$20 Barrel Oil?

[HiTempguy1]

Just popped on over to Bloomberg, down to $34/barrel (I type as I sit at CNRL).

January is going to be brutal!

[killramos]

CNRL monitors web usage heavily. Be careful what you type!

[sputnik]

The race to the bottom.

[ExtraSlow]

I'm much less interested with a daily oil price than value of futures contracts. And in many ways, to be honest, the more brutal the next couple of months are, the better. Fuck, lets go to $5 per barrel, It's my opinion that it would only help me, longer term.

[KO22]

Originally posted by killramos
CNRL monitors web usage heavily. Be careful what you type!

[HiTempguy1]

Originally posted by killramos
CNRL monitors web usage heavily. Be careful what you type!

First, not posting on their network :p Second, not commenting about CNRL, so I think I am ok. Third:


» Click image for larger version

[HiTempguy1]

Originally posted by ExtraSlow
I'm much less interested with a daily oil price than value of futures contracts. And in many ways, to be honest, the more brutal the next couple of months are, the better. Fuck, lets go to $5 per barrel, It's my opinion that it would only help me, longer term.

My main concern with this line of thinking is that one little itty-bitty drop in output anywhere in the world could cause HUGE spikes.

I guess that would be a good thing for us, but I really don't mind the more relaxed pace everything is operating at right now. If it helped it get back to 70/80 per barrel and stay there, I'm all for it. Oil companies have definitely gotta lean themselves out a bit even still.

[pheoxs]

I still think Alberta is going to be priced out of the market when we get out of this.

Everyone keeps talking about Saudi vs USA not being able to sustain 40$ (or less now) oil. But the reality is, how long can Alberta sustain it? Our oil is already sold at a discount (we're already in the $20's right now) and is more expensive operations wise to continue.

It costs more to pull a barrel of oil out of the oil sands than it does elsewhere, and its sold at a discount. I hate to say it but I see Alberta being the player than loses its production as supply and demands finds its new equilibrium.

[riander5]

Originally posted by pheoxs
I still think Alberta is going to be priced out of the market when we get out of this.

Everyone keeps talking about Saudi vs USA not being able to sustain 40$ (or less now) oil. But the reality is, how long can Alberta sustain it? Our oil is already sold at a discount (we're already in the $20's right now) and is more expensive operations wise to continue.

It costs more to pull a barrel of oil out of the oil sands than it does elsewhere, and its sold at a discount. I hate to say it but I see Alberta being the player than loses its production as supply and demands finds its new equilibrium.

Oil sands are already developed and capital costs sunk now. Also Alberta and Sask still have quite a few extremely profitable plays that can compete with US

[vengie]

Started from the (previous) bottom now we're here!

[ExtraSlow]

Originally posted by pheoxs
I still think Alberta is going to be priced out of the market when we get out of this.

Everyone keeps talking about Saudi vs USA not being able to sustain 40$ (or less now) oil. But the reality is, how long can Alberta sustain it? Our oil is already sold at a discount (we're already in the $20's right now) and is more expensive operations wise to continue.

It costs more to pull a barrel of oil out of the oil sands than it does elsewhere, and its sold at a discount. I hate to say it but I see Alberta being the player than loses its production as supply and demands finds its new equilibrium.

You could be right that there may never be another greenfield oilsands project built. However, just running the existing projects and making incremental additions to them can be profitable at extremely low prices.

[Sugarphreak]

...

[Mitsu3000gt]

My hope was for a worse short-term pain (and a faster recovery) and not as drawn out as it has been, but it's looking petty grim on the price horizon

[Xtrema]

Originally posted by Sugarphreak
Albert's biggest expense was labour, with all of the layoffs and strong competition for work, we can still be very profitable.

Not to mention 60 cent dollar. All of a sudden everyone's wages looks a lot better than before. It's just that inflation means everyone took a 30% pay cut.

[suntan]

What I can't make $300K driving a truck anymore?

[ZenOps]

Natgas is hurting bad, $1.79 US.

http://www.eia.gov/naturalgas/weekly/

If that chart is correct, in the last five years production has gone up from 57 to 77 billion cubic feet per day.

[phreezee]

Up 3% today on inventory news: http://www.cnbc.com/2015/12/21/us-cr...er-demand.html

[max_boost]

$95 by the year 2040 though. Let's bump this in 24 years.

[HiTempguy1]

Originally posted by phreezee
Up 3% today on inventory news: http://www.cnbc.com/2015/12/21/us-cr...er-demand.html

Shit son, we're at $38/barrel AND WTI is worth more than Brent now

We'll be rollin in dat $50/barrel oil money in no time!

[Meback]

Can someone explain the significance of WTI being priced over Brent. Just doesnt make sense to me. Does that mean there is more Brent being produced, while supply of WTI has fallen?