• 9 minutes WTI @ 67.50, charts show $62.50 next
  • 11 minutes The EU Loses The Principles On Which It Was Built
  • 19 minutes Batteries Could Be a Small Dotcom-Style Bubble
  • 1 hour Saudi Fund Wants to Take Tesla Private?
  • 48 mins Downloadable 3D Printed Gun Designs, Yay or Nay?
  • 40 mins Rattling With Weapons: Iran Must Develop Military To Guard Against Other Powers
  • 7 hours Permian already crested the productivity bell curve - downward now to Tier 2 geological locations
  • 4 hours Desperate Call or... Erdogan Says Turkey Will Boycott U.S. Electronics
  • 8 hours CO2 Emissions Hit 67-Year Low In USA, As Rest-Of-World Rises
  • 2 hours Corporations Are Buying More Renewables Than Ever
  • 16 hours Starvation, horror in Venezuela
  • 20 hours Are Trump's steel tariffs working? Seems they are!
  • 20 hours Is NAFTA dead? Or near breakthrough?
  • 21 hours China still to keep Iran oil flowing amid U.S. sanctions
  • 18 hours How To Explain 'Truth Isn't Truth' Comment of Rudy Giuliani?
  • 16 hours The Discount Airline Model Is Coming for Europe’s Railways
Alt Text

The $80 Billion Megaproject Splurge In Oil

The growing lineup of megaprojects…

Alt Text

Saudi Crackdown On Canada Could Backfire

The Saudi/Canadian spat that started…

Alt Text

The “Weakest” EIA Report In Years

The EIA’s most recent weekly…

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

Trending Discussions

US Shale Winners And Losers – Part Three

I think that many people are misreading the purpose of this series on $80 oil winners and losers. Most are looking at the most superficial message; as I mention specific companies who run into spend difficulties in a depressed oil environment, they imagine that I’m bashing the companies and telling investors to stay away. Nothing could be further from the truth.

We’ve seen forward-looking CEO’s report this quarter on how lowered margins will trim projected Capex. We’ve heard from companies as well-financed as Hess (HES), which announced an $800m reduction, Conoco Philips (COP) and Rose Resources (ROSE) and particularly Continental Resources (CLR), the best positioned Bakken participant there is.

But understand my point: Spend reductions will lead to production growth reductions, no matter what fantasy world these CEO’s also try to invoke on these conference calls. And as we come to smaller market cap and more specialized oil companies, the fantasies from their conference calls seem to reach Disney-like proportions. Let’s be clear: Production targets missed will further crater these already under pressure stocks, bring out the last ditch revolver credit lines and bond bogeymen – ultimately forcing serious slenderizing of activity and assets in these names.

We need that kind of “oil Darwinism” right now to start to work – not only to stop the breakneck, irresponsible overproduction of US shale assets,…

To read the full article

Please sign up and become a premium OilPrice.com member to gain access to read the full article.

RegisterLogin

Trending Discussions





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