Price of gas update...
Jan 7th 2015, 11:19 pm
#3003
The worse half of Weeze
Joined: Mar 2012
Location: Back in TX
Posts: 3,231
Re: Price of gas update...
If you look at the "strip" price you will see a very slow recovery, however in 2008 we got from $30 to $70 within 12 months. I believe this will be similar. I don't see anyone in Canada slowing down except in the event of specific company bankruptcy (one pretty much went that way today).
The rumour I heard today was that Saudi wanted cuts and approached Russia to match cuts. Russia refused. Iran is trying to negotiate for both to cut. I imagine Russia may make the relaxation of sanctions as a result of Crimea part of this yet.
The rumour I heard today was that Saudi wanted cuts and approached Russia to match cuts. Russia refused. Iran is trying to negotiate for both to cut. I imagine Russia may make the relaxation of sanctions as a result of Crimea part of this yet.
Jan 7th 2015, 11:34 pm
#3004
Lost in BE Cyberspace
Joined: Jun 2008
Location: San Francisco Bay Area
Posts: 10,678
Re: Price of gas update...
If you look at the "strip" price you will see a very slow recovery, however in 2008 we got from $30 to $70 within 12 months. I believe this will be similar. I don't see anyone in Canada slowing down except in the event of specific company bankruptcy (one pretty much went that way today).
The rumour I heard today was that Saudi wanted cuts and approached Russia to match cuts. Russia refused. Iran is trying to negotiate for both to cut. I imagine Russia may make the relaxation of sanctions as a result of Crimea part of this yet.
The rumour I heard today was that Saudi wanted cuts and approached Russia to match cuts. Russia refused. Iran is trying to negotiate for both to cut. I imagine Russia may make the relaxation of sanctions as a result of Crimea part of this yet.
“Starting from the summer level of around $110 per barrel (for Brent), the fall to $60 is worth some $1.65-trillion, or 2 per cent of world GDP,” he said.
“A further decline to $40 would lift these figures to $2.3-trillion and 2.8 per cent, respectively. The net boost to global demand will be smaller than these numbers, as oil consumers are spenders too, but it should still be substantially positive.”
Bottom of the barrel: The fallout if oil hits $40 - The Globe and Mail
Jan 8th 2015, 12:12 am
#3005
The worse half of Weeze
Joined: Mar 2012
Location: Back in TX
Posts: 3,231
Re: Price of gas update...
It currently has to be tough in the oil and gas industry trying to figure out what to do. These are some big numbers.
“Starting from the summer level of around $110 per barrel (for Brent), the fall to $60 is worth some $1.65-trillion, or 2 per cent of world GDP,” he said.
“A further decline to $40 would lift these figures to $2.3-trillion and 2.8 per cent, respectively. The net boost to global demand will be smaller than these numbers, as oil consumers are spenders too, but it should still be substantially positive.”
Bottom of the barrel: The fallout if oil hits $40 - The Globe and Mail
“Starting from the summer level of around $110 per barrel (for Brent), the fall to $60 is worth some $1.65-trillion, or 2 per cent of world GDP,” he said.
“A further decline to $40 would lift these figures to $2.3-trillion and 2.8 per cent, respectively. The net boost to global demand will be smaller than these numbers, as oil consumers are spenders too, but it should still be substantially positive.”
Bottom of the barrel: The fallout if oil hits $40 - The Globe and Mail
Note that it will be really tough for some companies though.
Jan 8th 2015, 1:21 am
#3006
Account Closed
Joined: Jan 2006
Posts: 0
Re: Price of gas update...
Hit the 1.00/liter mark today. It's a catch 22 for Canada, hurts the Canadian dollar, but helps other sectors like tourism since it becomes cheaper for American again to come and visit, but of course hurts all the oil jobs.
Layoff's have started in the oil fields, and supporting industries have also started to lay off and downsize, and rents going down, so certainly not good for those provinces. But doesn't appear to be large scale considering the news only mentioned it at the end and only briefly.
BC will benefit better with a lower dollar since tourism is such a huge industry here.
They had a gas station owner on TV tonight, he is even happy to see lower prices, he is selling more gas vs last year at this time, and higher sales is putting more money into his pocket.
Layoff's have started in the oil fields, and supporting industries have also started to lay off and downsize, and rents going down, so certainly not good for those provinces. But doesn't appear to be large scale considering the news only mentioned it at the end and only briefly.
BC will benefit better with a lower dollar since tourism is such a huge industry here.
They had a gas station owner on TV tonight, he is even happy to see lower prices, he is selling more gas vs last year at this time, and higher sales is putting more money into his pocket.
Jan 8th 2015, 1:43 am
#3007
Joined: Dec 2001
Location: Dixie, ex UK
Posts: 52,448
Re: Price of gas update...
Jan 8th 2015, 1:05 pm
#3009
Joined: Dec 2001
Location: Dixie, ex UK
Posts: 52,448
Jan 8th 2015, 1:18 pm
#3010
Wolf In Sheeps Clothing
Joined: Sep 2008
Location: San Antonio, TX
Posts: 947
