Current Oil Price

[another_exlurker]

This massive slump in oil price is causing some major problems right across the oil industry, pretty much every company is lowering its capex for next year.

Just check out the headlines over at Rigzone.

[kenneal - lagger]

December 10, 2014 BP says it will see growth from conventional and deep-water assets, as well as an increasing contribution from its gas activities, in spite of the current challenging environment. - See more at: http://www.rigzone.com/news/oil_gas/t/6 ... yvZUW.dpuf

So they are going to contribute to the price being low then by increasing production!

[another_exlurker]

The firm said that it is looking to pare or re-phase capital expenditure, pointing out that it already told investors in October that this could result in reductions of between $1 billion and $2 billion in capital spending across the group in 2015. - See more at: http://www.rigzone.com/news/oil_gas/a/1 ... ZIk83.dpuf

They're still cutting capex for next year and they "believe" they will see growth, doesn't mean they actually will.

I wouldn't be too surprised that they're betting on OPEC to cut supply at some point next year. The next scheduled meeting is in June, IIRC.

Then, of course, there's the problems in Libya, Syria/Iraq and The Ukraine that could monumentally bugger up any and all predictions.

[biffvernon]

I wouldn't be too surprised that they're betting on OPEC to cut supply at some point next year.

A poor bet. If OPEC cuts production it cuts both its revenue and it market share. There can't be much sense to that. Better to watch the abandonment of unconventionals while sitting out the low prices

[AutomaticEarth]

Looking at the last few days oil prices, it makes you wonder if the oil price is going to hover around the $60 mark for the next 12 months or so.......

[Tarrel]

That's quite a projection, based on just a few days of relative stability.

[another_exlurker]

Here come the tax breaks and subsidies from the taxpayer.

And as if by magic...

The government was urged on Friday to come to the rescue of the North Sea oil industry with further tax cuts that will protect offshore operators from the global oil price slump.

The plea was made by trade union leaders in Aberdeen who also warned that a run down in staffing and maintenance spending could endanger safety on North Sea platforms.

Original article.

[kenneal - lagger]

Fuel at the pumps has been going down 1p per day recently. 118.9p for diesel here in Newbury and we're usually 3 or 4p more expensive than everywhere else as we're so rich, apparently!

[AutomaticEarth]

That's quite a projection, based on just a few days of relative stability.

Not so much a projection - was just pointing out that prices seemed to have levelled out around $60 for now.

[3rdRock]

http://rt.com/news/216083-oil-us-morales-bolivia/

The US is behind the current drop in oil prices – Bolivia’s president

Morales said that it’s was “a pity” that Washington remains on a “wrong course” by continuing to use sanctions against its political rivals.

“[The US thinks] we are living 200, 300 or 500 years ago, instead of today. But all the past should remain in the past. The US should realize this,” he told RT’s Spanish channel.

America is acting like other large empires did for centuries as they “disseminated strife and hatred inside and outside, wishing to establish political control over other nations and to plunder them economically,” Morales said, in an apparent reference to the Spanish conquistadors’ invasions of Latin America.

The Bolivian president also slammed Europe for being “US accomplices” in implementing sanctions worldwide.

Love the wig Evo.

[3rdRock]

http://www.theguardian.com/business/201 ... ing-prices

Saudi and UAE oil ministers defend Opec response to falling prices

Both countries reaffirm commitment to maintaining current production levels despite price slump and glut in supplies

[kenneal - lagger]

Holger Schmieding and Christian Schulz at Berenberg Bank argued last week that cheap oil was a “game-changer”, with the benefits far outweighing the disadvantages.

“If oil prices remain close to current levels, the western world and many emerging markets can look forward to benefiting from a big de facto tax cut. Even better, the tax cut will be paid for by Russia and the Middle East.”

These commentators just don't get it, do they. We might have cheap oil prices for maybe a year or two, if we're lucky, but then the price will rocket, as production reduces with no new assets coming on line to replace depleted production, and put us all back into recession again. It will be 2008 all over again. That might even happen sooner than a year or two if the US Frackcos start going bust and bring the banks down with them.

I don't know how these banks can get away with putting Frackcos debt into CDOs and selling them on with a good credit rating. Either the rating companies are conning people or the banks are or, more likely, both. It's out and out fraud. The bankers who buy the things must be pretty thick as well if they can't see that they are buying into a bubble.

[Little John]

As long as the music plays, each of them must dance or their shareholders will punish them. The market is blind.

[biffvernon]

Either the rating companies are conning people or the banks are or, more likely, both. It's out and out fraud.

They have form.

[raspberry-blower]

The market is rigged.

There - fixed it for you