Seeking Alpha

More on yesterday's Goldman oil call: It includes a cool chart plotting the breakeven point on...

More on yesterday's Goldman oil call: It includes a cool chart plotting the breakeven point on all of the planet's major oil projects. Goldman estimates the industry needs $115 oil to be cash flow neutral on its exploration vs. just $84 four years ago. "Further capex growth from current levels will likely be more constrained unless oil prices move higher."
Comments (7)
  • In other words: Four-Dollar gas is a new floor for Regular Gasoline?
    Bernanke's Printing funny money does have it's side effects...
    19 Oct 2012, 01:01 PM Reply Like
  • Four $? Try $5 if you live in Calafornie!

     

    We are approaching the time to storm the barricades. G.S. first.
    19 Oct 2012, 01:22 PM Reply Like
  • I bet it's about 10 $ in some countries of Europe ( Italy ). Meanwhile they use "mopeds" and leave their Ferraris in the garage. They CAN do it, thanks to commuting short distances, in Europe. It's not much to see with market regulations. It's taxes regulated, as everyone ( ? ) knows too much tax, kills the tax. The same car is eventually a good 1/3 more expensive in Europe. Yes a BMW is much cheaper in the US. What the "rulers" seem to be unaware in Europe for long, is people have a LIMITED income, no money is falling from the sky, except for themselves could be. So that simple, when people are squeezed to pay for taxes, there is LESS left over to buy goods. In turn, less goods need to be produced, means less jobs. Then less jobs, less purchase and less money going for tax, and so on...Henry Ford was quoting: " I pay my workers a fair wage, as they are my CUSTOMERS "... Himself could have gotten ill rich instead. What for ? He made him RICH ENOUGH and I see today the company he created is still going STRONG...
    Coming back to how expensive the price of oil should be, easy: as expensive as necessary for the oil companies to make money, not to LOSE money everyday. Yes the proven reserves on earth are huge, and we might go for almost a century more on that. So far we are ready to pay. Today it would need 115 $ on crude to balance the sheets. Tomorrow 200, then 300 on the hardest to recover proven results...IF you are ready to pay, we'll go on with gasoline. If it hurts too much, no need yet to fit a nuke plant in your car: the proven reserves of Natural Gas are much much larger, than those of oil, and much much cheaper on extraction. Gasoline to rise at the filling station ? I think so: I am on CALL 40 USO... :-)
    20 Oct 2012, 03:20 AM Reply Like
  • bot some iez today at 49.84
    31 Oct 2012, 11:03 AM Reply Like
  • bot some iez today at 48.51
    12 Nov 2012, 12:18 PM Reply Like
  • bot some iez today at 47.32
    16 Nov 2012, 11:42 AM Reply Like
  • took some iez profits today at 48.81
    19 Nov 2012, 10:09 AM Reply Like
DJIA (DIA) S&P 500 (SPY)