Government Bailout of Oil Industry

[surrept33 + 609]

17 minutes ago, zextaz said:

it would be cheaper for Russia and opec to buy USA asset at current valuation a lot of stocks like OVV that have a 250,000=500,000 production a day are trading at 0,45 earning OVV as per example was a 30-50$ stock 2019-2020 now trading at 2$ the entire float worth 500 million $ and cEO get paid 30 million$ ???????? they could just buy them out for 1 billion fire the CEO and all employee and IDLE the business to 0 and take 500,000 barrel a day out of the market

Russia buying oil companies in the US? With the current incarnation of it, CFIUS would have probably have a cow:

https://home.treasury.gov/policy-issues/international/the-committee-on-foreign-investment-in-the-united-states-cfius

[zextaz + 20]

those law are pretty easy to by pase just make 1 million fictive trading account with various name and all vote in favor

[zextaz + 20]

the botnet investor crew will always agree with kremlin decision I have seem oil business that was trading at 5$ a share on open market and suddenly the cEO decided that they agreed to sell buinsess at 0,50 cent a share next day market open stock drop from 5$ to 0,50 cent nothing we can do the botnet investor crew agreed ?

[zextaz + 20]

then banks agreed too they suggest investor to cash in stock at 0,50 cent a share and eventually stocks got delisted and drop to 0,45 cent for those that dint agree off market  

[zextaz + 20]

I agree if Russia would step in and inform they want to buy USA asset the law might stop them but on other hand if they have a 1 million bot investor crew using proxy across various bank system they just buy asset and have the bigger voice the bots investor crew always agree with krimlin

[zextaz + 20]

their technic to propel cheaper and cheaper asset value and prices is too buy a stock create a small high and then dump it this create a over market ask/demand price they loose money but in long term they create massive downtrend and undervalue of asset and when investor see massive 20% drop in 1 day sell out and take losses and they repeat cycle after cycle until values goes to 0 

[Douglas Buckland + 6,308]

Good plan! Give it a shot and see how far you get with it.

[wrs + 893]

7 hours ago, zextaz said:

I agree if Russia would step in and inform they want to buy USA asset the law might stop them but on other hand if they have a 1 million bot investor crew using proxy across various bank system they just buy asset and have the bigger voice the bots investor crew always agree with krimlin

US stocks are not traded like bitcoin. It's a lot harder to get an account for trading stocks and I don't believe you can do it remotely.  You must fund it with an actual bank account and not a credit card.  You must provide REALID and SS to trade.  No amount of bots could do the buying you suggest.

[Douglas Buckland + 6,308]

8 minutes ago, wrs said:

US stocks are not traded like bitcoin. It's a lot harder to get an account for trading stocks and I don't believe you can do it remotely.  You must fund it with an actual bank account and not a credit card.  You must provide REALID and SS to trade.  No amount of bots could do the buying you suggest.

Ahhhh....somebody that knows whereof he speaks!

[James Regan + 1,776]

8 minutes ago, wrs said:

US stocks are not traded like bitcoin. It's a lot harder to get an account for trading stocks and I don't believe you can do it remotely.  You must fund it with an actual bank account and not a credit card.  You must provide REALID and SS to trade.  No amount of bots could do the buying you suggest.

You need a social security and healthy background check, I tried and got knocked back even having a US bank account for 20 years.

[Douglas Buckland + 6,308]

5 minutes ago, James Regan said:

You need a social security and healthy background check, I tried and got knocked back even having a US bank account for 20 years.

Could have something to do with that wee period of incarceration back in bonny Scotland....just saying...🤔

[James Regan + 1,776]

26 minutes ago, Douglas Buckland said:

Could have something to do with that wee period of incarceration back in bonny Scotland....just saying...🤔

Aye laddie it wisnae ged, it’s a ged fecht for hawf a loaf .....

[Ward Smith + 6,615]

This seems as good a place as any

Quote

When the energy debt is coming due

Of $86 billion in debt that exploration and production companies have to refinance or repay by 2024, only $5.3 billion is due this year, and only $1.7 billion of that is junk. The biggest chunk is due in 2022, at $25.7 billion.

Only 10 companies in the exploration and production sector, the most vulnerable part of the business, account for nearly half of the debt coming due by 2024, Moody's said. The biggest is Occidental Petroleum at $14 billion of its $40 billion in long-term debt. None of it is due this year, though, according to Oxy's Securities and Exchange Commission filings. The company has until 2021 and 2022 to make most of its repay-or-refinance decisions. The debt load is related to Oxy's acquisition last summer of Anadarko Petroleum, which has been criticized and continues to attract activist attention.

From CNBC.

So really not that much debt coming due this year. What that means for the industry? Who knows, but I'm guessing "bailout" means loan restructuring, ie kicking the can down the road. 

[ronwagn + 6,290]

On 3/11/2020 at 9:50 AM, Douglas Buckland said:

The worst thing that Trump could do is bail these guys out!!! They did it to themselves and never, ever made any cuts or anything else to dry up the glut and get the price up. They deserve to fail!

I might normally agree but the shale oil industry is the greatest tool we have in our foreign policy tool box, aside from our armed forces. It provides us with the tool we need to peacefully weaken our enemies and help our friends. Without the oil industry we might all be speaking German or Japanese. Certainly Europe would be speaking German.   

