BUSTED midland/odessa tx

[Blueeyedkitten]

I remember once upon a time say 2012 , when oil was 100 a barrel and midland Odessa was swarming with people if anyone ever saw it turning out this way in 2015. I knew it was totally normal at 70 , but even when it hit 60 I noticed the difference it made as far as layoffs. Every company man or banker I've ever met would swear there was 20 years left of the boom. Of course since it began oil does double triple fake-outs , but where will be the new top? Is oil going the way of coal? Its amazing to see how intertwined oil is to the global economy that it may eventually drag us into another reccesion. All it really takes will be for a large oil company to go under for oil to go up. But until the fundamentals change........

[westexDD]

Production is trailing off now just slightly faster than expected now. So that with the natural increase demand due to global growth it'll come back like always. Once the demand/supply lines cross though it'll be another hard boom. There's been nearly no money spent on infrastructure the last two years so that'll cause even higher demand I'm hoping. For now it's all about survival until the next boom

[Blueeyedkitten]

With counties like Israel who just got sanctions lifted are flooding the market it pushes oil down . thats what I believe is part of the reason oil crashed .Everyone flooding the market naturally it becomes less valuable. The Saudi's can make ridiculous profit . hell it costs them 10$ to get it out of the ground. In a way with gas prices so low people are hitting the road and gassing up I'm assuming the demand is there. I believe oil can on a level be manipulated to whatever they want it to be. I think this will be a short bust, hopefully. I remember Obama saying if companies weren't drilling as much as possible they would lose their license. I'm starting to wonder if it's all a political tool. As oil does fund criminal , and terrorist activity abroad. Sadly if we have a war and go oil independent that would surely made oil spike. I mean remember the last year of bushes presidency oil hit 140 if I'm correct.

[westexDD]

Not sure on the "short bust" there. It's already one of the longest, 2 years now this summer. It's looking like the mid 80s bust according to older hands. It was Iran not Israel that had oil sanctions. Their oil was on the market before being sold under the table if you will. Only now it's being accounted for. Oil E&P companies don't have licensus to drill, what they have is permits to drill on certain blocks of land that will run out if they don't keep up their drilling but at these prices it's not feasible. The Permian basin cost to produce is 35-45 depending on the company. Saudi does produce at a VERY low cost but their oil also funds their government by up to 85%. Ours is funded by oil by only 5%. So Saudi needs that $100 oil to fund giving their citizens their govt checks so that's what will kill them in the long run hopefully. Yes, oil was $147 at its highest with the Bush administration. That bust was more of the energy/housing/financial metldown. This is simply a supply/demand bust with world economies slowing down. It will get better, it always does. Just have to ride the roller coaster

[vengence1]

I'm glad there was bust! It's a reality check. Boomtown rats thinking there's no end to it, wrong players! We are stuck with the thieves in a lot of areas but if few of them OD or get shot then they will wise up and move on to big cities where they can get fixes or free methadone. I have lived through a few bust in my years and I like seeing the welders sitting around bars mid day and sports cars for sale cheap! Don't get mad for personal ignorance or honesty folks, the money was great when it was here but nobody forced them to live like no tomorrow! I did without then and life hasn't changed for me prepare for the worst and hope for the best has always got me by. Next time I am having a beer and some sap says "one more boom and I won't waste it!" I'm going to jail....that's what happens when you throat punch someone!