Old-Ruffneck said:

30$bbl on WTI? Hovering around 45$ right now, I doubt 30$'s range is in near future. Might hit 40 before a rebound in next 2 weeks but then is the time to buy, by September it should be back in upper 50's to lower 60's$ range.

I hope you didn't follow your advice.  😂

[Old-Ruffneck + 1,246]

6 minutes ago, Pierre Ordinaire said:

I hope you didn't follow your advice.  😂

Yeah, 3 weeks ago who'd a guessed the Middle East would pump all out?? Still is a good time to buy 6 months out + as it will rise. We should buy all they can produce. 

[Douglas Buckland + 6,308]

15 minutes ago, Old-Ruffneck said:

Yeah, 3 weeks ago who'd a guessed the Middle East would pump all out?? Still is a good time to buy 6 months out + as it will rise. We should buy all they can produce. 

Perhaps....but where the heck do you put it!

I’m guessing that before too long, Saudi Arabia will once again start feeling the pain and call this nonsense off. Keep in mind that they tried this in 2014, when we didn’t have a virus scare, significant drop in demand and a looming global recession. Didn’t work then so I can’t see it working now.

[Old-Ruffneck + 1,246]

4 minutes ago, Douglas Buckland said:

Perhaps....but where the heck do you put it!

Stripper wells, reverse the valves and pump back into the ground. Not a hard thing to do and Lord knows we have plenty wells producing 10bd so formations can handle what ya took out over the years. Just a thought. At 24$ a barrel, I am sure we could come up with some easy holding ponds too.

[Tomasz + 1,608]

Terrible panic on the market. Senators' letter and today's reading of inventories causes a drop of 15%. Oil reserves in the USA are, of course, not the whole market but a significant part of it. It is true that stocks grow mainly in Asia. It's just that the US is the most visible part of the market every Wednesday. These stocks have been falling for over 1 month and are not growing by 7 million barrels today.

A letter from 13 senators shows that America will press hard on Saudi Arabia to end this senseless war. The prince has a very weak position in the country and KSA is completely dependent on the US military umbrella.

 

They are also ideal conditions for a coup d'état in Saudi Arabia, and perhaps this would be one of the most sensible ways of solving the conflict and saving faces by the Saudis.

I do not mean that prices should go up but both of these events are rather bullish in my opinion and as a result we have a drop of several percent.

 

Edited March 18, 2020 by Tomasz

[Thecrypticman 0]

On 3/5/2020 at 6:33 AM, BLA said:

United States is a Free Market Economy

The strongest Economy in the world.

Russia can pressure U.S. to cut production all they want.  Not gonna happen. 

AHAHAHAHA Wow! People still actually believe this drivel?!?!?!

The People's Republic of China is the world's strongest economy. The US is an oligarchy, and a criminal and bankrupt one at that.

Edited March 18, 2020 by Thecrypticman

[Fab-mind + 1]

25 minutes ago, Thecrypticman said:

AHAHAHAHA Wow! People still actually believe this drivel?!?!?!

The People's Republic of China is the world's strongest economy. The US is an oligarchy, and a criminal and bankrupt one at that.

One post? Should we assume you created this single post in an effort to troll? Pack your bags and head to China sir. You are the Problem! 

[Fab-mind + 1]

Just now, Fab-mind said:

One post? Should we assume you created this single post in an effort to troll? Pack your bags and head to China sir. You are the Problem! 

And yes, I did create this account to make this single post. 

[Uvuvwevwevwe Onyetenyevwe Ugwemuhwem Osas + 96]

Will Russia and China be furloughing internet trolls?
Or are they an essential service?

My heart goes out to all the trolls who are laid off.

[James Regan + 1,776]

AND THIS IS MY BIG MOMENT I TOLD YOU ALL😂

FIRST POST

$30Bbl looming for WTI, quite rightly so Russia pressuring for a US cut in production. Why should OPEC and others take the load while the USA continues with reckless abandon.

Great time for Russian projects to put a well needed roadblock for LTI Over Production.

#brandseer ( look it up)

Edited March 18, 2020 by James Regan
Let’s forget the hysteria comment lol

[Boat + 1,324]

The Drilling Productivity Report came out a couple days ago. It appears both wells drilled and completions remain close in comparison. That said the total number of DUCT’s is at an all time high. There has been no overall reduction. Production gains are small but still gains

8 hours ago, Tomasz said:

Terrible panic on the market. Senators' letter and today's reading of inventories causes a drop of 15%. Oil reserves in the USA are, of course, not the whole market but a significant part of it. It is true that stocks grow mainly in Asia. It's just that the US is the most visible part of the market every Wednesday. These stocks have been falling for over 1 month and are not growing by 7 million barrels today.