[ronwagn + 6,290]

On 3/10/2020 at 1:58 PM, cbrasher1 said:

they gonna bailout Ford too? we talk about energy sector debt, being on an energy forum, but other companies are strapped as well...

https://www.ccn.com/forget-the-dow-coronavirus-could-send-ford-stock-to-zero/

Ford is not energy sector. 

[ronwagn + 6,290]

On 3/10/2020 at 10:28 PM, surrept33 said:

 

There is something to be said for that, but it wouldn't happen overnight because:

https://www.eia.gov/todayinenergy/detail.php?id=41033

https://www.eia.gov/todayinenergy/detail.php?id=41653

Canada has heavy crude. 

[ronwagn + 6,290]

On 3/11/2020 at 3:29 PM, surrept33 said:

Oil industry push for Trump bailout draws political headwinds

https://www.politico.com/news/2020/03/11/oil-bailout-trump-125949

 

 

Gasoline for 2$ per gallon at the pump will make the public very happy, and they will not mind helping out the industry that allows them the to drive anywhere they want. It will help the economy to restart. It will also allow the industry to resolve its problems as the prices increase. We have to avoid importing OPEC and Russian oil. This is an opportunity to crush them as they try to crush our oil industry. They tried it before and lost. We do not need their oil.  

[Ward Smith + 6,615]

And there it is. Trump has followed my advice and will be filling the SPR effective immediately! 

Thanks Donald! 

[wrs + 893]

Finally, something for my taxes.  

[0R0 + 6,251]

On 3/11/2020 at 10:50 AM, Douglas Buckland said:

The worst thing that Trump could do is bail these guys out!!! They did it to themselves and never, ever made any cuts or anything else to dry up the glut and get the price up. They deserve to fail!

Trump should be using this opportunity to fill up the SPR. If Saudi is true to form, it will drive new production projects off the drawing board (Russia's in particular as they have been aggressive in planning production expansion) and then they will cut production and serve up the market with shot glasses rather than full up tankers. 

The SPR would be able to stabilize supplies after drillers back up. 

[Wombat + 1,028]

On 3/11/2020 at 5:57 AM, 0R0 said:

The Fed should be liquifying the credit markets to avoid further breakdowns - we had a 9 day breakdown of investment grade issuance before the Fed announced cuts last week, junk credit is still distressed with no issues. In end 2018 the Fed had gotten so tight that there were no issues for 41 days in the junk category and a full week with no investment grade issues. Similar investment grade issue problems were in evidence prior to the start of the Fed rate cuts last summer. 

The Fed is woefully behind the curve. It keeps ignoring the heavy liquidity demand coming out of the Eurodollar system and ignores the treasury curve signaling deflation and market demand for deeply negative real yields. The Eurodollar system is funding trade and investment globally and is stretched by credit demand for delayed supply chain deliveries and thus payments, and by China and HK banks seeking extra liquidity in the Eurodollar market in the aftermath of the China banking fiasco. Where the interbank China repo market was in disarray for 6 months last year with 20% overnight rates. The Bail In policy at Baoshang bank's collapse is forcing Chinese institutional depositors out of the banks and into the bond markets to hold their cash. Part of what they are doing is holding dollar money market paper in the Eurodollar market and in HK, and China multinationals accumulating more offshore held US treasuries and using them for cash via the dollar repo markets in the Eurodollar system and the Eurodollar system in turn provides cash by repo and swaps in the US money markets.

Thus the Fed has to deal with not only the liquidity demand of the US, but that of Europe (with similar bail in policy) and of China, which is far more heavily monetized and financialized system than any other. The Fed's response has been creaky and oblivious. Powell reacting only when things actually break down in Repo or credit markets in the US right in front of his nose. 

 

Oro, u need to remember that Fed is a "geo-political animal" and does not necessarily share your concerns for the global economy. In their eyes "you should never waste a good crises"?

[El Nikko + 2,145]

2 hours ago, Ward Smith said:

And there it is. Trump has followed my advice and will be filling the SPR effective immediately! 

Thanks Donald! 

I knew he posted on here!

[Wombat + 1,028]

On 3/11/2020 at 6:29 AM, Dan Clemmensen said:

Thanks for your answer. I knew the SPR segregates sour from sweet (roughly 2/3 sour, 1/3 sweet) and that it can handle 4.4 Mbbl/day input or output. I do not know the actual details of input and output, nor of blending and quality. However, if the SPR were ever needed for its original purpose, there would be a need to actually extract and process that oil, so surely the industry has a way to do that? Basically, if Saudi Arabia wants to "flood the market" by hiring a bunch of VLCCs, wouldn't it be nice to just buy that oil on the cheap and store it?

Yes, and the method of extracting the oil is very simple. The simply pump water into the bottom of the pits and the oil floats to the surface. This is what they have been doing the last few years as the SPR has been sold off. Time to refill it!

[Wombat + 1,028]

On 3/12/2020 at 10:00 AM, George8944 said:

Sorry,  protecting your business is not a Constitutional right, nor is it something I think tax payers should have to burden.    All rewards have their risks.

Are u saying that businesses do not pay tax?

[Douglas Buckland + 6,308]

2 hours ago, El Nikko said:

I knew he posted on here!

And just how long would the SPR last at the US useage levels peior to the recent corona virus scare and pissing contest between Russia and Saudi?