There is no ulterior motive amongst the Russians.
Look everyone, rockdoc is a Turnip Trucker.
There is no ulterior motive amongst the Russians.
StarvingLion wrote:There is no ulterior motive amongst the Russians.
Look everyone, rockdoc is a Turnip Trucker.
Will there be a way to keep the incidence of the virus among offshore from coming to light? Can they keep the rigs going, even if everybody has it?wildbourgman wrote:If we have any short sellers here I suggest linking up to some social media with some oilfield folks. Get a roughneck facebook friend.
When the first drill ship that gets shut down and quarantined this will cause severe chaos and severe pain in the offshore drilling space. There you go. I can't say much more than that at this point but I think you'll see drilling companies that will be hurt in a major way..
sparky wrote:.
They can keep the crew working even if they all have the Corona shake ,
just big wads of money is the required treatment of any ailment in the oil patch
I read the situation as the Russians being sick and tired of propping up the price
while US frackers make no effort to limit their output
it sound like "you want free market ??.... have a shovel full of it "
I'm not so sure how this would play in real life since the US fracking industry doesn't really export on the world market
it would bring some investment into question , especially for offshore
Saudis Plan Big Oil Output Hike, Beginning All-Out Price WarSaudi Arabia plans to increase oil output next month, going well above 10 million barrels a day, as the kingdom responds aggressively to the collapse of its OPEC+ alliance with Russia. The world’s largest oil exporter started a price war on Saturday by slashing the prices it sells crude into foreign markets by the most in at least 20 years, offering unprecedented discounts in Europe, the Far East and the U.S. to entice refiners to purchase Saudi crude at the expense of other suppliers.
At the same time, Saudi Arabia has privately told some market participants it could raise production much higher if needed, even going to a record of 12 million barrels a day. With demand being ravaged by the coronavirus outbreak, opening the taps like that would throw oil market into chaos.
Maximum Pain
The shock-and-awe Saudi strategy could be an attempt to impose maximum pain in the quickest possible way to Russia and other producers, in an effort to bring them back to the negotiating table, and then quickly reverse the production surge and start cutting output if a deal is achieved.
The production increase and deep discounts mark a dramatic escalation by Prince Abdulaziz bin Salman, the Saudi oil minister, after his Russian counterpart Alexander Novak rejected an ultimatum on Friday in Vienna at the OPEC+ meeting to join in a collective production cut. After the talks collapsed, Novak said countries were free to pump-at-will from the end of March. “Saudi Arabia is now really going into a full price war,” said Iman Nasseri, managing director for the Middle East at oil consultant FGE.
Record Discounts
With jet-fuel, gasoline and diesel consumption rapidly falling due to the economic impact of the coronavirus outbreak, the energy market now faces a simultaneous supply-and-demand shock.
evilgenius wrote:Will there be a way to keep the incidence of the virus among offshore from coming to light? Can they keep the rigs going, even if everybody has it?wildbourgman wrote:If we have any short sellers here I suggest linking up to some social media with some oilfield folks. Get a roughneck facebook friend.
When the first drill ship that gets shut down and quarantined this will cause severe chaos and severe pain in the offshore drilling space. There you go. I can't say much more than that at this point but I think you'll see drilling companies that will be hurt in a major way..
onlooker wrote:Crude oil down almost 20% . Holy cow
https://www.theglobeandmail.com/investi ... ties/CL*0/
......Soo , what will be the net result of crude oil priced at 20$
shortonoil wrote:......Soo , what will be the net result of crude oil priced at 20$
The net result is that now there isn't enough energy remaining to be extracted from a unit of oil to restart the process. The petroleum production process is close to its entropic limit at 84,488 BTU per gallon. The system's "dead state" is near at hand, and it can no longer rid itself of its waste heat. The production and consumption of oil and its products will never again be continually increasing. Oil, and the civilization it has built, and powered will begin to disappear.
sparky wrote:.
......Soo , what will be the net result of crude oil priced at 20$
Pops wrote:sparky wrote:.
......Soo , what will be the net result of crude oil priced at 20$
Supply will fall once enough hedges and contracts expire. But then it will fall too low and the price will go back up until it balances demand somewhere around breakeven.
Same as it ever was.
That stuff has been down there millions of years. And it burns just as hot as it did yesterday. It'll still be there in a month or year.
Alfred Tennyson wrote:We are not now that strength which in old days
Moved earth and heaven, that which we are, we are;
One equal temper of heroic hearts,
Made weak by time and fate, but strong in will
To strive, to seek, to find, and not to yield.
The net result is that now there isn't enough energy remaining to be extracted from a unit of oil to restart the process. The petroleum production process is close to its entropic limit at 84,488 BTU per gallon. The system's "dead state" is near at hand, and it can no longer rid itself of its waste heat.
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