• 4 minutes US-backed coup in Venezuela not so smooth
  • 7 minutes Why Trump will win the wall fight
  • 11 minutes Oil imports by countries
  • 13 minutes Maduro Asks OPEC For Help Against U.S. Sanctions
  • 17 hours Climate Change: A Summer of Storms and Smog Is Coming
  • 16 hours Tension On The Edge: Pakistan Urges U.N. To Intervene Over Kashmir Tension With India
  • 16 hours The Quick Read On MBS's Tour of Pakistan, India And China
  • 15 hours Teens For Climate: Swedish Student Leader Wins EU Pledge To Spend Billions On Climate
  • 16 hours BMW to add 2,000 more jobs at Dingolfing plant
  • 17 hours Iran Starts Gulf War Games, To Test Submarine-Launched Missiles
  • 18 hours Venezuela: Nicolas Maduro closes border with Brazil
  • 1 day Amazon’s Exit Could Scare Off Tech Companies From New York
  • 1 day Itt looks like natural gas may be at its lowest price ever.
  • 19 hours Saudi A to Splash $100 Bln on India
  • 12 hours Washington Eyes Crackdown On OPEC
  • 14 hours Indian Oil Signs First Annual Deal For U.S. OilIndian Oil Signs First Annual Deal For U.S. Oil
  • 1 day NEW FERUKA REFINERY
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

The Key To Profiting In A Volatile Oil Market

Oil

Yesterday’s quarterly report from Conoco-Philips (COP) is showing a renewed trend among oil companies, mirroring the report of Anadarko Petroleum (APC) a few days earlier. Both are reporting negative earnings while cutting capex for the remainder of 2017. Capex cuts were epidemic in 2015 and 2016, as oil companies reeled from cratering oil prices. But 2017 was signaled by most oil companies as a green light year, where they chose to again increase capex in hopes that the bust cycle for oil was ending.

It hasn’t turned out that way.

And while capex adjustments from oil companies have very few immediate effects on production, earnings and oil prices, they have a very definite and clear effect on them in the longer term.

Now would be a good time to talk about that longer term and the opportunity it will present, now that several oil companies, and likely most of the others yet to report, will continue this capital expenditure slashing for the rest of 2017. It is a pillar of my long-term thesis of oil prices again breaching $100 a barrel and even making new historic highs.

Oil’s latest bust cycle, which has brought prices well below $70 a barrel for much of the last three years has delivered two difficulties to oil companies: First, it has made much of their current production unprofitable, or only marginally so – witness the stream of losses that continue to swamp oil companies.

But second, it has absolutely decimated the…

To read the full article

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

RegisterLogin



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