Jim Hawthorne

Big Oil: Dark Skies Ahead?

SeekingTruth raises many good points.
I would add that the problem for many oil companies goes well beyond development costs versus price of crude oil!

The real dilemma facing many of the oils is that they borrowed (and spent) a fortune on new lease acquisitions, buy-outs/mergers, new development projects and revivals of dormant ones. Many are now buried in debt they piled on with the assumption that oil below $100/Bbl was a thing of the past!

Be careful out there, as this sector is a virtual minefield!

On Feb 07 09:46 AM SeekingTruth wrote:

> I appreciate it when anyone with good knowledge can help me understand
> the flaws, threats, and weaknesses of ANY investment , as well as
> the opportunities, of course..
>
> Naturally, one must always assess the factual basis and background
> of any advice or opinion as best as one can.
>
> Recent articles about Devon Energy is a case in point, and after
> watching the price decline, few will argue with the warnings now,
> with or without the article's effects as a contributory factor.

>
>
> Some have suggested that it will take around $55 /BL to shore up
> the balance sheets of the oil companies on a forward basis. If so,
> rallies in the oil stocks should be treated with suspicion unless
> you think oil prices will reach at least that level in the next two
> or three quarters (as it very well could), and there's the rub, because
> it might not.
>
> A good and useful article as any bit of solid info helps in some
> way, and it is always the individual investor's responsibility to
> supplement the info as necessary.