Rigs Down

[Marina Schwarz + 1,576]

Oil explorers dialed back on drilling at the fastest pace in 2 1/2 years in U.S. fields as volatile crude prices crippled efforts to plan for growth. From here.

Like @Tom Kirkman, I , too, have questioned the resilience of U.S. shale in the face of price challenges. I doubt any industry reliant on debt financing is very resilient to such challenges. But it's good they are being cautious with growth plans. That's one very important lesson learned. Could lead to greater price volatility resilience.

[Tom Kirkman + 8,860]

Thanks @Marina Schwarz  we seem to be on a similar page here.

 ... how soon until U.S. Shale Oil production starts declining due to lower WTI prices.  Should already be in progress, near as I can deduce.  I'm just waiting for the news to start reporting the production decline. 

Also, sub - $50 WTI should choke off excess U.S. Shale Oil production pretty darn quick, as well as severely curtail new drilling for shale oil, which would further reduce future production.  Should know more by end of this month.

[tsxman + 2]

Schulmberger says revenue in Q4 is down 15% at least, OIH etf is at an all-time low.

Something tells me U.S. growth estimates are going to miss BIG.

 

 

[Dan Warnick + 6,100]

On 12/10/2018 at 1:55 PM, Marina Schwarz said:

Oil explorers dialed back on drilling at the fastest pace in 2 1/2 years in U.S. fields as volatile crude prices crippled efforts to plan for growth. From here.

Like @Tom Kirkman, I , too, have questioned the resilience of U.S. shale in the face of price challenges. I doubt any industry reliant on debt financing is very resilient to such challenges. But it's good they are being cautious with growth plans. That's one very important lesson learned. Could lead to greater price volatility resilience.

Don't discount the effect of expensive credit in this credit reliant venture.  Every time the Fed increases interest rates it means much higher costs are hitting the debt servicing, and obtaining further credit will get harder and harder to come by.

[Bhimsen Pachawry + 72]

1 hour ago, Dan Warnick said:

Don't discount the effect of expensive credit in this credit reliant venture.  Every time the Fed increases interest rates it means much higher costs are hitting the debt servicing, and obtaining further credit will get harder and harder to come by.

Oil prices will Spike after Indian election of 2019. Thereis no speculation here. Oil price is political and will remain so. One must never deal with political tools in terms of money

Edited December 12, 2018 by Bhimsen Pachawry