Brent crude drops below $59 - should we stop selling it

[London424]

All the companies in the O&G sector are reviewing their business plans and operations.

A lot of investment/expenditure will be shelved until there is some recovery.

Lots of jobs will be going.

http://www.hellenicshippingnews.com/oil-price-cras...

[Some Gump]

XJ Flyer said:

I'd imagine those who'd prefer to leave the stuff in the ground rather than use it and the green/global warmist cause at least would say that.Meanwhile the fact that the oil suppliers seem happy enough to keep putting oil on the market at lower ( hopefully reducing ) prices from existing sources,while cutting back on 'new' extraction projects,suggests that I'm not a million miles off the truth.

Edited by XJ Flyer on Tuesday 16th December 21:50

Read some A level economics, the word "inelastic" then review your position on tax take.

Oh hold on, make that GCSE.

Or Robert Peston.

[XJ Flyer]

Some Gump said:

XJ Flyer said:

I'd imagine those who'd prefer to leave the stuff in the ground rather than use it and the green/global warmist cause at least would say that.Meanwhile the fact that the oil suppliers seem happy enough to keep putting oil on the market at lower ( hopefully reducing ) prices from existing sources,while cutting back on 'new' extraction projects,suggests that I'm not a million miles off the truth.

Edited by XJ Flyer on Tuesday 16th December 21:50

Read some A level economics, the word "inelastic" then review your position on tax take.

Oh hold on, make that GCSE.

Or Robert Peston.

The results of listening to those who wrote the A level economics books is clear for all to see in the form of a product that is taxed and/or valued so highly it has become unviable to the point of the producers having to slash the price or leave it in the ground.For the information of those A level economists it is better to charge less tax and sell more of the stuff in a growing economy than to leave it in the ground and get no tax in a stagnant economy.

Edited by XJ Flyer on Tuesday 16th December 22:08

[TKF]

XJ Flyer said:

Some Gump said:

XJ Flyer said:

I'd imagine those who'd prefer to leave the stuff in the ground rather than use it and the green/global warmist cause at least would say that.Meanwhile the fact that the oil suppliers seem happy enough to keep putting oil on the market at lower ( hopefully reducing ) prices from existing sources,while cutting back on 'new' extraction projects,suggests that I'm not a million miles off the truth.

Edited by XJ Flyer on Tuesday 16th December 21:50

Read some A level economics, the word "inelastic" then review your position on tax take.

Oh hold on, make that GCSE.

Or Robert Peston.

The results of listening to those who wrote the A level economics books is clear for all to see in the form of a product that is taxed and/or valued so highly it has become unviable to the point of the producers having to slash the price or leave it in the ground.For the information of those A level economists it is better to charge less tax and sell more of the stuff in a growing economy than to leave it in the ground and get no tax in a stagnant economy.

Edited by XJ Flyer on Tuesday 16th December 22:08

I don't think he's actually telling you to read an A level text book. I think he's saying you're thick. I think he's right.

[cardigankid]

Short answer - yes.

[Ilikebeaver]

JungleJim said:

Ilikebeaver said:

Dad works on the rigs. It's likely that this trip will be his last from his current contract. (Not a bad thing IMO)

Rig will get shut down and will end up getting recommissioned when price of oil increases again

Which field/platform?

I don't know a lot about it, but he is currently running a rig in Iraq and is in exploration

[lambysdad]

Existing producing platforms will continue, drilling / exploration will slow down in most areas...this is where you will see cut backs.

Some Countries can still operate at this price. E.g. Saudi / UAE and the like will be able to operate and still make profit due to the huge reserves, whereas as smaller producing Countries will struggle.

Operations will certainly slow down, but somewhere in the World the Industry is always busy.

[iphonedyou]

Ayahuasca said:

Don't you mean, it's an economic play against US shale oil producers?

