Hey Oil Barons.......

[Fudge Nuggets 19478]

Cool.  So “fuck the environment” still holds.  Since it’s so hard to do anything about it we might as well not try.  Got it.

[Guest Lobo]

 

Not sure if this image will show up.  Not exactly "saving the world", but many of these energy companies are embracing lower carbon footprints faster that many realize.  Most of them don't give a shit about how they make their money, they don't actually "love" drilling and carbon-consuming SUV's.  They're energy companies.  They want to make sure that whatever you need heated/cooled/moved/electrified...that it's powered by them and you buy some overpriced soda and chips while you're buying it.  They are energy companies, not oil companies.  Or it's all a gimic, fuck it.  We got ten more years, let's make some cash.

[jeevsie 3790]

17 hours ago, Storm the Field said:

Seen some commentary from CEO's lately talking about the new model for O&G going forward. Based on what PXD and CVX have said:

1. Investors don't want to see any capex for exploration or new production. Focus is solely on retiring debt, maximizing cash flow and paying highest possible dividends. 

2. ESG has a role in #1, but it's primarily due to the poor decisions and wild price volatility seen over the last 7+ years. Nobody wants to get burnt again throwing money at marginal projects right before another price crash. Need "years of stable oil prices" to attract investors. 

3. Because of #1 and #2, even companies well-positioned to spend money on increasing production won't do so until investors indicate that's what they want to see. This will likely lead to higher energy prices for years to come.

Isn't this the same thing they say every time on the way back up?  Until the price reaches a threshold where they just can't help themselves and the money starts a-spending?  The American Dream takes over.  Smaller, more nimble outfits start it off.

[52-80 19377]

1 hour ago, Fudge Nuggets said:

Cool.  So “fuck the environment” still holds.  Since it’s so hard to do anything about it we might as well not try.  Got it.

Nope.  Actually doing something or trying to do something is very different than a token performative gesture which is ESG.  It's the equivalent of sending "thoughts and prayers".  It's a woolly framework with woolly metrics and spawns an industry of ESG consultants and ESG committees that achieve nothing than self-perpetuation. 

Energy companies aren't trying to destroy the environment.  They face monetary, regulatory, and reputational risks.  BP's fuckup cost them more than half of their current day market cap.  Aint nobody got the apetite for that.  All they're trying to do is meet the energy demand of the people.  So you don't have situations like the POTUS insinuating to the public as recent as -- **checks notes** -- yesterday, that there's something fishy with the gasoline price and why it's so high.

 

People want to consume cheap energy.

People don't want to support energy producing activities.

People demonize energy companies for high energy prices.

 

[52-80 19377]

tangent.. i know someone working in a huge software company working out how wonderfully and how much they saved in carbon emissions. 

how?  by quantifying (1) the fact that they stopped distributing DVDs to customers, but providing direct downloads instead;  (2) all the new computers they purchased are more power efficient than before.

sure, they're proactively saving the environment.  has absolutely nothing to do with the fact that nobody wants fucking discs anymore or companies literally dont provide access to discs (and how much carbon does it costs to keep the download platform running?), or you buy new computers because you need them anyway and theyre naturally more efficient because its how progress works.

but now they can tell people theyre way more ESG than they were 5 years ago.  its so disingenuous.

Edited September 17, 2021 by 52-80

[Fudge Nuggets 19478]

Here’s a tip for your friend, no one gives a shit how much better you are today than five years ago. People want an idea how much better you are going to be five years from now.

[MoJames 8258]

3 minutes ago, Fudge Nuggets said:

Here’s a tip for your friend, no one gives a shit how much better you are today than five years ago. People want an idea how much better you are going to be five years from now.

Yeah but does his friend make more money than beeper's buddies?

[Fudge Nuggets 19478]

2 hours ago, Dr. Beeper said:

I’m solely interested in making money. Not your perception of where my (passive) investments will be in 5 years. The ESG edicts from the investment community are laughable. It has nothing to do with people saying “fuck the environment”. Don’t CR Oil Barons. 

No one gives a shit about your passive investments.  I’m referring to a company showing where it is today compared to yesterday instead of showing where it is going.

I’m not CR this any more than you were when you cheered on someone on MSNBC giving total shit to the idea of ESG.  Don’t like it?  Don’t start it.

