Crude is screwed, man.

Discussion in 'Commodity Futures' started by Overnight, Feb 26, 2017.

  1. xandman

    xandman

  2. xandman

    xandman

    This a futures thread, but I thought we would go on a good tangent with a big U.S. producer's stock.

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    #282     Mar 24, 2017
  3. Overnight

    Overnight

    Nah Mr. DogBDSM, (sorry, cannot resist that lol) the stock price of a single major producer should not have an effect on the actual oil flows and supply/demand pricing in the short-to-medium term. The stock price of ExxonMobil should be affected by way more fundamental shit than just how much they are currently pulling out of the ground at the moment. Operational overheads, outlying debts, corporate bonds...I cannot even fathom all the stuff that goes on to evaluate a company's P/E and stock value.

    The chart you posted looks like a plain ol' TA chart. And while that may work for a stock, it does not work for a futures folk like myself, because futures expire but shares do not. :-(
     
    #283     Mar 24, 2017
  4. xandman

    xandman

    Interesting view point. XOM is the biggest and smartest capital allocator in US energy.

    If you want to learn company evaluation. XOM is a textbook classic. If there was one stock to read about to learn that stuff, this would be it.

    It won't tell you how many rigs will go up next month. But looking at their radical change in spending plans might give a hint of how much US production is ramping up domestically.
     
    #284     Mar 24, 2017
  5. bone

    bone

    That's not correct. Most futures contracts, including Crude Oil, can be charted using continuous, consolidated data. Similarly, you can correct for stock share splits when charting individual equity names on a continuous basis.
     
    #285     Mar 24, 2017
  6. KSA will run out of oil in about 60 years. They need to invent an engine that runs on sand.
     
    #286     Mar 24, 2017
  7. Gotcha

    Gotcha

    Honestly, I highly doubt in 60 years we will care. I really do think renewable energy will trump everything else. Imagine huge installations in the desert soaking up the sun making liquid fuel. By then cars will all be electric, and this liquid fuel will only be necessary for things like airplanes and ships perhaps. If anything needs fuel, it will be manufactured and not extracted.

    60 years is so far out, and at the pace we are going, I really doubt we will need to be extracting oil out of the ground, even for uses other than energy, like for the polymer chains for plastics and such, which will be replaced by assembling the molecules needed by machines. There really is so much technology out there right now that is moving at such a blistering pace that life will be so different.
     
    #287     Mar 24, 2017
  8. xandman

    xandman

    It's a tough call. But consider this, the world has been gaga over oil for over 100 years. And, most of its uses were found only in the latter half.

    It hasn't even been recognized yet as a solution for erectile dysfunction and marital abuse.
     
    #288     Mar 24, 2017
  9. I was stationed in KSA during the 90's and they told me they had approximately 80 years of oil left at current consumption. They drilled further down for water. Gas was .15 cents a liter ...
     
    #289     Mar 24, 2017
  10. Gotcha

    Gotcha

    LOL... I bet in 60 years that will be solved as well. The VR sex will be so amazing, you won't need a wife... and with no wife constantly nagging... you won't have the built up rage! :)

    Its just that things are moving so fast now, and 60 years being so far out, I believe just about anything.
     
    #290     Mar 24, 2017