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Oil and Gas Discussion BB
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The dark side of North American oil space* the quantity and quality of debt available to oil cos is signifying that the capital markets are tiring of keeping a "non free cash flow" investment space afloat. See the decline is market money raises as well over the past quarter and a half. Oil cos are now having to sell assets in order to manage debt and on going drilling programs. Q2 balance sheets and MDA statements will again show how ugly the space has become. * oil prices have risen since Q1 (sharply) in North America and yet oil cos stock prices have slipped by an average of 10%+ since May...why? See above. * all the cheap oil pumped into storage in Q1 is now being utilized at record run rates by N.A. refineries and this will lead to pressure on upstream oil cos E and Ps and the price of oil (POO) in the coming quarters imo. * US oil production has yet to fall with a sustained period at or below $60 bl. * the Saudis and the Russians are and will likely continue to pump for all that they have. * I am watching for the balance sheet statements for Q2 for the elite US oil cos....such as EOG, CLR, PXD etc etc. When they show the real cracks then the real damage will be done to the US oil space which is what the Saudis are after. How much more of their future upside can NA, and more specifically US shale oil cos, mortgage with debt just to keep the present fleeting dream a reality (even though it is a myth)? Answer - only their bankers know. The street is beginning to see it for what it really is....a dark space not worth investing in at present. |
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Msg # | Subject | Author | Recs | Date Posted |
32354 | Re: The dark side of North American oil space | Oiljack | 5 | 7/1/2015 1:10:11 PM |
32378 | Re: The dark side of North American oil space | tigris72poo | 1 | 7/2/2015 4:33:55 PM |