Actually, I'm given to prefer the view that it's a combined play between the US and Saudi against Putin. In response for, inter alia, his actions in Ukraine, annexation of Crimea and support of Assad in Syria. Taken in combination with the economic sanctions, it's working.

[Scuffers]

there's also the hope that it screws the american hedge funds and banks that have been rigging the market for the last few years (and keeping the price's high).

[williamp]

nah. Its all to do with this, circa 2002. the old boycott esso/BP..Its taken a long time, but.....




Rumour has it we are going to hit close to 89p a
> litre for petrol by the
> summer!
>
> Want petrol prices to come down? We need to take
> some intelligent, united
> action.
>
> Phillip Hollsworth, in the USA, offered this good
> idea:
>
> This makes MUCH MORE SENSE than the "don't buy
> petrol on a certain day"
> campaign that was going around last April or May!
> The oil companies just
> laughed at that because they knew we wouldn't
> continue to "hurt" ourselves
> by refusing to buy petrol. It was more of an
> inconvenience to us than it
> was a problem for them.
>
> HOWEVER, whoever thought of this idea, has come up
> with a plan that can
> really work. Please read it and join with us!
>
> By now, you're probably thinking petrol priced at
> about 77p a litre is super
> cheap. Me too! It is currently 79p - 83p for
> regular unleaded in some
> towns. Now that the oil companies and the OPEC
> nations have conditioned us
> to think that the cost of a litre is CHEAP at 77p
> -80p, we need to take
> aggressive action to teach them that BUYERS control
> the marketplace.... NOT
> sellers.
> With the price of petrol going up more each day, we
> consumers need to take
> action. The only way we are going to see the price
> of petrol come down is if
> we hit someone in the pocket by not purchasing their
> Petrol! There IS a way
> we can do that WITHOUT hurting ourselves.
>
> How?
>
> Since we all rely on our cars, we can't just stop
> buying petrol. But we CAN
> have an impact on petrol prices if we all act
> together to force a price war.
> Here's the idea:
>
> For the rest of this year, DON'T purchase ANY petrol
> from the two biggest
> oil companies (which are now one) ESSO and BP. If
> they are not selling any
> petrol, they will be inclined to reduce their
> prices. If they reduce their
> prices, the other companies will have to follow
> suit. But, to have an
> impact, we need to reach literally millions of Esso
> and BP petrol buyers.
>
> It's really quite simple to do!! Now, don't whimp
> out on me at this
> point...keep reading and I'll explain how simple it
> is to reach millions of
> people!! This note is being sent to about thirty
> people. If each of you
> send it to at least ten more (30 x 10 = 300)......
> and those 300 send it to
> at least ten more (300 x 10 = 3,000) ...... and so
> on, by the time the
> message reaches the sixth generation of people, we
> will have reached over
> THREE MILLION consumers! If those three million get
> excited and pass this
> on to ten friends each, then 30 million people will
> have been contacted! If
> it goes one level further, you guessed it.......
> THREE HUNDRED MILLION
> PEOPLE!!!
>
> Once again, all you have to do is send this to 10
> people. That's all. (If
> you don't understand how we can reach 300 million
> and all you have to do is
> send this to 10 people.... well, let's face it, you
> just aren't a
> mathematician. But I am... so trust me on this
> one.)
>
> How long would all that take? If each of us sends
> this email out to ten
> more people within one day of receipt, all 300
> MILLION people could
> conceivably be contacted within the next 8 days!!!
> I'll bet you didn't think you and I had that much
> potential, did you! By
> acting together we can make a difference. If this
> makes sense to you,
> please pass this message on.
>
> PLEASE HOLD OUT UNTIL THEY LOWER THEIR PRICES TO
> THE 69p A LITRE RANGE
>
> AND KEEP THEM DOWN. THIS CAN REALLY WORK!!
>

[neelyp]

Wood Group are cutting sub contractors rates upto 10%, the second reduction in less than twelve months, the project I'm currently on in oil & gas are getting their rates reduced 10% and I've heard rumours that a large oil company are going to be reducing staff salaries by £15K/annum as well as drastically reducing manning levels.
Hopefully the low oil price will kick off some investment in the refining and downstream oil related industries.

