Broke 60

Gonna be a long winter...

Halliburton just announced 1000 employees would be cut in the Eastern Hemisphere, effective immediately due to the market changes.

Hearing/reading alot of chatter about significant credit events if crude goes below $60.

Any realistic chances of this?

Getting painful to watch. There is no floor, and there is no reason for it to go up. I wonder what will happen to stock prices once companies start coming out with lower earnings and lower forward guidance. Another 40% haircut on stocks?

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Hearing/reading alot of chatter about significant credit events if crude goes below $60.

Any realistic chances of this?

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I think we will see a lot of distressed companies in the next 6 to 12 months because they can no longer meet their debt obligations from cash flow from operations. Specifically highly leveraged US Shale players.

Energy fundamentals did not change by 40% in the past few months. This is temporary. Lots of opportunity in equities. Hopefully opportunity in A&D market upcoming.

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Energy fundamentals did not change by 40% in the past few months. This is temporary. Lots of opportunity in equities. Hopefully opportunity in A&D market upcoming.

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If crude can sink so fast upon a decision by OPEC, then fundamentals weren't a driving part of crude being at $90-100/bbl.

Oilfield services giant Halliburton is reportedly preparing to take a $75 million charge related to staff reductions stemming from the proposed mega-merger with rival Baker Hughes.

"We are right now anticipating a restructuring charge in the (fourth) quarter, probably to the tune of about $75 million as we trim out some head count and activities around the world," Reuters quoted chief financial officer Mark McCollum as saying at Capital One's annual energy conference on Thursday.

McCollum has been named Halliburton's chief integration officer, effective 1 January. He will oversee the combination of the two companies' operations following the $35 billion merger announced last month.
Further details about the planned staff cuts were not immediately available.

Services companies are seen to be in a vulnerable position in an industry stricken with low oil prices and cagey operators looking to cut costs.

Schlumberger, currently the world's top services company, recently said that it is also planning to cut an unspecified number of staff that will result in a pre-tax impairment of around $200 million.

Oil<$59

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Energy fundamentals did not change by 40% in the past few months. This is temporary. Lots of opportunity in equities. Hopefully opportunity in A&D market upcoming.

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Most crude fundies have indicated a decent overprice in the market for a long time as well.

The drop in price isn't really a shocker per se... it was really a matter of time.

NM, other thread

Going to be another ugly day gents.

Global oil supply is set to build further next year as demand falters, putting further downward pressure on oil prices that have already plummeted by more than 40%, according to the International Energy Agency (IEA).

Releasing its monthly oil market report on Friday, the Paris-based agency said it was too early to expect low oil prices to start seriously curtailing the North American supply boom that has led to a global glut.
"Barring a disorderly production response, it may well take some time for supply and demand to respond to the price rout," the IEA stated, adding expected healthy non-Opec supply gains would aggravate the oversupply situation.

The agency, which co-ordinates energy policies of industrialised countries, cut its outlook for global oil demand growth for 2015 by 230,000 barrels per day to 0.9 million bpd on expectations for lower fuel consumption in Russia and other oil-exporting countries.

Oil prices have been in steep decline since June due to slow demand growth and a North American shale oil boom.

The sell-off gained pace after producers' group Opec decided last month to keep its output target unchanged to fight for market share with rival producers.

Global crude oil benchmark Brent was trading on Friday at a five-year low around $63 per barrel, down more than 40% from June, and fell further on publication of the IEA report .

Surging US light tight oil supply will push total non-Opec production to record growth of 1.9 million bpd this year, although the pace of growth is expected to slow to 1.3 million bpd in 2015, the IEA said.

Given lower estimates of global demand growth, the IEA said it had revised its predictions for demand for oil from Opec for 2015 down by 300,000 bpd to 28.9 million bpd - more than 1 million bpd below the group's current production.

Demand for Opec oil will bottom out seasonally in the first quarter of 2015, leading to a large build-up in stocks.

The IEA said that, based on current projections of still relatively weak demand growth and robust supply, global oil inventories would build by close to 300 million barrels in the first half of 2015 in the absence of disruption, shut-ins or cut in Opec production.

The agency said several years of record high prices, when oil traded at above $100 per barrel, were the root cause of the current price rout, as well as a surge in non-Opec supply to its highest growth ever and a contraction in demand growth.

It said lower oil prices were already slashing producers' spending, but it was more likely to affect medium- and long-term output than short-term supplies."Today's oil spending cuts will dent supply - just not right now," it stated.

The short-term outlook for US light tight oil production remained unchanged at current prices, it said, as long as producers had access to financing.

It added that in 2015 only Russia would likely trim production as lower oil prices were causing pain alongside Western sanctions.

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Going to be another ugly day gents.

Global oil supply is set to build further next year as demand falters, putting further downward pressure on oil prices that have already plummeted by more than 40%, according to the International Energy Agency (IEA).

