Oil has tanked (pun intended ). With prices this low, I'm thinking that shale companies are technologically enhanced radioactive material (TERM); a.k.a., dead meat. Fact or fiction? Flipping through some of the largest fracking companies seems to bear this out.
Depends on how much debt they are. The Saudis and Russians know, which is why they pulled their little stunt
Frackers are toast Dollar cost average into the big 5 during this decimation and you will do well BP RDS.A TOT CVX XOM (also PSX and COP if you like)
US shale oil producers have halted pumping out oil and now reports are they are storing oil they pumped out in oil tankers off Asia where there is a large demand for it. If I were them, I would take a loan and try and get favorable loans secured by oil in those tankers. This Corona Virus is hanging over everyone including, the Chinese. Demand for oil will go back up at some point. Maybe, in 3-6 months. Saudi Arabia being opportunistic but, they are bleeding out their cash reserves as well at a fast clip. They cannot survive on their oil alone, they too have to eat, buy US weapons among other things. US shale oil has a breakeven of about $40.00 per barrel. Higher oil prices in the future due to less supplies will benefit US shale oil.
Just found this article, it turns out Saudi Arabia's breakeven price is $40 per barrel so, they will end up giving their oil for free? Ha ha ha! Jokes on them. https://www.forbes.com/sites/rrapie...l-price-is-higher-than-expected/#49aedab51c02
In California and the Central Valley has over 600,000 oil and gas jobs. I read in Sacramento Bee they have laid off over twenty five percent of employees. Cost to extract according to friend at one of the smaller companies like Berry or California is $40. Saudis cost is $4, not hard to see these companies imploding is it?
%% Most likely right, KMS. But i read a 52 week IBD newspaper XOM, CVX....... are positioned much better, + truck fuel should help them even more/good dividends.
As I posted in another thread, there are fewer than 160,000 jobs in oil and gas extraction in the entire United States (https://data.bls.gov/timeseries/CES1021100001?amp%3bdata_tool=XGtable&output_view=data&include_graphs=true) So no way that the Central Valley has 600,000 oil and gas jobs! Heck, fewer than 4M people live in the entire Central Valley, even if the BLS data didn't make that statement absurd the idea that 15% of the population there works in oil and gas extraction doesn't pass the smell test if you've ever spent any time there. Oil and gas extraction isn't very labor intensive at all, it makes up .1%, one tenth of one percent, of all U.S. jobs. Any talk about massive job losses to the country from that industry need to be taken with a giant grain of salt and a some quick reality checks. They say 95% of statistics are made up......
Buying opportunity is one can hedge. Virus not going to be forever, when people can return for employment, cars will drive and trucks will drive even more. I luv hearing when so much doom and gloom of industries, one man's junk is another man's masterpiece.