[Silverbullet767]

neelyp said:

Wood Group are cutting sub contractors rates upto 10%, the second reduction in less than twelve months, the project I'm currently on in oil & gas are getting their rates reduced 10% and I've heard rumours that a large oil company are going to be reducing staff salaries by £15K/annum as well as drastically reducing manning levels.
Hopefully the low oil price will kick off some investment in the refining and downstream oil related industries.

I'm one of the contractors affected. The mood here is as you would expect. Rumour is a further cut or a reduction in hours is in the pipeline. Morale is non existent. I'm hoping the BP contract we just won will soften the blow.

[andymadmak]

On the upside, my Marine engineering company is hiring engineers..... Not quite O&G rates, but plenty of positions available......

[westtra]

neelyp said:

Wood Group are cutting sub contractors rates upto 10%, the second reduction in less than twelve months, the project I'm currently on in oil & gas are getting their rates reduced 10% and I've heard rumours that a large oil company are going to be reducing staff salaries by £15K/annum as well as drastically reducing manning levels.
Hopefully the low oil price will kick off some investment in the refining and downstream oil related industries.

Its up to 15% in some peoples cases.

[PorkInsider]

TKF said:

XJ Flyer said:

Some Gump said:

XJ Flyer said:

I'd imagine those who'd prefer to leave the stuff in the ground rather than use it and the green/global warmist cause at least would say that.Meanwhile the fact that the oil suppliers seem happy enough to keep putting oil on the market at lower ( hopefully reducing ) prices from existing sources,while cutting back on 'new' extraction projects,suggests that I'm not a million miles off the truth.

Edited by XJ Flyer on Tuesday 16th December 21:50

Read some A level economics, the word "inelastic" then review your position on tax take.

Oh hold on, make that GCSE.

Or Robert Peston.

The results of listening to those who wrote the A level economics books is clear for all to see in the form of a product that is taxed and/or valued so highly it has become unviable to the point of the producers having to slash the price or leave it in the ground.For the information of those A level economists it is better to charge less tax and sell more of the stuff in a growing economy than to leave it in the ground and get no tax in a stagnant economy.

Edited by XJ Flyer on Tuesday 16th December 22:08

I don't think he's actually telling you to read an A level text book. I think he's saying you're thick. I think he's right.

It baffles me as to why anyone even gets into a discussion with him.

[Willy Nilly]

Good thing Scotland voted No, cheap oil would have buggered Alex's accounts up no end.

[XJ Flyer]

Willy Nilly said:

Good thing Scotland voted No, cheap oil would have buggered Alex's accounts up no end.

No he would have followed the advice here by shutting down all production and leaving it in the ground until the price doubles.

[Silverbullet767]

westtra said:

Its up to 15% in some peoples cases.

Where are you seeing this? The e-mail I received from WG Corporate was up to 10%.

[NicD]

Some Gump said:

Read some A level economics, the word "inelastic" then review your position on tax take.

Oh hold on, make that GCSE.

Or Robert Peston.

Are you saying supply is inelastic? or demand, or both?
What question is that the answer to?
Certainly not 'Do I need to sell oil right now at a loss'?
If the producer thinks prices will recover, then if they cannot throttle back production, they could join the many traders and speculators and store in tankers around the world, at least while capacity exists.
http://www.wallstreetdaily.com/2014/11/14/oil-tank...

[YankeePorker]

As already noted above, there will be an immediate impact on the exploration industry. For those in the engineering design, fabrication and installation of production infrastructure the big hit will come in a couple of years when there is a shortage of new projects and employment prospects. The investment cycle is a long one, so they won't be sanctioning projects now and the major impact is felt later on.

If we want to stop selling our oil we just need to turn Scotland into an enormous tank farm and store it all until later!