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Has anyone heard the rumor that Exxon might be looking at Marathon? Could perhaps explain the deep cuts they took

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so Exxon acquisition rumors so far are:

1. BP
2. Marathon

How many independents has Exxon been rumored to be buying now?

Anadarko
EOG
BP (not an independent, but we'll add 'em)
Marathon

Any more? Apache?

I'm not saying I don't believe it, but these rumors come up almost annually.

i beat ya to it

Mine was more extensive.

that's what she said...

Looks to me like oil is going to trade around $50 for awhile, then rise towards $60 by the end of the year. My prior prediction in January had oil bottoming in the low 30's, but I don't see it going below $40 now. And any selloff in the next 30 days due to seasonal factors will be temporary in my opinion.

Starting in June, oil prices are down and the value of the dollar is up. What's the relationship between the 2? I've heard a strong dollar hurts oil prices, but didn't the oil price collapse strengthen the dollar. What are the drivers?

I don't think XOM will buy any large independents. They learned a hard lesson with XTO.

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Starting in June, oil prices are down and the value of the dollar is up. What's the relationship between the 2? I've heard a strong dollar hurts oil prices, but didn't the oil price collapse strengthen the dollar. What are the drivers?

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The drivers of a strong dollar are more about worldwide demand for all goods/services and fiscal policy than oil events. But your first point is right, if the dollar is more valuable than other worldwide currencies, all commodities, not just oil, will be cheaper to those of us with dollars, versus those people with other currencies.

The dollar is strong because we hit the pause button on QE infinity, while nearly every other major currency has experienced more stimulus/QE since our hitting the pause button.

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How many independents has Exxon been rumored to be buying now?

Anadarko
EOG
BP (not an independent, but we'll add 'em)
Marathon

Any more? Apache?

I'm not saying I don't believe it, but these rumors come up almost annually.

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I think the problem with a major buying a large independent deals a lot with their assets. Why else would XOM buy an independent? They have to be in love with most of the assets the independent would bring to XOM. Otherwise XOM buys XYZ co and then they have to turn around and divest 1/2 of the assets which takes time and money.

Just got the official word today, I got the axe from cvx. Know several others found out as well.

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just got the official word today, I got the axe from cvx. Know several others found out as well.

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What office/Area do you work?

Was up in PA but I've since moved back to Houston to be closer to family.

Sorry to hear that aw.

I've heard crazy numbers in regards to PDC this spring. And unfortunately a lot of people aren't likely to be around after the cycle is over.

Yup. Numbers were basically flipped from previous years. Only having 18 months experience kinda sealed the deal too... Eligible for there though, maybe when things pick back in I can get back in the game with them.

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Yup. Numbers were basically flipped from previous years. Only having 18 months experience kinda sealed the deal too... Eligible for there though, maybe when things pick back in I can get back in the game with them.

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Sorry to hear that. I've been laid off for a few weeks now too. I haven't really started looking yet.

Anyone need a drilling rig?

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Anyone need a drilling rig?

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The bad word for Aggie is in the url so it won't display the picture. It might be time to get rid of that filter.

From my count that looks like 25 H&P rigs stacked in the yard, and its going to be at least one more when this one I'm on finishes their well here in a few days.

T&P for everyone else going through this.

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Yup. Numbers were basically flipped from previous years. Only having 18 months experience kinda sealed the deal too... Eligible for there though, maybe when things pick back in I can get back in the game with them.

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Ugh. Sorry about that aw08.

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Anyone need a drilling rig?

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I am assuming that is in west Texas. It looks like a drilling rig ghost town.

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Anyone need a drilling rig?

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The bad word for Aggie is in the url so it won't display the picture. It might be time to get rid of that filter.

From my count that looks like 25 H&P rigs stacked in the yard, and its going to be at least one more when this one I'm on finishes their well here in a few days.

T&P for everyone else going through this.

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Anyone need a drilling rig?

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I am assuming that is in west Texas. It looks like a drilling rig ghost town.

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More like the air force bone yard.

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Anyone need a drilling rig?

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I am assuming that is in west Texas. It looks like a drilling rig ghost town.

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On the front page of the Business Section of the Houston Chronicle about a month or two ago there was a picture of the same H&P facility on I20 with about half that many rigs. I travel to Midland a lot and have been watching the stack of rigs grow and that yard is a very telling symbol of what is going on.

All of these major and mid majors (really any public) reserves are massively overstated and subsequently overvalued. Most of the 3rd party reserve engineering groups are part of that particular problem, and senior debt either doesn't know or doesn't care as long as they're paid. Revolvers get smashed when prices collapse, but otherwise, nah. Doesn't take much evidence to book some PUD reserves and once they are on the books they do not come off, even when they start poking dry holes.

While I agree reserves are often overbooked, does it really matter in the long run? If cash flow does not come through, wall street will not care if you hate 1T bbl booked.

Not all reserves are created equally. Aubrey McClendon CHK reserves were never as valuable as XOM reserves. That will show up in the cashflow eventually.

I have no sympathy for H&P, they've consistently been hard to negotiate and deal with. Very proud of their rigs.

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I have no sympathy for H&P, they've consistently been hard to negotiate and deal with. Very proud of their rigs.

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Maybe have some sympathy for the minimum 22 crew members per rig stacked, not to mention other third parties and service companies?

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or the $70k of mud pump expendables they used to buy from good ole SQXVI per month, which is now about 15k

Getting ugly XOM down to 83s and CVX gonna break 100

Hello $45

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I have no sympathy for H&P, they've consistently been hard to negotiate and deal with. Very proud of their rigs.

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Maybe have some sympathy for the minimum 22 crew members per rig stacked, not to mention other third parties and service companies?

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No doubt. Unfortunately employees suffer due to boneheaded moves that their management makes. Happened at my last stop.

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Looks to me like oil is going to trade around $50 for awhile, then rise towards $60 by the end of the year. My prior prediction in January had oil bottoming in the low 30's, but I don't see it going below $40 now. And any selloff in the next 30 days due to seasonal factors will be temporary in my opinion.

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I'd be interested in your reasoning, as the fundamentals have gotten much worse since your January prediction.