Stocks & Oil & All That Fun Stuff

[CertInsaneC5]

Originally Posted by VITE1

It also helps destabilize Saudi Arabia and hurst the American economy.
Plus its payback to the Chinese for supporting the Nuclear deal.

What do you want to bet the Chinese don't see a dime back on their investment?

[NeedSpeed]

Gas under $1

Michigan Becomes First State to Welcome Back Sub-$1 Gas - Story | WJBK

[VITE1]

Originally Posted by CertInsaneC5

What do you want to bet the Chinese don't see a dime back on their investment?

Oil-Thirsty China a Winner in Iran Deal - WSJ

China and Iran's New Love Affair? | The National Interest

https://www.foreignaffairs.com/artic...-sanction-iran

Apparently they are already getting it.

[Giraffe (He/Him)]

So I've been doing a little -OK a lot- of reading on this oil issue and I'm a little confused about something. Saudi Arabia won't cut production because they'll lose market share.

So let's say Jeff, Cybercowboy, VITE1 and myself are all producing oil. Our buyers, Spence, NeedSpeed and Dixie aren't buying our oil because their Prius's all get 100 mpg. But we keep making oil and sticking it in barrels in Jeff's barn. All this oil is just sitting there without any buyers. We all decide maybe we'd better cut production with the exception of Baby-Boomer Fuckwit Jeff who's afraid of losing market share. Market share nobody's buying anyway.

[Jeff '79]

Originally Posted by Thomas

So I've been doing a little -OK a lot- of reading on this oil issue and I'm a little confused about something. Saudi Arabia won't cut production because they'll lose market share.

So let's say Jeff, Cybercowboy, VITE1 and myself are all producing oil. Our buyers, Spence, NeedSpeed and Dixie aren't buying our oil because their Prius's all get 100 mpg. But we keep making oil and sticking it in barrels in Jeff's barn. All this oil is just sitting there without any buyers. We all decide maybe we'd better cut production with the exception of Baby-Boomer Fuckwit Jeff who's afraid of losing market share. Market share nobody's buying anyway.

What's the question...

A barn full of oil?

[Giraffe (He/Him)]

Originally Posted by Jeff '79

What's the question...

A barn full of oil?

Sorry.

What's with the Saudi's? Nobody is buying your shit anyway, why keep making it at great cost to you, and how can you lose market share in a market where nobody is buying anyway?

This shit is complicated. Welding, welding is easy.

[Jeff '79]

Originally Posted by Thomas

Sorry.

What's with the Saudi's? Nobody is buying your shit anyway, why keep making it at great cost to you, and how can you lose market share in a market where nobody is buying anyway?

This shit is complicated. Welding, welding is easy.

I'd rather have a barn full of gold.

[VatorMan]

Originally Posted by Thomas

Sorry.

What's with the Saudi's? Nobody is buying your shit anyway, why keep making it at great cost to you, and how can you lose market share in a market where nobody is buying anyway?

This shit is complicated. Welding, welding is easy.

You are talking about the richest people in the world. They can absorb a few years of losing money when in the end, they will drive all the other guys out of business.

[Stangkiller]

Originally Posted by VatorMan

You are talking about the richest people in the world. They can absorb a few years of losing money when in the end, they will drive all the other guys out of business.

They've successfully shuttered a significant amount of fracking/shale oil in the US, that will take years to restar

[Jeff '79]

Originally Posted by Stangkiller

They've successfully shuttered a significant amount of fracking/shale oil in the US, that will take years to restar

But, what they seem to forget is, it's helping the rest of our oil/ gas/ plastic consuming nation by increasing everyone's disposable income.
Yes, our oil industry is huge but imo the benefit to the nation far outweighs the jobs lost. Many jobs will always, and still exist, in the oil industry here in the US no matter how low oil goes.

[Giraffe (He/Him)]

Originally Posted by Jeff '79

But, what they seem to forget is, it's helping the rest of our oil/ gas/ plastic consuming nation by increasing everyone's disposable income.
Yes, our oil industry is huge but imo the benefit to the nation far outweighs the jobs lost. Many jobs will always, and still exist, in the oil industry here in the US no matter how low oil goes.

