Thread regarding Anadarko Petroleum Corp. layoffs

The hard truth - you're a commodity in a commodity business controlled by those who hate you way of life and you are victims of your won success

No doubt this round of layoffs will challenge conservative values and beliefs of many at APC, i.e. that your own hard work, faith and special skills helped you achieve the American dream. Unfortunately, the reality is that your destiny is controlled by a group of Islamists and very little by you. If Saudi Arabia decides to keep prices high, then you make a bonus. If they decide to recapture market share and lower prices, then you lose your job. The reality is that that well being of those in the oil patch is directly correlated to how much money most of America's enemies make - Russia, Iran, ISIS, and the not-so democratic fiefdoms of the Middle East. High oil prices are actually bad for our country for mre than just geo-policial reasons.

And it's not coming back like people on here think. You are victims of your own success. By uncovering a large domestic supply, you have guaranteed that prices will remain low. As soon as prices go up, market entrants are encouraged, flooding the market with supply once again. Prices might go up a bit, but they will not return anywhere near $70-$100 per barrel. The new equilibrium prices is much lower. Saudi Arabia has learned that high prices, while good in the short term for them, invite too much competition which puts their only source of revenue at too great a risk.

by
| 2028 views | | 4 replies (last March 15, 2016) | Reply
Post ID: @OP+GmnGoBf

4 replies (most recent on top)

“If prices keep going up, U.S. production from shale producers is extremely responsive,” Jamie Webster, vice president of crude markets at IHS Energy, said in a Bloomberg Television interview. “Falling U.S. production is the key dynamic you need to get supply to equal demand, and that might not actually happen,” meaning prices could fall again.

http://www.bloomberg.com/news/articles/2016-03-15/if-oil-prices-have-hit-bottom-the-top-may-not-be-too-far-away

by
| | Reply
Post ID: @4gtb+GmnGoBf

Kind of true.... Except you forgot to factor in the break even cost. Just because we know its there doesn't mean you can make money developing it. This time next year $70 is the new number.

by
| | Reply
Post ID: @4cie+GmnGoBf

It is: "may the Lord infest your enemies arse with the fleas of 10,000 camels and make their arms too short to scratch." Then everyone shoots scotch. That is how they do it in Aberdeen.

by
| | Reply
Post ID: @unf+GmnGoBf

May the fleas of one thousand camels find your tent.

by
| | Reply
Post ID: @azk+GmnGoBf

Post a reply

: