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Yes. I'm planning on paying a fairly sizable portion via cash. I'm also likely buying for a 5-7 year time horizon so more concerned on overpaying from an equity perspective vs getting clipped on interest rates.
quote:quote:This is relevant to my interests. I'll probably go with a fund like VGENX or something similar over individual stocks, but not sure whether to get in now or wait.quote:
I'm an idiot investor but seems like it's time to go in hard with 5+ yr money.
Same here. What do the smart people on here think? Wait it out a little longer? I figure the impending consolidation will position the smart companies well for the long run.
quote:$30 break-even is for a small portion of shale acreage. The best of the best. Not enough to even come close to sustaining our current production level.
every day Brent is below $50, we're crushing the rest of the world. This is going to be the downturn that solidifies American domination of the future World Energy markets. We're at about $30 breakeven right now, we don't have to fund our government on $110/oil. Every day that Brent is below $50 is like a haymaker to the rapidly declining Saudi money-gut. It's going to be a tough row to hoe, but I think we'll be the last man standing at the end.
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CVX breaking 90 and XOM breaking 80. How much lower do they go?
quote:quote:$30 break-even is for a small portion of shale acreage. The best of the best. Not enough to even come close to sustaining our current production level.
every day Brent is below $50, we're crushing the rest of the world. This is going to be the downturn that solidifies American domination of the future World Energy markets. We're at about $30 breakeven right now, we don't have to fund our government on $110/oil. Every day that Brent is below $50 is like a haymaker to the rapidly declining Saudi money-gut. It's going to be a tough row to hoe, but I think we'll be the last man standing at the end.
No idea in regards to deep-water GOM or shallow EOR.
Now if it was just Brent and not WTI suffering, you would have a point.
quote:quote:$30 break-even is for a small portion of shale acreage. The best of the best. Not enough to even come close to sustaining our current production level.
every day Brent is below $50, we're crushing the rest of the world. This is going to be the downturn that solidifies American domination of the future World Energy markets. We're at about $30 breakeven right now, we don't have to fund our government on $110/oil. Every day that Brent is below $50 is like a haymaker to the rapidly declining Saudi money-gut. It's going to be a tough row to hoe, but I think we'll be the last man standing at the end.
No idea in regards to deep-water GOM or shallow EOR.
Now if it was just Brent and not WTI suffering, you would have a point.
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I have t seen it posted here yet but I heard Chevron recently announced elimination of 1500 employee positions over the next 3 months. Apparently this was based on $70 oil and there is likely to be another round of reductions based on $50 oil.
Has anyone else heard anything similar?
quote:Saudi is fine along with one or two others, but the rest you are correct on. They need oil revenue to run their budgets. I give it another 2-3 months and those other countries will be screaming uncle. Saudi is only after market share period. Their economy is not built around oil as are the others. I read a few pages back, India is huge in this as well. As they grow, so does their potential use. A billion in population will do that. Hopefully China can pull it together but only time will tell...
I think his point was more along the lines that our government will continue on no matter the price of crude. Most of the OPEC governments are funded heavily form their oil and gas production. With such low prices, their governments will eventually collapse or proceed to unrest/war. The US will hurt to some degree but it will be somewhat isolated compared to those countries.
quote:China isn't pulling it together anytime soon. Their economy is a glass house between their ENORMOUS real estate bubble and their current central policies. Their population demographics are rapidly changing, and not for the good. You think our boomer generation is a problem as a drain of resources? Try a family-based culture that is soon to have over 4 or 5 non-contributing dependents per working age adult. Unlike the U.S., these individuals will all be living together under one small roof sharing energy and all depending on their one child and child's spouse to provide. Their population is also going to plateau and then begin decreasing once people start dying off again.quote:Saudi is fine along with one or two others, but the rest you are correct on. They need oil revenue to run their budgets. I give it another 2-3 months and those other countries will be screaming uncle. Saudi is only after market share period. Their economy is not built around oil as are the others. I read a few pages back, India is huge in this as well. As they grow, so does their potential use. A billion in population will do that. Hopefully China can pull it together but only time will tell...
I think his point was more along the lines that our government will continue on no matter the price of crude. Most of the OPEC governments are funded heavily form their oil and gas production. With such low prices, their governments will eventually collapse or proceed to unrest/war. The US will hurt to some degree but it will be somewhat isolated compared to those countries.
quote:I think we will see it during the summer demand cycle, then will retreat back to the $60s as demand wanes and production rises a bit again due to prices. I am also factoring in that I think OPEC's smaller members will break before domestic producers will.
Hope you are correct on $70 by next summer. According to Gary Ross, the production/supply numbers are being overstated so we will all see if that holds true.
quote:Drop in production should result in drop in tolls.
Can someone tell me why the mlp's are getting hit so hard? I thought they were like a toll road and the price of oil did not matter. I own one that pays a nice dividend but is down 30% the past 12 months.
quote:quote:Drop in production should result in drop in tolls.
Can someone tell me why the mlp's are getting hit so hard? I thought they were like a toll road and the price of oil did not matter. I own one that pays a nice dividend but is down 30% the past 12 months.
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Can someone tell me why the mlp's are getting hit so hard? I thought they were like a toll road and the price of oil did not matter. I own one that pays a nice dividend but is down 30% the past 12 months.
