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Crude Tumbles Near $46 Handle As US Oil Rig Count Rises For 2nd Week
After last week's surge in total rig count, this week saw a modest 2 rig drop to 874 total rigs. However, oil rigs rose once again - up 5 to 664 rigs. This is the highest since May 8th. The last 5 weeks have seen a 36 rig rise - the biggest such rise since April 2014. WTI Crude prices are reacting negatively to this news.
- *U.S. OIL RIG COUNT UP 5 TO 664, BAKER HUGHES SAYS
- *U.S. TOTAL RIG COUNT DOWN 2 TO 874 , BAKER HUGHES SAYS
- *OIL RIGS IN PERMIAN BASIN RISE BY THREE TO 247: BAKER HUGHES
- *OIL RIGS IN WILLISTON RISE BY ONE TO 71: BAKER HUGHES
And crude is reacting negatively...
and some context on the week...
Charts: Bloomberg
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The answer is in the question:
For whom are the rigs drilling?
Maybe there is some deep pocket benefactor who is supplying extra cash to keep them above water just because?
Abiotic oil generation exceeds our consumption.
Prove it. Actually better said: please show some good links, thank you.
Oil price.
Read the Obama Antichrist prophecies... the price of oil and the price of gold will soon be the last things on your mind... http://revelation.ca
if 35$ in WTI doesnt hold...we are looking at a retest of 2001 lows 20$.
RIPS
Wait a sec - there's an oil trading G_d in Connecticut who insists the "absolute floor" for oil is $40. Absolute floors are not as certain as laws of physics. I think we will see shortly whether the oil trading G_d is correct on his theory of absolutes. What is HIS performance record after coming out from under the umbrella of Citigroup ?
Critical thinking skills used to be a requirement at ZH. Peddle your religous bullshit someplace else. Blah, blah , blah. Read a little history and every world power leader has been declared the Anti-christ by the religous shysters of their day. Every pope. King George, Napoleon, Lincoln, Bismarck, Kaiser Wilhelm, hitler, stalin, i'm sure I am leaving some out. WW1 and the Spanish Influenza, WW2, the Great Depression were all the end times and Jesus return was right around the corner. Except it wasn't, and there was no refund for all the love offerings collected from the credulous.
You will find most people here are highly skeptical of fearmongering charlatans.
The Pope is likely the most evil man on the planet, as are many wolves in sheep's clothing like him. They don't fool us true believers, who, according to you, lack critical thinking skills. But....they do fool you. Guess we know who is REALLY lacking critical thinking skills then....
http://mragheb.com/NPRE%20402%20ME%20405%20Nuclear%20Power%20Engineering...
The Expanding Earth and the Electric Universe theory explains it nicely. The reaction is occuring within the Earth and it is increasing the mass of the Earth. The energy is coming from the environment into the planet and the sun, turning into mass.
MEOR
http://www.glossary.oilfield.slb.com/en/Terms/m/microbial_enhanced_oil_r...
War is now a very expensive game to play.
Heavily indebted frackers have no choice but to pump more oil or else go bankrupt.
This probably wouldn't matter much in the absence of leveraged finance. It's a gigantic fucking nuke because of leveraged finance.
Low rig counts. XOM and Chevron cratering on bad earnings. Crude going down.
Bad news for our economy, and likely the world economy as well.
Rigs up cause frackers desperate for cash, pumping more despite price?
Or..
Rigs up cause frackers *were* anticipating higher oil prices, thinking to get jump on market?
Guessing it's door #1
All of the above. All the analysts and oil company CEO's were calling for $75-80 oil by late summer-fall. Oil was around $60 through most of May-June. The frackers started ordering more rigs because they can't stop pumping oil or else they will wither away and die due to billions in debt. The credit markets are closed for most of the small and medium sized E&P's because they've maxed out their lines of credit and debt/equity ratios for debt covenants. Most of them have already gone to the equity markets and would have to sell at a huge discount if they wanted another round.
The bank regulators are starting to crack down on these small and medium banks lending billions without collateral at 2% interest. Why would anyone lend to a debt zombies with perpetual negative free cash flow at 2% when they can get higher yields on the 10 year? Not that the US government is solvent, but at least they can print and pay you back in inflated dollars and you'll get something, even if 50 cents on the dollar. With these unsecured loans, you are last in line and will get nothing.
When the medium sized frackers start going bankrupt, then you'll know the water is safe again.
5 rigs out of 664 is a blip, but the game must be played......
Kind of like how a 2 million barrel draw out of 660 million barrels in storage makes oil jump 5%
Price of pump crushing consumers. At least we love to drive.
:)
http://www.wsj.com/articles/norwegian-government-faces-fluctuating-divid...
why is gas still 3 bucks a gallon in the shitcago area?
it should be 4$, you are right
LOL!!!!
You're so wrong!!!!! I like it though haha
Because of the true welcome sign to Illinois that should read:
Welcome to Illinois:
F**k You
Pay Me
JFC, the tolls, the taxes, city taxes, county taxes, fees, everyone has their hand out, and not just street urchins.
No job, no gas, no problem!
And gas prices are going to drop WHEN? Last time oil was near $50 gas was below $2.00. Now it is much higher. What am I missing here?
Quarts of oil. They're over $4.00 now.
You're missing the seasons. Summer blend is more expensive than winter blend due to stricter EPA regulations during driving season
"We'll be millionaires, boys! I'll share it with all of you!" Carl Denham (Robert Armstrong), King Kong 1933
Come and listen to a story about a man named Jed
A poor mountaineer, barely kept his family fed,
And then one day he was shootin at some food,
And up through the ground came a bubblin crude.
Oil that is, black gold, Texas tea.
Well the first thing you know ol Jed's a millionaire,
Kinfolk said "Jed move away from there"
Said "Californy is the place you ought to be"
So they loaded up the truck and moved to Beverly
Hills, that is. Swimmin pools, movie stars.
Well now its time to say good by to Jed and all his kin.
And they would like to thank you folks fer kindly droppin in.
You're all invited back a gain to this locality
To have a heapin helpin of their hospitality
Hillybilly that is. Set a spell, Take your shoes off.
Y'all come back now, y'hear?.
T. Boone Pickens quote:
"If you want to make a deal real bad, you’ll make a real bad deal."
http://twitter.com/boonepickens/status/582984477632270336
Seems to me like a pile of devilishly bad deals will be going down in the Oil Patches over the next year or so...
lol I see Tyler doesn't report US production data anymore. I wonder why.
I'll report it straight from the US Energy Information Administration
US oil production: July 2014 = 8.5mbpdJuly 2015 = 9.5mbpd
Looks like US oil production has increased by 1 million barrels per day since last summer
How about OPEC?
July 2014 = 32.3mbpd
July 2015 = 33.4mbpd
Looks like OPEC has also increased oil production by over 1mbpd since last summer.