Energy Stocks

[redaddiction]

I hope these oil prices don't get too bad. I'd hate to see layoffs start to happen. Some say this could be the 1980's all over again. I wonder how long the Saudi's will hold out? Stock prices will drop big tomorrow again i'm sure.

["W"]

Originally Posted by redaddiction

I hope these oil prices don't get too bad. I'd hate to see layoffs start to happen. Some say this could be the 1980's all over again. I wonder how long the Saudi's will hold out? Stock prices will drop big tomorrow again i'm sure.

When I started in the gulf in 2000 the oil prices were 28-32 dollars a bbl

Don't see this lasting or really hurting the oil companies that have been racking back billions since oil boom in. 2003 to now

[redaddiction]

Originally Posted by "W"

When I started in the gulf in 2000 the oil prices were 28-32 dollars a bbl

Don't see this lasting or really hurting the oil companies that have been racking back billions since oil boom in. 2003 to now

I agree somewhat. But the problem is that since there was a boom the last few years, a bunch of companies went into massive debt borrowing money to drill more wells and rapidly expand. Not it's going to bite them in the azz if they can't make their debt obligations. Smaller companies may get bought out cheap by a bigger company or they may just go bankrupt possibly. The next couple months will be scary for some.

[Armand16]

Originally Posted by redaddiction

I agree somewhat. But the problem is that since there was a boom the last few years, a bunch of companies went into massive debt borrowing money to drill more wells and rapidly expand. Not it's going to bite them in the azz if they can't make their debt obligations. Smaller companies may get bought out cheap by a bigger company or they may just go bankrupt possibly. The next couple months will be scary for some.

Have you been purchasing any put options?

[redaddiction]

Originally Posted by Armand16

Have you been purchasing any put options?

No, that's all above my head. Just buying stocks only. I think prices are already pretty discounted and bottomed out mostly. But I say that with a slight uneasiness.

[Mako19]

Originally Posted by "W"

When I started in the gulf in 2000 the oil prices were 28-32 dollars a bbl

Don't see this lasting or really hurting the oil companies that have been racking back billions since oil boom in. 2003 to now

They were drilling for and producing oil at a MUCH lower cost/bbl 14 years ago W.
Some drilling companies are already cold stacking rigs and laying off crews.

No doubt the shale plays where they are fracking on land where it is easy to just stack thr rigd and go count their money will be affected before the GOM. These Major Operators plan these wells years in advance and have so much invested in deepwater projects they cant just cancel the project.

However, if these prices get down to what you mentioned for any length of time and you don't think it will hurt "oil companies" and cause layoffs you need to get your money back from UH for those online accounting courses.