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

http://fuelfix.com/blog/2015/08/17/...rs-as-it-prepares-to-cut-950-jobs/#34624101=0

Chevron cutting 950 jobs in Houston. The bust continues.

 

Dafuq? I've always heard the opposite.

 

this has been known for months. This recent wave was the initial phase. Phase 2 will come later this year more than likely.

 

Patrick is referencing that cuts come to the office workers after they hit the field workers. This is a real estate truism.

 

This is why we have to invest as a county in alternative fuels so our economy is not tied so much to Oil - we need alternatives.....sooner than later.

DD

 

what? the cost of fossil fuels comes down to such a low point that it extends our future supply for years and essentially crushes the bio fuels market for the duration and you're calling for more investments?

No - Houston simply needs diversification. It's always been a joke when we said we diversified. We never did. Our population grew and therefore medical had to grow to supply the population. The port expanded and carries more blue collar jobs, but port activity is influenced by oil. Our service industries expanded to serve the growing population, therefore has been fueld by the growth in energy.

What's the common thread? Outside of the port, as jobs decrease and population growth slows (remember many people were brought into houston on transfers from out of market. when they lose their job, they usually go home) - it impacts homebuilding, manufacturing, hospitality, healthcare, etc... there is no fall back to pick up the jobs.

When nasa crashed, oil took it's talent. When oil crashes now, spacex might take a few, but there isn't a logical transition point for these people. Hopefully, the amount of idling talent will lead to industry creation. That's what we need.

 

100 percent agreed

 

Right, but what I'm saying is I've always heard it the other way around. Except wellhead was typically used instead of drill bit.

 

Global demand is what everyone is watching. China isn't doing too hot and that's a problem.

It'll recover one way or another. To think that it may not be even in the 60's until 2018 is disappointing, but it's merely speculation.

As some have pointed out, oil prices are super volatile and things could change quickly. Our CEO pointed out that the industry was able to survive in a similar environment for nearly 20 years. I believe that he mentioned that it was like this from 99 to 04. Startups designed for the $100 world won't make it but we already knew that.

 

As upstream goes to hell downstream should be making a profit.

GHP Economic Outlook

Perryman Forecast

 

I've got a little money invested in WTI and I'm down about 40% - 50%. Should I get out now or do you think we'll see a recovery within a few years? Really not that much, only down about 6G's so I can live with that. But if I wait, and break even, that'd be better of course. Thanks guys.

 

Oil is pretty cyclical. It will eventually go up if you hold on to it.

 

I just went back to the post where you told me what you bought. I finally decided to click on the translate button since it's yahoo japan. You bought a double bull ETN for oil! You need to know what you are getting into before you start arbitrarily buying stuff. You never invest or hold levered ETN/ETFs because they don't retain their value.

Even if oil rallies back the price where you bought that ETN at you will still be down in your trade. It is nearly impossible for you to ever break even in your trade because of how these things work.

And I have no idea where oil goes from here. Maybe bounce....maybe we break down further....maybe we just go sideways.

 

So Robbie, take my loss? I'd be ok with that.

 

http://finance.yahoo.com/news/what-cheap-oil-means--and-where-do-prices-go-from-here-193021668.html

Found this little article on Yahoo regarding the O&G sector. Thought it brought up some good points.

 

Basically, Oil is cheap which is awesome because gas is cheap but too bad that no one is buying gas since everyone is unemployed.

 

everyone is unemployed now? are you just talking about O&G in houston?

because there are plenty of people in this country employed.

 

There are plenty of people in Houston in the O&G industry that are employed. I actually just changed jobs last week lol. It isn't as bad as everyone says it is. Though I do know a ton of people in the industry so I was able to get this better job through contacts rather than the submit resume, interview, interview again, avenue.

 

Oil prices see the biggest 3 day rally since 1990.

OPEC willing to talk to other producers to stabilize prices. It doesn't mean much until they scale back production but they're hurting and you can tell.

 

There is too much production. Based on game theory these guys will not yield.
Given Chinese demand is slowing, I don't see where they demand for the excess supply will come from.