wtf. Oil getting bailout

Discussion in 'Wall St. News' started by S2007S, Apr 21, 2020.

  1. bone

    bone

    Tell me how saving corrupt bankers - and indeed financing their bonuses, is morally superior to saving US domestic energy production.

     
    #31     Apr 21, 2020
    PintoFire likes this.
  2. It is not.

    Funding food stamps is morally superior to taxpayer funding of banks or oil companies
     
    #32     Apr 21, 2020
  3. S2007S

    S2007S

    So what is the actual price of "SPOT" oil right now???????
     
    #33     Apr 21, 2020
  4. bone

    bone

    A Pint of Nancy Pelosi's Ice Cream costs more than three barrels of Spot Cushing:D
     
    #34     Apr 21, 2020
  5. smallfil

    smallfil

    Do not know where you got your bogus $8-$10 per barrel of oil cost. Saudi Arabia did this before and failed badly, losing market share and depleting their cash reserves. Their breakeven is $40 a barrel which means they are giving their oil for free. US shale oil reduced their cost basis knowing what the Saudis were doing. Now, they are less vulnerable as they can just cap their oil wells.
     
    #35     Apr 21, 2020
  6. narafa

    narafa

    https://www.bloomberg.com/news/arti...t-fraction-of-rivals-costs-and-way-more-of-it

    + one more source:

    https://oilprice.com/Energy/Oil-Prices/Aramcos-Breakeven-Costs-Are-The-Lowest-In-The-World.html

    The $3 something cost mentioned by Bloomberg does not factor other operating costs, they are basically talking about how much does it cost to get oil out, that's basically the raw/direct cost of extraction.

    More realistically, it's in the range of $8-$10 per barrel (When factoring in other operating costs).
     
    Last edited: Apr 21, 2020
    #36     Apr 21, 2020
  7. smallfil

    smallfil

    Here is the article stating Saudi Arabian breakeven price is much, much higher than the claimed $10 per barrel. Who do you believe?

    https://www.forbes.com/sites/rrapie...l-price-is-higher-than-expected/#2a3071a11c02
     
    #37     Apr 21, 2020
  8. smallfil

    smallfil

    This is an excerpt from the same article stating the breakeven at $40 a barrel. So, the Saudis lied. Would not be the first time for them considering they are promoting Aramco.

    However, I found the most significant item in the prospectus to be that Saudi Aramco struggled to break even in 2016 when Brent crude averaged about $45 per barrel. Net income in 2016 was only $13 billion, and free cash flow a mere $2 billion. Contrast that with the $111 billion in income and $86 billion in free cash flow the company made in 2018 (when Brent crude averaged $71.34/bbl), and it looks like Aramco's breakeven price is just about $40/bbl.
     
    #38     Apr 21, 2020
  9. narafa

    narafa

    The Forbes article is trying to figure out the cost from the financial statements of Aramco, which is not correct or accurate since the financial statements of the company are consolidated and include many operations and many items.

    You don't get such details from a consolidated statement.
     
    #39     Apr 21, 2020
  10. Let free market and capitalism decide.
     
    #40     Apr 21, 2020