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WTI Crude Slides To $48 Handle As Chevron Cuts Costs, Ramps Production
The almost-$2 surge in WTI crude prices on Friday - proving recovery is here and stability is back - is gone... long gone. Following comments from Chevron of major cost cutting, slashing capex (down 13% YoY), but ramping production of shale and tight assets, WTI crude has tumbled back to a $48 handle.
- *CHEVRON SIGNALS LOWER CAPITAL SPEND
- *CHEVRON SIGNALS AGGRESSIVE COST MANAGEMENT
- *CHEVRON CURTAILING CAPITAL SPENDING & LOWERING COSTS
- *CHEVRON: POSITIONED FOR 20% PRODUCTION GROWTH TO 2017
- *CVX TO CONTINUE TO RAMP-UP PROD FROM OUR SHALE & TIGHT ASSETS
WTI gives up Friday's gains...
And then Chevron added:
- *CHEVRON VICE CHM: $3 NATURAL GAS = $18 CRUDE OIL
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Fuck oil, buy gold.
https://www.youtube.com/watch?v=ZCJBqxMlNNg
Gold dropping like a rock right now, headed for $1150.
Debt (not mortgages) has to be paid back and if the price drops, you simply have to sell more. The more you sell, the worse the oversupply and the more the price drops.
So, when do the margin calls start?
chevron 2nd largest US taxpayer
http://www.usatoday.com/story/money/personalfinance/2013/03/17/companies-paying-highest-income-taxes/1991313/
Folks been cash flowed!
Just floating down the shit river, admiring the scenery...
Not to worry state of Georgia just added on about 30 cent tax to bring it up .. sooner or later the cost is going up and the tax stays.. SSDD and wiht a republican legislature yet.
No we did not. They increased the tax from around 19 cents to around 30 cents.
Thanks
If Chevron is like other majors, its production has been stagnant for a decade with increasing CAPEX. So, "positioned for 20% production growth" to 2017 seems a bit of a tall tale.
Absolute dirt cheap money followed up by merely cheap money looks like it may fuck up some supply chains this time around. Good job, Fed! You're playing with fire and we get to see if you're going to burn us all!
What makes it special is everything that the market is doing is predicated on making things much worse. Economic implosion sounds like fun unless your at ground zero.....
Natural gas less than $3 last time I looked. Wow!
There go the marginal players, the leveraged whelps in the industry, with their blown-out dreams of bootstrapping their way to the .1%.
Lower oil prices=lower gas prices=people have more $ (not) to spend=wait, where was I going with this?
Wench! Bring me another mead.
pods
You had better start learning to like the taste of spirits distilled from sugar beet wine, comrade.
Let me guess - biggest slide SINCE LEHMAN!
Let me guess - biggest slide SINCE LEHMAN!
no shit. That's funny right there...
WTI oil weekly indicated more downside last week
http://bullandbearmash.com/chart/wti-oil-weekly-moves-higher-earlier-hol...
USD strength is driving commodities and indexes lower - FINALLY INDEXES.
lets see crude is down 50%, but gasoline is down maybe 10% from the $4 highes. is Chevron laughing all the way to the bank?
Gasoline contango. Keeping it off the market hoping to sell it at higher price later on. "Hoping".
Someone leak the API number?
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Making a little beer money from SCO today!
Investors Are Buying Stocks and Bonds From Energy Producers Amid Oil Price Drop – U.S. and Canadian companies have sold more than $8.4 billion of new stock
9 March 2015, by Corrie Driebusch, Ryan Dezember and Mike Cherney (Wall Street Journal)
http://www.wsj.com/articles/energy-firms-feed-stocks-and-1425936826
Excerpt:
Goodrich Petroleum had little trouble last week selling $49.8 million of stock as well as loans to replace some of its bank credit.
Though the new shares were quickly sold in the hours before the market opened March 2, Goodrich stock lost 12% during the trading day.
The offering gave Goodrich “liquidity and comfort through 2016” should oil prices remain in their current range, said Robert Turnham, the company’s president.
“It is painful to suffer the dilution, but it ensures you get to the other side of the abyss.”
Brent crude dips below $58 on strong dollar and supply
10 March 2015, by Claire Milhench - London (Reuters)
http://www.reuters.com/article/2015/03/10/us-markets-oil-idUSKBN0M505B20150310
Being in the construction industry, more specifically industrial coatings specializing in Pipe Lines, Refineries, Crude Storage Tanks, etc... Got an interesting call from our BP Purchaser.
Last Feb. (2014) - Our company was awarded a 3 year contract for maintenance painting across the the US. That being said, He was calling to ask for Rebates due to the drop in oil prices. He continued on to say it would only be temporary (12-16 months), and that all Purchasers were directed to reach out to all contractors for rebates.
Taking it one step further, there is no contractual language covering these "Spontaneous Rebate" requests. Whats worse, is the fact that if we fail to offer a rebate; the current maintenance contract will be the last.
Just goes to show how desperate oil companies are getting, and the +/- $50 handle most likely still has room to fall