Jump to content
economy

Daily Economy Thread

Featured Posts

Economy   Paws Up 7,023
Economy
3 minutes ago, Woolfsmck said:

Yepper, US shale is helping regulate and balance the oil markets.

Bad news for those stocks in the red i have with Cenovus. 

 

I bought a sh*t load at the recent collapse to $14/share ($4000 worth) but will only rebound with oil recovery

  • Like 1
jesse_batista

Share


Link to post
Share on other sites
Woolfsmck   Paws Up 723
Woolfsmck
Just now, Economy said:

Bad news for those stocks in the red i have with Cenovus. 

 

I bought a sh*t load at the recent collapse to $14/share ($4000 worth) but will only rebound with oil recovery

Oil is political now and strategic...Normal supply and demand influence is greatly exajerated by non-economic events.

The North Korea issue shouldn't matter to the oil market, but it will have an impact if the conflict escalates

  • Like 1
like a cat in a sil, I watch life, moving&still, proceed across my face, I leave no trace.My words give a clue,look inside to see whats true

Share


Link to post
Share on other sites
Economy   Paws Up 7,023
Economy
Just now, Woolfsmck said:

Oil is political now and strategic...Normal supply and demand influence is greatly exajerated by non-economic events.

The North Korea issue shouldn't matter to the oil market, but it will have an impact if the conflict escalates

Yeah...

 

However US Shale does have one dynamic agaisnt it...

 

Cost of production changes wildly depending on growth or contraction

 

There is already cost inflation setting in in the permian as land prices skyrocket, labor costs rise due to shortage, and service companies that supply equipment are starting to raise prices again

 

This year price inflation for shale is expected to be moderate. Next year if industry remains in growth mode they expect cost inflation to eccelerate especially in the permian

 

That could put an eventual slow down in shale growth. Though it would still grow at least 200,000 to 400,000 barrels a day in a period of a year if prices remained above $50 i think

jesse_batista

Share


Link to post
Share on other sites
phantasmas   Paws Up 851
phantasmas

i came into this thread for the first time rn and im just like...

tenor.gif

yall do this for fun?

  • Like 1

Share


Link to post
Share on other sites
Economy   Paws Up 7,023
Economy
On 2017-05-23 at 1:04 AM, phantasmas said:

i came into this thread for the first time rn and im just like...

tenor.gif

yall do this for fun?

Economics is a passion of mine ☺️

jesse_batista

Share


Link to post
Share on other sites
Economy   Paws Up 7,023
Economy
18 hours ago, Janbee said:

I was starting to think I would never hear bad news out of North Dakota 

----------------------------------------------------------------------------------------------------------------------------------------------------

 noi that o to |  do choi o to |  do choi xe hoi 

Oh what happened there? I been so busy lately that some headlines have escaped me 👀

jesse_batista

Share


Link to post
Share on other sites
Woolfsmck   Paws Up 723
Woolfsmck
10 hours ago, Economy said:

Oh what happened there? I been so busy lately that some headlines have escaped me 👀

Don't nuthn' happen in North Dakota man....8-/

like a cat in a sil, I watch life, moving&still, proceed across my face, I leave no trace.My words give a clue,look inside to see whats true

Share


Link to post
Share on other sites
Economy   Paws Up 7,023
Economy
11 hours ago, Woolfsmck said:

Don't nuthn' happen in North Dakota man....8-/

Isnt that where ur from? Or was it Montana?

jesse_batista

Share


Link to post
Share on other sites
Woolfsmck   Paws Up 723
Woolfsmck
15 hours ago, Economy said:

Isnt that where ur from? Or was it Montana?

I live (when I get there) in Montana , right near the ND border...yep

like a cat in a sil, I watch life, moving&still, proceed across my face, I leave no trace.My words give a clue,look inside to see whats true

Share


Link to post
Share on other sites
Economy   Paws Up 7,023
Economy
1 hour ago, Woolfsmck said:

I live (when I get there) in Montana , right near the ND border...yep

Haha ok, my momory is not as bad as i thought xD

jesse_batista

Share


Link to post
Share on other sites
Economy   Paws Up 7,023
Economy

Canadian Oil Down to $30/Barrel while US WTI is at almost $60/barrel and Brent at $65 Barrel as a result of competing for inssufficient pipeline and train shipping space :koons: 

 

@Woolfsmck once again pipeline politics getting on my nervers

 

At almost 5M barrels a day of production a $30/barrel discount is $54.75 Billion lost end of year :koons: 

 

https://www.bnn.ca/wti-hovers-near-2015-high-as-canadian-oil-discount-persists-1.952997

Edited by Economy
jesse_batista

Share


Link to post
Share on other sites
Woolfsmck   Paws Up 723
Woolfsmck

I don't know if the discount is really a loss to Canada.  Lost potential revenue is a better term.   Loss would be calculated by production and distribution expenses deducted from sales.   

I agree that snags in delivery are an unnecessary problem tho.

like a cat in a sil, I watch life, moving&still, proceed across my face, I leave no trace.My words give a clue,look inside to see whats true

Share


Link to post
Share on other sites
Economy   Paws Up 7,023
Economy
5 hours ago, Woolfsmck said:

I don't know if the discount is really a loss to Canada.  Lost potential revenue is a better term.   Loss would be calculated by production and distribution expenses deducted from sales.   

I agree that snags in delivery are an unnecessary problem tho.

Well, $30/barrel is enough to cover operating costs for most companies but not enough to cover full cycle costs...

 

Fortunately these companies have up to 50 years to average out a better price per each project 👀

 

I feel like until the US reaches its full production capacity investment in Canadas Oil Sands will be diminished tho

 

Nobody wants to pay $3 Billion to $10 Billion setting up a project that takes 5-7 years to start up...

 

when in the meantime in US Shale  for $12 Million (about 2% of cost) you can frack a well and start flowing oil within just a few months :rip: 

 

Once the last projects come online in 2020 Canadas production will probably stay flat on existing fields for at least a decade (excluding a bit of shale we also have) 👀

jesse_batista

Share


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now


×