[StarvingLion]

$this->bbcode_second_pass_quote('', 'T')here is no ulterior motive amongst the Russians.

[onlooker]

$this->bbcode_second_pass_quote('StarvingLion', '')$this->bbcode_second_pass_quote('', 'T')here is no ulterior motive amongst the Russians.

[evilgenius]

$this->bbcode_second_pass_quote('wildbourgman', 'I')f we have any short sellers here I suggest linking up to some social media with some oilfield folks. Get a roughneck facebook friend.

When the first drill ship that gets shut down and quarantined this will cause severe chaos and severe pain in the offshore drilling space. There you go. I can't say much more than that at this point but I think you'll see drilling companies that will be hurt in a major way..

[sparky]

.
They can keep the crew working even if they all have the Corona shake ,
just big wads of money is the required treatment of any ailment in the oil patch

I read the situation as the Russians being sick and tired of propping up the price
while US frackers make no effort to limit their output
it sound like "you want free market ??.... have a shovel full of it "
I'm not so sure how this would play in real life since the US fracking industry doesn't really export on the world market
it would bring some investment into question , especially for offshore

[Cog]

Russia is a third world economic country heavily reliant on oil exports. What they do or don't do won't make a huge effect on global oil prices. They will only hurt themselves. Which is fine with me as dead Russians make me feel warm at night.

[sparky]

.
Last time I checked Russia is the only third world country which operate a space station

[StarvingLion]

Cog's a slogan and ideologue peddler. He's broke.

[evilgenius]

$this->bbcode_second_pass_quote('sparky', '.')
They can keep the crew working even if they all have the Corona shake ,
just big wads of money is the required treatment of any ailment in the oil patch

I read the situation as the Russians being sick and tired of propping up the price
while US frackers make no effort to limit their output
it sound like "you want free market ??.... have a shovel full of it "
I'm not so sure how this would play in real life since the US fracking industry doesn't really export on the world market
it would bring some investment into question , especially for offshore

[sparky]

.
I've been thinking about this .....over-producing in a falling fast market
on the face of it it doesn't make sense
but it is a general phenomenon , so there must be some hard reasons behind it beside stupidity
my guesses is
- bills have to be paid ,
- producing less bring less money but the guy next door keep pumping out as much as he can
being righteous for others to profit from it is a mug game

It seems to me the Russian thinking is let the US get some pain ,
they have been riding high on a couple of production cuts

[kublikhan]

$this->bbcode_second_pass_quote('', 'S')audi Arabia plans to increase oil output next month, going well above 10 million barrels a day, as the kingdom responds aggressively to the collapse of its OPEC+ alliance with Russia. The world’s largest oil exporter started a price war on Saturday by slashing the prices it sells crude into foreign markets by the most in at least 20 years, offering unprecedented discounts in Europe, the Far East and the U.S. to entice refiners to purchase Saudi crude at the expense of other suppliers.

At the same time, Saudi Arabia has privately told some market participants it could raise production much higher if needed, even going to a record of 12 million barrels a day. With demand being ravaged by the coronavirus outbreak, opening the taps like that would throw oil market into chaos.

Maximum Pain
The shock-and-awe Saudi strategy could be an attempt to impose maximum pain in the quickest possible way to Russia and other producers, in an effort to bring them back to the negotiating table, and then quickly reverse the production surge and start cutting output if a deal is achieved.

The production increase and deep discounts mark a dramatic escalation by Prince Abdulaziz bin Salman, the Saudi oil minister, after his Russian counterpart Alexander Novak rejected an ultimatum on Friday in Vienna at the OPEC+ meeting to join in a collective production cut. After the talks collapsed, Novak said countries were free to pump-at-will from the end of March. “Saudi Arabia is now really going into a full price war,” said Iman Nasseri, managing director for the Middle East at oil consultant FGE.

Record Discounts
With jet-fuel, gasoline and diesel consumption rapidly falling due to the economic impact of the coronavirus outbreak, the energy market now faces a simultaneous supply-and-demand shock.

[evilgenius]

Time for Trump to come along and ride horses with his pal Vlad.

Maybe Vlad golfs?

At the same time the man in charge in SA has just put three competitors to the crown under arrest. One of them was the former crown prince. The man in charge is the current crown prince. You can see how this sort of tactic, if true, could rile certain members of the royal family. Trump stuck by Bin Salman when he had Kashoggi assassinated. There was a lot of ridicule, which Trump hates. He took one for the crown. Trump may want low oil prices because they would directly appeal to his base in an election year. He doesn't seem to think about how his bowling pin sort of shoot from the hip strategy comes with pin action. He could come up with a way to take care of some of the overindebted frackers, so that they could ramp down on production. Then, Trump could actually offer Vlad something. You know, they pay farmers not to farm sometimes, too. When Trump gets overwhelmed he tweets stuff in the middle of the night. He may be staying up nights for a while.

[Outcast_Searcher]

$this->bbcode_second_pass_quote('evilgenius', '')$this->bbcode_second_pass_quote('wildbourgman', 'I')f we have any short sellers here I suggest linking up to some social media with some oilfield folks. Get a roughneck facebook friend.

When the first drill ship that gets shut down and quarantined this will cause severe chaos and severe pain in the offshore drilling space. There you go. I can't say much more than that at this point but I think you'll see drilling companies that will be hurt in a major way..

[sparky]

.
......Soo , what will be the net result of crude oil priced at 20$
- the Aramco IPO turn into a turnip ,
- fracking is in a financial nuclear blast zone
- the majors oil companies slash their Research and exploration
- marginal improvement to existing oil fields come under severe review
- Cheap oil is good for the economy but if the economy got the flu that might not be enough
- some oil importing countries will breath a sight of relief at such an unexpected boon
- Saudi Arabia and other oil exporting countries will have to slash their spending , locals will not be impressed

feel free to add any you might think of

[onlooker]

Crude oil down almost 20% . Holy cow
https://www.theglobeandmail.com/investi ... ties/CL*0/

[onlooker]

$this->bbcode_second_pass_quote('onlooker', 'C')rude oil down almost 20% . Holy cow
https://www.theglobeandmail.com/investi ... ties/CL*0/

[shortonoil]

$this->bbcode_second_pass_quote('', '.').....Soo , what will be the net result of crude oil priced at 20$

[onlooker]

$this->bbcode_second_pass_quote('shortonoil', '')$this->bbcode_second_pass_quote('', '.').....Soo , what will be the net result of crude oil priced at 20$

[Pops]

$this->bbcode_second_pass_quote('sparky', '.')
......Soo , what will be the net result of crude oil priced at 20$

[Tanada]

$this->bbcode_second_pass_quote('Pops', '')$this->bbcode_second_pass_quote('sparky', '.')
......Soo , what will be the net result of crude oil priced at 20$

[rockdoc123]

$this->bbcode_second_pass_quote('', 'T')he net result is that now there isn't enough energy remaining to be extracted from a unit of oil to restart the process. The petroleum production process is close to its entropic limit at 84,488 BTU per gallon. The system's "dead state" is near at hand, and it can no longer rid itself of its waste heat.