• 4 minutes Natural gas is crushing wind and solar power
  • 7 minutes OPEC and Russia could discuss emergency cuts
  • 10 minutes Peak Shale Will Send Oil Prices Sky High
  • 13 minutes Don't sneeze. Coronavirus is a threat to oil markets and global economies
  • 8 mins On Venezuela
  • 2 hours CCP holding back virus data . . . . . . Spanish Flu 1918 MUTATED, Came in 3 waves, Lasted 14 months and killed upward 5% World population
  • 1 hour "Criticism of migration will become a criminal offense.  And media outlets that give room to criticism of migration, can be shut down." - EU Official to the Media.
  • 1 day Cheap natural gas is making it very hard to go green
  • 5 hours The Great Recession recovery wasn't powered by Obama; it was oil and gas
  • 7 hours Gold.
  • 21 mins WTI are we seeing the perfect storm
  • 10 hours Engineering, Politics and Political Correctness from Down Under
  • 20 hours I Love Hills
  • 1 day Oil and gas producers fire back at Democratic presidential candidates.
  • 5 hours So the west is winning, is it? Only if you’re a delusional Trump toady, Mr Pompeo, by Simon Tisdall
  • 1 day Investments worthy in versatile and clean natural gas
Dan Dicker

Dan Dicker

Dan Dicker is a 25 year veteran of the New York Mercantile Exchange where he traded crude oil, natural gas, unleaded gasoline and heating oil…

More Info

Deepwater Looks Shaky In 2016

Is it over yet? 2015 will certainly go down as the worst year for energy stocks since 2008 – that is unless 2016 beats it for misery. Looking at certain sub-sectors, like off-shore drilling, 2016 could unbelievably make 2015 look tame.

We always knew that the bust cycle in oil prices was going to bring a lot of bad times for energy stocks – but no one imagined such carnage, even among the strongest names. I have been focusing on what I have called 'the survivors' and trying to find value in the shares of names like EOG Resources (EOG), Cimarex (XEC) and Hess (HES). With off-shore drillers, I've imagined even more awful times ahead, but took a speculative shot with Seadrill (SDRL), looking down the road two years at the inevitable rebound in deepwater drilling.

But the resilience of many of the unconventional drillers has unexpectedly extended the timeline in this oil bust cycle, catching me by surprise. We're operating inside this insane Catch-22: Oil prices can't get constructive until the U.S. and other non-OPEC producers start to trim their outputs, yet oil companies continue to use efficiency gains and top line spending cuts to stay in the game and maintain production. Oil prices stay low, and drift lower. 2016 will not be happy, at least for the first several quarters.

It gets worse: Oil companies have pushed their debt deftly down the curve, with only a tiny number of high-yielding issues coming due and requiring refinancing this coming…




Oilprice - The No. 1 Source for Oil & Energy News