was $68 bbl oil, now it's lower, and thread went stupid

[ZenOps]

Someone just shot the price of a barrel of oil. Kicked it full force in the nuts.

Bye bye prosperity, it was nice while it lasted.

[Sugarphreak]

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[r3ccOs]

http://www.oil-price.net/

what are you talking about?

[M.alex]

holy shit it just dropped to $45 now? What's going on today??????????????????????

[BavarianBeast]

Whatttt, I didn't think OPEC met until friday?

It's yanksgiving anyways, only Canadian markets are open right now.

[lasimmon]

nm

[-relk-]

Originally posted by r3ccOs
http://www.oil-price.net/

what are you talking about?

I don't think that site is right, West Texas Crude is at 68.93 on WebBroker for me right now.

How do you guys think this drop will affect Calgary? See some layoffs, drop in real estate?

[CapnCrunch]

Originally posted by -relk-

I don't think that site is right, West Texas Crude is at 68.93 on WebBroker for me right now.

How do you guys think this drop will affect Calgary? See some layoffs, drop in real estate?

Probably worst case the same as 2008. So not much.

It really depends on how long it stays down. More than a year and shit might start to happen.

[ExtraSlow]

What's awesome about the price of oil, is that it's a pretty fungible commodity, and that old supply and demand thing really works.

Sure, we see some short term volatility that's due to news papers, but in truth, not very many companies are making long term investment decisions based on the spot price.

So, longer term, the price can't fall that far, as the price of marginal barrels for any of the big producing nations, even the Saudis, is close to or above the current levels.

New oil from the Bakken costs around $70 on a full-cycle basis, I suspect the permian basin is somewhat similar. New oilsands projects aren't particularly profitable until north of $80.

In some ways, six months of low oil prices could actually be very good for us Albertans. A slight delay in some of the new oilsands projects wouldn't be a bad thing from a labour availibilty and cost control standpoint.


We've had beyonders decrying the "high" cost of real estate, so any prolonged slump should be good for those people, as prices will come down. Hell, I made out like a bandit doing a housing upgrade in the depths of Jan 2009. I was considering another upgrade, and if this is prolonged, I'm game.

[01RedDX]

.

[Type_S1]

We are heading into a recession...hold on to your money tightly and have enough to last you 6-12 months no work! I think there will be industry wide layoffs city wide in January. Service, sales and rig guys will be the first to get hit since less activity.

[ExtraSlow]

I'm pretty much always a fiscal optimist.

[A790]

And this is why I'm glad I'm not dependent on O&G to get by.

[pheoxs]

Originally posted by Type_S1
I think there will be industry wide layoffs city wide in January. Service, sales and rig guys will be the first to get hit since less activity.

Don't worry the City of Calgary is adding 500 new jobs!

[403ep3]

There's been some movement where I work

[Sugarphreak]

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[pheoxs]

Originally posted by Sugarphreak


This is what it is like at my work;



....only with a twist; they are making it rain termination notices instead of money

I'm genuinely concerned about our office. Since I started (15 months ago) they've went from 65 people down to 35 people, half from people leaving and not being replaced, other half from people being fired/layoffs/let go.

They haven't hired a single person since me, so I'm still more or less on the bottom of the totem pole, but they seem happy to dump larger responsibilities on me over more senior people so I think I'm reasonably okay, but if it gets any slower I genuinely think there is a chance our business unit will get absorbed into something else or shut down all together.

[Redlyne_mr2]

I don't understand how some of these companies can function, oil drops for a month and they have to lay off people.

[ExtraSlow]

EPCM companies are some of the most vulnerable in these environments. Then field service hands, than anyone who's a consultant to anyone.

[Sugarphreak]

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