Saudi Arabia to lower oil prices, the houston boom is over

Some have told me they are pointing to Q1 or Q2 next year. Keep in mind these same people were still optimistic about this year last December.

I suggest you ignore projections and "enjoy" the ride. Too many variables.

 

Maybe 18 months? That's my vague guess.

 

what effect will china's devaluation of the yuan have on oil?

China Slashes Yuan Reference Rate by Record 1.9%
http://www.bloomberg.com/news/artic...an-reference-rate-by-record-1-9-amid-slowdown

 

Not so much god as a half century of product and franchise branding, quality and process control, and vendor and demand tracking down to the individual counterparty.

 

The rattiest tenements in Bay Area and the five boroughs probably still rent for $2,500 min in the midst of a recession because of pop density. Not there yet, but now that even M-7 MBAs know they won't be bankers, consultants or work for tech startups, and local NHS kids are finally putting SWC schools at capacity Houston's going to keep getting postwar type growth.

 

Is it a good idea to buy one of those townhouse/single family homes to rent out?

 

It'll be back up when Saudi wants it to be back up. Shale production isn't going away and western producers haven't dropped production that much. From my understanding Saudi has some mega infrastructure projects they want to do. When they need the cash, they'll raise the price.

 

Looking back...I'm still blown away by all the "experts" who said we'd never see oil below $100 again in our lifetimes. That $200 oil was on the way.

 

I am waiting until May to start looking. I can't decide if i should wait and see if Houston busts or if I should just take advantage of the low interest rates.

 

Yep, check out the article I posted a few pages back:

Saudi Arabia may go broke before the US oil industry buckles

 

If they let the Yuan fully adjust to market forces (meaning the Yuan would go much lower) it could help the Chinese economy and be bullish.

At this point though, they don't appear willing to do that.

And there is still tons of supply.

 

Fracking revolution aint just hype.

Bigger problem now is carbon emissions.

 

Chevron laid off a bunch of people today and it looks like this is just the beginning.

https://www.thelayoff.com/chevron

 

Is that on top of the 1500 already announced?

http://www.houstonpress.com/news/chevron-announces-1-500-layoffs-and-they-wont-be-the-last-7625739

 

And just generally speaking...when someone starts using words like "never again" or it will "always be __________" it's time to bet the other direction.

 

It is funny that feds are saying the same thing about HOME interest rates.

They aren't going to go up.

Can't afford to push the market down right now with all this international economy fail going on right now.

Those are going to head down come winter time.

A good time to buy in Houston will be this winter.

 

i think this was the first phase..it's been a slow process. Phase 2 coming later.

 

Except there is some control over interest rates, typically. And I don't hear anyone saying anything like, "they'll never go up again" or anything like that.

But the price of a commodity....wow. I remember reading that Goldman Sachs report that was talking about $200 oil and it never going below $100 again. That was just crazy.

 

4 months ago Chevron was being real aggressive in their deepwater E&P. Don't know if they misjudged future prices or if this was the plan all along, but AFAIK they were the only major at the time still being so aggressive.

 

Chevron struck out big on its BigFoot Platform. They were expecting the 5.1 billion dollar platform to start producing oil by now, but mooring issues have made it to where it probably won't produce for another 2 years. That's a huge loss on expected profits.