A letter from 13 senators shows that America will press hard on Saudi Arabia to end this senseless war. The prince has a very weak position in the country and KSA is completely dependent on the US military umbrella.

 

They are also ideal conditions for a coup d'état in Saudi Arabia, and perhaps this would be one of the most sensible ways of solving the conflict and saving faces by the Saudis.

I do not mean that prices should go up but both of these events are rather bullish in my opinion and as a result we have a drop of several percent.

 

US oil reserves go up and down depending on the whims of traders buying and selling imported oil. Or big companies and countries that have refineries in the US. US production and consumption are close to balance. Maybe that’s changing with the virus. Well have to wait to see the numbers to determine the impact. Traders on the other hand represent external volatility, who knows what goes through their minds. Lol

[mad-trader + 25]

Strategic reserve is buying..   22.20  - 25.20 in 2 hours

https://www.energy.gov/articles/department-energy-executes-direction-president-trump-announces-solicitation-purchase-crude

Articles need a timestamp.. hate this.

Home » Department of Energy Executes On Direction Of President Trump, Announces Solicitation To Purchase Crude Oil For The SPR To Provide Relief To American Energy Industry

WASHINGTON, D.C. – At the direction of the President of the United States, Donald J. Trump, the Department of Energy (DOE) will fill the Strategic Petroleum Reserve (SPR) to its maximum capacity by purchasing 77 million barrels of American-made crude oil. Today, DOE announced a solicitation for the purchase of an initial 30 million barrels to begin filling the SPR. Solicitations for additional purchases will follow.

“DOE is moving quickly to support U.S. oil producers facing potentially catastrophic losses from the impacts of COVID-19 and the intentional disruption to world oil markets by foreign actors,” said U.S. Energy Secretary Dan Brouillette. 

Under this initial solicitation, DOE will purchase up to 30 million barrels of sweet and sour crude oil with a focus on small to midsize U.S. oil producers. 

“The small to midsize oil producers, which are the focus of the initial crude oil purchase, employ thousands of Americans,” said Under Secretary of Energy Mark W. Menezes. “These businesses have been particularly hard hit by recent events but under President Trump’s leadership, we are taking swift action to assist hard hit producers and deliver strong returns to the taxpayer.”

Today’s solicitation is the first step toward filling the SPR to its maximum capacity.  The Department is working with Congress to finalize the funding to support the purchase of the full 77 million barrels of oil, consistent with the President’s directive.

“The SPR is mission-ready to receive up to 685,000 barrels per day,” explained Assistant Secretary for Fossil Energy, Steven Winberg. “With its extensive storage, pipeline, and marine infrastructure along the Gulf Coast, the SPR will help relieve oil-related disruptions to our economy.”

Recognizing the private sector needs time to plan for delivery logistics, the solicitation is for crude oil to be delivered in May and June; although, early April deliveries are encouraged.

Edited March 19, 2020 by mad-trader

[mad-trader + 25]

Around 10:20 CT mar 19  the liquidity  on MAY CL  just disappeared.   APR worse.  I've been hitting limit downs on ES all week.. This was very different..    It was like a 1 minute or longer  HALT..  we'll see if anyone else knows and I'll look at trades transactions when I get a chance. 

Edited March 19, 2020 by mad-trader

[wrs + 893]

Here it is, RRC considering production limitations.

 

https://www.wsj.com/articles/texas-weighs-curtailing-oil-production-for-first-time-in-decades-11584646724

 

Looks like Shellman will be happy about this and I am too.  Don't want to give away the resources at these prices.  I am fully on board with Mike regarding that.  I have had to sell burned timber and this is more or less the same thing.

[Gerry Maddoux + 3,627]

The markets reflected this very quickly: the pipeline basket Alerian (AMLP) traded up almost 20% and the big energy EFT traded upwards of 5%. I figured the Senate letter had made its way to MbS but that's later. 

Buying to fill the vaults of the SPR makes great sense here, too. 

[JoMack + 549]

The Texas RR Commissioner Ryan Sitton apparently talked to the Saudis and Russian oil ministers and Sitton came back to tell the O&G Industry that they would NOT do any proration of production in Texas, the largest oil and gas producer in the U.S.  So, the giants have turned to their squabble over cutting production and have turned their eyes to U.S. producers once again.  Apparently Sitton signaled that SA and Russia want the U.S. to cut production?  Incredible, but the industry might have to do it unintentionally.  Just have to say the 2 giants need to go f--- themselves!  They may bring down the U.S. oil producers for a time, but they'll eat their capacity in the long term and I say "all the better"!!