There's already been significant job loss over this including several bankruptcy cases. And now I read the banks that financed all this drilling are putting away cash to shore up the fact they're not getting paid back on the loans they made to pay for all this drilling.

[Jeff '79]

Originally Posted by Thomas

There's already been significant job loss over this including several bankruptcy cases. And now I read the banks that financed all this drilling are putting away cash to shore up the fact they're not getting paid back on the loans they made to pay for all this drilling.

That's sounding like the real estate boom & bust.
I wonder if .gov will bail out the oil companies...

[Giraffe (He/Him)]

Originally Posted by Jeff '79

That's sounding like the real estate boom & bust.
I wonder if .gov will bail out the oil companies...

That'd be a hard sell to the American public. 10x harder than the auto industry bailout.

[carlton_fritz]

My RSP dropped more than 6% this year. Over 4% since mid last year. Not enjoying that.

[American Made]

Originally Posted by Thomas

Sorry.

What's with the Saudi's? Nobody is buying your shit anyway, why keep making it at great cost to you, and how can you lose market share in a market where nobody is buying anyway?

This shit is complicated. Welding, welding is easy.

The Saudis have a huge social program debt burden since relatively few are extremely wealthy. Most get assistance from the king. They now have a negative balance sheet for the first time ever. To take care of their citizens they need revenue and are willing to fight the Iranians with low ball pricing since the persians are just happy to get anything to market, even 2 bucks/barrel since they haven't been able to since sanctions. Historically, the Saudis have had the cheapest retrieval costs for oil but have spent a ton in social welfare.

[JRD77VET]

Originally Posted by Stangkiller

They've successfully shuttered a significant amount of fracking/shale oil in the US, that will take years to restar

One advantage of fracking is they well can be capped and restarted when prices prove profitable.

If you cap a conventional oil well, it may or may not pump oil when it's opened back up.


~~~~~~~~~~~~

We do work for a few different oil drilling companies. The "big" one is just getting a few specialty items and the smaller one ( who builds the drilling rigs ) is waiting for money / contracts to start again.

[MrPeabody]

Originally Posted by American Made

The Saudis have a huge social program debt burden since relatively few are extremely wealthy. Most get assistance from the king. They now have a negative balance sheet for the first time ever. To take care of their citizens they need revenue and are willing to fight the Iranians with low ball pricing since the persians are just happy to get anything to market, even 2 bucks/barrel since they haven't been able to since sanctions. Historically, the Saudis have had the cheapest retrieval costs for oil but have spent a ton in social welfare.

One of the best examples in the world of flat out paying people to not overthrow the government.

I suppose the USA ranks pretty high in that area also.

[MrPeabody]

Originally Posted by Thomas

That'd be a hard sell to the American public. 10x harder than the auto industry bailout.

They won't have to sell it to the public. They'll just do it.

[Millenium Vette]

Originally Posted by Thomas

Sorry.

What's with the Saudi's? Nobody is buying your shit anyway, why keep making it at great cost to you, and how can you lose market share in a market where nobody is buying anyway?

This shit is complicated. Welding, welding is easy.

It isn't complicated at all. The Saudis are dicks. They will happily fuck up their own program for a while to try and fuck others in the longer term.

Originally Posted by VatorMan

You are talking about the richest people in the world. They can absorb a few years of losing money when in the end, they will drive all the other guys out of business.

That $$$$$ will go fast with how they spend it.

Originally Posted by American Made

The Saudis have a huge social program debt burden since relatively few are extremely wealthy. Most get assistance from the king. They now have a negative balance sheet for the first time ever. To take care of their citizens they need revenue and are willing to fight the Iranians with low ball pricing since the persians are just happy to get anything to market, even 2 bucks/barrel since they haven't been able to since sanctions. Historically, the Saudis have had the cheapest retrieval costs for oil but have spent a ton in social welfare.

[Iron Chef]

Originally Posted by Thomas

So let's say Jeff, Cybercowboy, VITE1 and myself are all producing oil.

The four of you would have better luck running the Chicken Ranch.