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ConocoPhillips Cuts Capex Amid Intractable Oil Rout
It's a bad time to be in the commodities business.
Crude is in a veritable tailspin as an increasingly disjointed OPEC ramps production to three-year highs...
...and the thanks to a worldwide deflationary supply glut, the Bloomberg commodities index is sitting near its lowest levels of the 21st century portending doom and gloom for prices across the entire commodities complex.
For producers, this means three things: layoffs, asset sales, and capex cuts. Earlier this week Anglo American unveiled a shocker of a reorganization that included the elimination of 60% of the workforce and asset sales that amount to nearly two thirds of the company's entire portfolio.
On Thursday, we get the latest round of desperate cost saving measures as oil major ConocoPhillips slashes capex by some 25% and looks to raise $2.3 billion from asset sales.
Here's WSJ with the summary:
ConocoPhillips estimated capital expenditures of $7.7 billion for next year, a 25% decline from the reduced levels the oil major expects to spend for 2015.
During October, Conoco had trimmed its 2015 spending plans again after reporting a wider-than-expected loss for its third quarter. At the time, Conoco projected 2015 capital spending of $10.2 billion, down from its prior guidance of $11 billion. It also lowered its operating cost outlook to $8.2 billion from $8.9 billion.
Chairman and Chief Executive Officer Ryan Lance said in prepared remarks Thursday that the company’s plan for next year highlights actions Conoco accelerated over the past year to position the company for low and volatile prices.
On Wednesday, Chevron Corp. projected capital spending plans for 2016 of $26.6 billion, which the oil giant said is 24% below expected capital and exploratory spending this year.
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They should invest in strippers.
Those ASSets might need some oil
http://www.thepornster.net/video/400/oily-ass-slut-gets-split-open
Everyone wants to sell oil assets. To whom?
Right here. I'll take 'em.
I just need a really big loan.
To a banker who will profit later.
never let a little thing like a loss fuck up your dividend. that would be crazy. besides, it's a great time to sell oil related assets i'm sure. /s
on Thursday, we get the latest round of desperate cost saving measures as oil major ConocoPhillips slashes capex by some 25% and looks to raise $2.3 billion from asset sales.
Who are going to buy those assets if everybody is selling??
remember those mining machines at auction in australia?
Michael Corleone: Senator? You can have my answer now, if you like. My final offer is this: nothing.
This oil debacle is blowback from the Bush invasion of Iraq. Saudi Arabia, which partnered with Bush and Cheney in the 9/11 attack, now needs every dime it can make from oil sales, so the Saudis are selling every barrel of oil they can now. The fired Iraqi Sunni generals, who created and control Daesh, are now a threat to Saudi Arabia. The purpose of Saudi king Salman's spree of head chopping is to keep the Saudi populace in line. Salman is also trying to buy off the people and the Saudi royalty with government largesse, an expensive proposition. What the end result in Saudi Arabia is, is anyone's guess. The Middle East is on fire and all Obama will do is pour kerosene on the flames.
The same people who always buy when the paper prices are pushed down, the vultures in the financial arena. When the time comes they'll start bidding the paper prices up to sell at a hefty profit.
But I read in MSM that every thing is Great!
... and all the MSM and NPR are focused on The Donald's hair.
wtf?!
After fracking more than 1,678 wells in the last year, North Dakota oil production is now down 4,301 barrels per day.
When you think about it, what OPEC is doing is an act of war against the US fracking industry. But they are our "staunch allies"? The US with its position, policies and goals isn't just drifting; it's drifting in pieces.
Tick tock on the dividend.
Dude Tyler, haven't you see this news?
http://www.alaraby.co.uk/english/features/2015/11/26/raqqas-rockefellers...
Quote:
"IS oil production in Syria is focused on the Conoco and al-Taim oil fields,"
Isn't that CONOCOPHILIP gas fields??
Well.. NO WONDER that conoco panicking finding cash. The Russian bombs this damn thing to heat el-diablo palace..
THEY ARE GUTTING ASSETS, WORKERS, to pay an OUTRAGEOUS $6.5BILLION/yr DIVIDEND from cashflow! HOW FKING STUPID!
This should be a fudiciary crime by CEO !
You didn't believe the new normal was going to be a static interval did you?
All the producers may be losing per barrel, but they are gonna make it up on volume.
Basic Econ 101, right?
It's a bad time to be in the commodities business. BS.
So.
How many billions were the last years profits, greater than the following years profits, for the last 10 or so years.
So some prince in a dress will only be able to buy 10 mercedes this year.
There have always been boom and busts in the oil bidness. Those that pay attention, know that perpetual growth, ain't.