• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 2 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 4 days Does Toyota Know Something That We Don’t?
  • 4 days World could get rid of Putin and Russia but nobody is bold enough
  • 7 hours America should go after China but it should be done in a wise way.
  • 7 days OPINION: Putin’s Genocidal Myth A scholarly treatise on the thousands of years of Ukrainian history. RCW
  • 6 days China is using Chinese Names of Cities on their Border with Russia.
  • 7 days Russian Officials Voice Concerns About Chinese-Funded Rail Line
  • 7 days CHINA Economy IMPLODING - Fastest Price Fall in 14 Years & Stock Market Crashes to 5 Year Low
  • 6 days CHINA Economy Disaster - Employee Shortages, Retirement Age, Birth Rate & Ageing Population
  • 7 days Putin and Xi Bet on the Global South
  • 7 days "(Another) Putin Critic 'Falls' Out Of Window, Dies"
  • 8 days United States LNG Exports Reach Third Place
  • 8 days Biden's $2 trillion Plan for Insfrastructure and Jobs
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

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,…




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News