[James Regan + 1,776]

59 minutes ago, JoMack said:

The Texas RR Commissioner Ryan Sitton apparently talked to the Saudis and Russian oil ministers and Sitton came back to tell the O&G Industry that they would NOT do any proration of production in Texas, the largest oil and gas producer in the U.S.  So, the giants have turned to their squabble over cutting production and have turned their eyes to U.S. producers once again.  Apparently Sitton signaled that SA and Russia want the U.S. to cut production?  Incredible, but the industry might have to do it unintentionally.  Just have to say the 2 giants need to go f--- themselves!  They may bring down the U.S. oil producers for a time, but they'll eat their capacity in the long term and I say "all the better"!!

Jo I feel your pain but from a different angle, I guess you need to live with it and let the situation play out, ours didn’t work out but I’m told that’s TS and I’m a bitter little person, you have my sympathy and maybe it will end up with a balanced world oilfield so we can all get back to work.

Oilfield reset required!

You are going through what we had to 4 years or more ago and it is not a nice situation.

No need for world oil dominance as the next war is with metal objects if we don’t come to a happy medium.

That is if you work in the oilfield I don’t know?

 

Edited March 20, 2020 by James Regan

[Gerry Maddoux + 3,627]

Well, in the short run, I suppose the KSA can produce as much oil as it can possibly pump. And so can Russia. 

Since it takes KSA about $85/bll to run its welfare state and Russia can produce oil for an alleged $40, it's only going to take a few years to get the answer. I'd have to guess here, but at the end of all that I'd bet odds that there's some guy down in the Delaware basin running one rig, smiling, just doing his thing. And if you go a few miles down the road you'll see another one. Just waiting until the Saudis pump their wells into nothing but sea salt and boggy sand. 

I'd kind of like to just see what happens here. Drill. Produce. Have a little patience. And please don't take the strippers and use them for repositories, because I've got a few of those old relics and we've grown old together. 

Since we're all just watching the world turn over the Internet these days, running out into the yard to watch an occasional jet fly over, and since the Dow-Jones is going to hell and you can't even watch current sports on TV, why not watch the Saudi man-child run his country into the ground? Sounds like sport to me. 

[Old-Ruffneck + 1,246]

25 minutes ago, Gerry Maddoux said:

And please don't take the strippers and use them for repositories, because I've got a few of those old relics and we've grown old together.

Well, if crude gets back in the teens it makes sense to buy as much as the US can afford. If we can afford 750mb or more, I say go for it and yup, old non producing strippers is a good viable safety net. 

[0R0 + 6,251]

On 3/18/2020 at 2:38 PM, Thecrypticman said:

AHAHAHAHA Wow! People still actually believe this drivel?!?!?!

The People's Republic of China is the world's strongest economy. The US is an oligarchy, and a criminal and bankrupt one at that.

China is a low margin economy with a declining population and the demographics of a retirement community. 

Its general condition is of declining consumption relative to production. It is entirely export dependent for economic function, and  is entirely dependent on imported energy for agrichemical and transportation uses. Without imported agrichem and their precursors, China can't come close to feeding itself. Pesticide and herbicide and fertilizer application rates in China are 4X that of US EU or Russian or Thai farming. The country is not viable on its own. 

The financial structure of China is totally insolvent and has been so for half the decade. But since the government controls both the banks and the biggest borrowers (80% SOEs) they don't care that the entire Chinese industrial enterprise produces no real return on investment. That will change once the retirement of their baby boomers reaches the half way point and they stop pushing savings into the financial system and start pulling money out. At that point the system becomes cash flow negative and they have to print up money beyond the 200% of GDP that is already covered by money supply. 

Did you swallow Frankfurter?

Edited March 21, 2020 by 0R0

[choderlos 0]

On 3/5/2020 at 3:33 PM, BLA said:

United States is a Free Market Economy

The strongest Economy in the world.

Russia can pressure U.S. to cut production all they want.  Not gonna happen. 

 

[choderlos 0]

Are you so sure? There is no need for a government decision in the USA to cut production. Very low oil prices might well force 'independent' companies to cut it down, for lack of customers when Saudi poil is so cheap.. 

[0R0 + 6,251]

1 minute ago, choderlos said:

Are you so sure? There is no need for a government decision in the USA to cut production. Very low oil prices might well force 'independent' companies to cut it down, for lack of customers when Saudi poil is so cheap.. 

Of course they don't invest more than they need to in order to cover their contracts as about half of production was sold forward. They will wait till prices head back and inventories look more lean so promising of better prices going forward. 

[Douglas Buckland + 6,308]

 

“AHAHAHAHA Wow! People still actually believe this drivel?!?!?!

The People's Republic of China is the world'sstrongest economy. The US is an oligarchy, and acriminal and bankrupt one at that.”

I guess it’s true! There IS one born every minute!😂