A Complete Waste of Space

Here ya go Slick....tell another'n.

The price of U.S. crude fell below $27 a barrel amid a global glut in oil supplies that seems to be getting worse. That's the lowest price since May 2003 and a far cry from the $100 a barrel it fetched in the summer of 2014.

Yup...Slick, I know..what you said, it was the opposite. Just wondering, how bad yer takin it in the hine end...'stock wise'...

actually bought a bunch of Exxon five years back at 62 bucks a share. It closed today at 70, or close to it. All the while paying me dividends. You see, that whole oil thing is complex. What you are about to watch is BP, Exxon, Shell, The Saudis, etc, buy up a ton of small producers, their leases, their equipment, etc. The big boys have been sitting on HUGE cash for a decade or more, through various downturns. They'll be fine.

now, what was the 'lie' I told??

and the buying process started this morning. Exxon Mobil and PNC financial primarily. You see, Pud, part of what you don't get about Exxon is the sheer predictability. They run a range from 65-100, once in a while popping over or under, but historically quite rarely. At 75 per share, they pay a dividend EVERY QUARTER, adding up to around 3.5% annually. Likewise, many bank stocks, even with prices up, pay 3% dividends. Buying them after a correction like this is like putting money in a bank account that pays 5% interest. Easy money, but sort of like a poker game. Helps to show up at the table with more money and making money becomes easier.

Pudster, Callmeshit is an idiot.

He says he has enough oil...to rival a greased pig or any future dividend. He should'a bought the pig.

what was the lie, again, Pud??

Oh, and I bought 1500 more shares of Exxon-Mobil on the Weds close. Sweeeeeeeeet!

Related: Forget $20 - Oil Prices At $8 Per Barrel In Canada

While low energy prices are thought to provide a boost to the global economy as consumers benefit from lower costs, there are growing signs that the dramatic collapse in oil prices – so sudden and so severe – is actually creating economic headwinds. The oil and gas industry spent $200 billion on drilling, refining, and new equipment in 2013, and the sharp cutback in spending is being felt beyond just the oil patch. Last week Wood Mackenzie estimated that $380 billion worth of oil and gas projects were scrapped by the industry.

In The New York Times on January 16, Paul Krugman explored the issue. Oil and gas companies start to have liquidity problems when oil prices crash by 70 percent in less than two years. The drop off in spending hurts broader industrial activity. Meanwhile, oil-producing countries like Saudi Arabia have to undertake painful austerity.

dirty crude(High Sulfur, heavy) is currently selling for NEGATIVE amounts. In order to keep from paying storage fees, the producers are literally paying buyers around 3-5 dollars per barrel. And yet, Exxon is making huge money, still. Hmmmmm. Still don't understand, do you, Pud?

let me cast it in another light for you, Pud(only bothering because this reality impacts someone from Texas). Look at this as a period of retrenchment, just like the rich make money off of depressions in the stock market. By holding cash, the big companies and sovereign wealth fund can buy up all the small producers, lock stock and barrel, on the cheap. Those are those 'oil producers' Krugman speaks of, NOT GIANT ENERGY CONGLOMERATES.

It's like Golf.
You can't beat a good lie.