Releasing its monthly oil market report on Friday, the Paris-based agency said it was too early to expect low oil prices to start seriously curtailing the North American supply boom that has led to a global glut.
"Barring a disorderly production response, it may well take some time for supply and demand to respond to the price rout," the IEA stated, adding expected healthy non-Opec supply gains would aggravate the oversupply situation.

The agency, which co-ordinates energy policies of industrialised countries, cut its outlook for global oil demand growth for 2015 by 230,000 barrels per day to 0.9 million bpd on expectations for lower fuel consumption in Russia and other oil-exporting countries.

Oil prices have been in steep decline since June due to slow demand growth and a North American shale oil boom.

The sell-off gained pace after producers' group Opec decided last month to keep its output target unchanged to fight for market share with rival producers.

Global crude oil benchmark Brent was trading on Friday at a five-year low around $63 per barrel, down more than 40% from June, and fell further on publication of the IEA report .

Surging US light tight oil supply will push total non-Opec production to record growth of 1.9 million bpd this year, although the pace of growth is expected to slow to 1.3 million bpd in 2015, the IEA said.

Given lower estimates of global demand growth, the IEA said it had revised its predictions for demand for oil from Opec for 2015 down by 300,000 bpd to 28.9 million bpd - more than 1 million bpd below the group's current production.

Demand for Opec oil will bottom out seasonally in the first quarter of 2015, leading to a large build-up in stocks.

The IEA said that, based on current projections of still relatively weak demand growth and robust supply, global oil inventories would build by close to 300 million barrels in the first half of 2015 in the absence of disruption, shut-ins or cut in Opec production.

The agency said several years of record high prices, when oil traded at above $100 per barrel, were the root cause of the current price rout, as well as a surge in non-Opec supply to its highest growth ever and a contraction in demand growth.

It said lower oil prices were already slashing producers' spending, but it was more likely to affect medium- and long-term output than short-term supplies."Today's oil spending cuts will dent supply - just not right now," it stated.

The short-term outlook for US light tight oil production remained unchanged at current prices, it said, as long as producers had access to financing.

It added that in 2015 only Russia would likely trim production as lower oil prices were causing pain alongside Western sanctions.

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Yup. Not a surprise given the facts. $55 here we come. If it stays above $58.56 then it will have solidified above a key technical. If it breaks $58,l.56 the next stop is ~$55 and then $51.25

What do you mean by "key technical"?

I wouldn't be too worried about any technicals at this point. Pretty much irrelevant in this type of slide.

On a positive note, $1.75 gas by New Years?

WTI will be $58 by the close of trading today.

To be frank, I am more than happy to own the index at $55 than I ever was when oil was $100 + on an evaluation perspective.

My main belief is big boys with lots of cash will be happily buying up reserves, oil fields, you name it on fire sales that will be coming due to total liquidations of companies that are run with high amounts of leverage in debt.

Sorry, long term. I am more than happy to own this sector at these prices and even lower.

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To be frank, I am more than happy to own the index at $55 than I ever was when oil was $100 + on an evaluation perspective.

My main belief is big boys with lots of cash will be happily buying up reserves, oil fields, you name it on fire sales that will be coming due to total liquidations of companies that are run with high amounts of leverage in debt.

Sorry, long term. I am more than happy to own this sector at these prices and even lower.

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HK is loaded with debt. Long term plan was to get bought out anyway. I wonder if that will backfire.

Wall Street Journal - Saudi Arabia's Tank Battle with Shale

EOG holding up well. Was really hoping to pick up some on a flush to the 70s

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EOG holding up well. Was really hoping to pick up some on a flush to the 70s

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Nooooooo!

<58!

CME Floor right now:

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EOG holding up well. Was really hoping to pick up some on a flush to the 70s

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2015 should be interesting. Based on the last press release, we aren't hedged quite as well for next year.

Also looks like investors saw the divestiture of the Canadian acreage as a good thing so we didn't take too big of a hit.

any plans to divest the US midstream assets?

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any plans to divest the US midstream assets?

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No idea. Most of us get the same info at the same time the public does.

have 2 friends that recently moved up to denver with eog

T Boone says OPEC will have to cut here eventually and soon.. believes oil will be back to $100 in 12-18 months

http://www.cnbc.com/id/102233663

T. Boone also has a vested interest in oil going back up.

I don't see it recovering that quickly and I don't know many who do. I don't know too many folks who think it stays around the $40-$50 range (if it gets there) that long either, but I don't see how oil doubles in 12-18 months on its own.


Of course, this is barring some geopolitical event, which is always a wildcard.

DUG up 30% since i posted in early October....

why don't I ever listen to myself...doh!

Depends on the midstream asset. Natgas may be a different story than oil. While oil is taking it on the chin, natgas is steady and demand is increasing. Once Cove Point reverses itself to export LNG, you'll see an even bigger increase in demand.

I'd love to read what you guys think of natural gas