Well that's a wish. But suckers are out there, remember. May be his campaign will now be 'we will demolish that wall' so Mexican oil can flow freely. Who knows suckers might believe that too.
wtf. Oil getting bailout
- Thread starter S2007S
- Start date
How is oil industry is different from airlines? If we bail out one why not the other? the world is shut down, helping now makes sense, 2008 bail out was a disgrace. GS should have never been paid 100 cent on a dollar for AIG shit, just one of many examples. Another changing mark to market rules to bail out Buffet. Buffet would have been wiped out if he had to face margin calls like the rest of us. No one ever learns cause there was no pain for upper echelon.
Saudi Arabia only hurt themselves. Their breakeven for oil production is $40 a barrel like US shale oil producers. Russia does not care as they have LNG and export a lot of it to Europe. Saudi Arabia is not going to break Russia. What they accomplished is burn thru their cash reserves. They still have to buy food to eat and US weapons for their wars. Oil below $40 a barrel and they are giving it away for free as it costs more to produce it. Waging war in Yemen is expensive. US shale oil producers stored their oil in tankers off Asia where demand is highest. This is a temporary thing which people forget. Nobody is using oil because of the quarantine. Once, multiple countries open their economies, demand will spike back up. People will still drive their cars, go about their business and spend their monies.
It is not a bailout problem. American oil wells can't take a shut in cuz it is expensive to restart production. Greed overwhelmed and supply far exceeded demand in covid_19 environment.
Oil futures always converge to cash value on the last days. Oil has been trading for less than a beer in cusing for several days. No one paid attention. There is no storage for oil that is being produced.
Hypothetically pretend that tomorrow there is a news that everyone can dig to 300 ft to find tons of gold in their backyard across america. Gold will no longer be precious.
Shale Fracking and Oil Sands you can. It's one of the few real positives about the methods.
This is what happens when politicians get monster contributions from corporations and both political parties decide that they are going to pick winners and losers in the bailout game.
Yup, and with the infrastructure being already in place, fresh capital comes in and repeats the cycle over and over again. The initial acquisition cost goes lower, capex and opex balance still rules.
Sure, why not. Bush and Obama got to pick winners and losers in the banking and health insurance industry. (hint: homeowners and the individually insured were the losers)
Not going to be a popular opinion, but blaming Russians and Saudis (and Chinese) for Oil market woes is quite stupid.
Fact is American production did not adjust to market realities of demand and storage. They assumed that taxpayer funding will be there and continued production. Moral hazard in action when we have oil industry owned politicians in power.
What if food stamps are not funded? Atleast Exxon will not have to cut dividends.