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

Semi replaceable? Sure.

Very replaceable? Highly unlikely, at least as far as the not too distant future goes.

I'm not sure that you understand the role that petroleum plays in our everyday lives.

 

With all due respect, the way we budget could be greatly improved and that includes me.

Also, I've explained a few times that there are certain people that it is a considerable amount of disposable income.


Anyway, the CEO of my employer sent the email we all didn't want to see today. Layoffs are coming.

 

Sorry to hear that bro, good luck.

 

I work in midstream. We laid off 200+ folks last week.

 

Praying for you and your family.

I'm kind of surprised you got this email, actually. I thought McDonald's would have been fairly resistant to the oil price decline.

 

I LOL'd but you're still a dick

 

Thanks. A lot of companies sent emails out today. I know BP did too.

Finance runs pretty lean at our company to begin with. Just gotta make it through 15 and things will hopefully straighten out some.

 

I assumed you were a teenager

 

The MNA's begin....

http://www.forbes.com/sites/christo...hamm-sells-pipelines-to-kinder-morgan-for-3b/

Hamm Sells Pipelines To Kinder Morgan For $3B

In an interesting deal today, Harold Hamm, the billionaire CEO of Continental Resouces, decided to sell his privately held Hiland Partners pipeline company to pipeline behemoth Kinder Morgan KMI +0.19% (itself run by billionaire Richard Kinder). The deal price is $3 billion, including assumption of debt.

Hiland’s pipelines are located in the Bakken oil region, where Continental has the majority of its operations, and consist of 1,200 miles of pipe as well as 1,800 miles of oil gathering systems that reach into some 3.7 million acres. The Double H pipeline will soon be able to handle 100,000 barrels per day, and Hiland’s gas processing systems are being expanded to handle 240 million cubic feet of gas per day. Naturally, the biggest customer of Hiland is Continental, but also includes Hess HES +0.92%, Exxon, Whiting and Oasis.

Why do the deal now? Well selling off his personally owned pipelines gives Hamm lots of dry powder in case he feels like buying up any of the troubled little oil companies out there in the Bakken and elsewhere. Hamm, as he’s explained to me numerous times in recent months, believes oil’s downturn is only temporary and that it is only a matter of time before oil prices return to levels profitable for America’s unconventional drillers. He likely sees a lot more profit potential in reinvesting that capital into oil acreage at these low prices rather than holding onto lower returning (but much safer) fee-based pipelines.

There could be some personal reasons too. A couple weeks ago Hamm’s recently ex wife Sue Ann deposited the $975 million check he wrote her to satisfy the terms of their court ordered settlement. Even in accepting the windfall, the former Mrs. Hamm said through her attorneys that she intended to appeal the court decision and seek more cash. Hamm doesn’t talk about his personal issues, but I know he’s tired of courts and lawyers. Even a hard-nosed deal maker might see the upside in forking over just enough of Kinder’s cash to make the problem go away once and for all.

 

texxx...What are you mad about? that Rice's "athletic program" continues to be garbage? Go sit down somewhere, sir.

 

Yes I've been told that a few times. Doesn't bother me much. I'm turning 30 in Feb. and the first time i saw clutchcity.net i was a teenager.

 

I ain't mad bro

Rice won their bowl game. Baylor didn't. Tears

 

Yep, upstream/midstream consolidation. Major players in the industry are going to see MASSIVE profits once this situation plays out and prices normalize.

 

I heard a rumor that the midstream company i work for recently underwent layoffs to better position to company to acquire distressed assets. Sounds like cutting Tarik Black to pick up Josh Smith

 

Who did y'all play? Yeah, nobody knows. The Fred Loya Insurance bowl doesn't count.

 

do you have any idea the costs that would be involved in replacing an entire infrastructure with new forms of transportation? way cheaper to stick with oil, even if it's at over $100 a barrel

 

we will need petrochemicals for materials for a long time.. you're right

but transport fuels could find cheaper and cleaner alternatives.. how much of petro demand is transport fuel based?

 

The king is dead. Now what?

 

brother in law and my neighbor both got laid off today.

 

You wait a while and he comes back, it's the third boom/bust I've seen. You know there is still a crazy expansion/boom going on in refining chemicals, plastics and natural gas exportation. The Panama Canal expansion is going to open and the Port will get bigger, the Med Center is growing like crazy, The Airports are expanding so fast they are building their own trade school to train the construction workers, Houston housing and cost of living is still as attractive as anywhere.

It'll be OK in general.