[Fudge Nuggets 19478]

25 minutes ago, Dr. Beeper said:

CNBC. A guest who is a business school professor at NYU. You inferred I’m some sort of anti environmentalist because I applauded what this guy said. But that is because you’re a sensitive little bitch, looking for a way to enter a thread and CR it all up. Fuck off somewhere else. 

Point out one political idea posted, Rex. 

[torre 1298]

12 minutes ago, Fudge Nuggets said:

Point out one political idea posted, Rex. 

Your motive on this thread is evident to all.

[Fudge Nuggets 19478]

1 hour ago, torre said:

Your motive on this thread is evident to all.

So no political points were posted hence not CRing this thread. Just because someone disagrees doesn’t make it political. 

[Fudge Nuggets 19478]

1 hour ago, Dr. Beeper said:

Then ask to fucking discuss it; don’t wade into a thread showing your ass and expecting CR Circle Jerk treatment.

Everyone in this industry knows what a joke the entire ESG initiative  is. It’s a faux solution, and discourages capital coming into the industry. It’s going to be one of the primary reasons hydrocarbon prices skyrocket and it’s totally unnecessary. 

Talk about being a sensitive little bitch.  

Everyone knows it?  Guess that’s why Shell, BP, Equinor, Total, Chevron etc are at least addressing it.  One peer company is curiously not on that list and it cost them three seats on their own Board of Directors.  And the reason it’s being discussed at those companies is because the capital markets are expecting it which fucks with your idea of discouraging capital into the industry.

No one expects Rex Kramer Energy to get on board but the big boys certainly need to pay attention to what the markets are demanding.

[Fudge Nuggets 19478]

2 hours ago, Dr. Beeper said:

Big boys are being held hostage, and what the big boys do doesn’t preclude me from talking about how idiotic it is, which I will do continually at every opportunity now. 

I have no idea why you would ever want to have significant ownership in, and/or run a public E&P company. They get caught up in nonsense like this. The investment community is a ginormous community filled with many smart people and many sheep. ESG is an initiative that makes no sense but is ruling the day (on a decreasing basis). So majors must react to it. The initiative is weakening as prices rise and it becomes more and more obvious that investment is extremely attractive. Last year, ESG was deemed a barrier to investing in energy - at all. Now that commodity prices are strong, capital is showing their greedy hypocrisy by investing in majors again - if they go through the ESG motions. This is how the investment community backtracks. 

Fair enough.  Who knows, maybe something good will come out of it even if it's not total revolutionary awesomeness.  Every little bit will help and they might find something by accident if nothing else.

[Storm the Field 5367]

Shell selling all of their Permian assets to Conoco to comply with Dutch court ruling. Deal reportedly worth $9.5B.

Having somebody else operate those assets will really reduce emissions! 

[jeevsie 3790]

[tx 3 putt 78759]

5 hours ago, Storm the Field said:

Shell selling all of their Permian assets to Conoco to comply with Dutch court ruling. Deal reportedly worth $9.5B.

Having somebody else operate those assets will really reduce emissions! 

 

where's conoco getting all this money 

[MAROON 446]

2 hours ago, tx 3 putt said:

 

where's conoco getting all this money 

Boomers 

[billfromlaketravis 11869]

15 hours ago, Storm the Field said:

Shell selling all of their Permian assets to Conoco to comply with Dutch court ruling. Deal reportedly worth $9.5B.

Having somebody else operate those assets will really reduce emissions! 

What say the thread, good price? 

It's an all cash deal. 

Edited September 21, 2021 by billfromlaketravis

[Okie State 3889]

 
where's conoco getting all this money 

My guess is laying off employees and selling assets. It's pretty much all they've done for the past several years.

[Fudge Nuggets 19478]

On 9/20/2021 at 5:14 PM, jeevsie said:

Back in the day I was assigned to a Shell project. I enjoyed working with those crazy Dutch bastards. Others that weren’t taking care of business had a hard time dealing with them and didn’t last long. 
 

That’s about all you can ask for. 

[jeevsie 3790]

[The Royal We 3102]

Nat gas ripping this morning.  Up $.41 (almost 8%) to $5.55

WTI up over $75 as well.

The crunch is here boys.

https://www.bloomberg.com/markets/commodities

[Lagunamadre 1975]

1 hour ago, The Royal We said:

Nat gas ripping this morning.  Up $.41 (almost 8%) to $5.55

WTI up over $75 as well.

The crunch is here boys.

https://www.bloomberg.com/markets/commodities

Thank God! Just in the nick of time, was about to default on my F350 and jetski 30 yr. notes. 

[CHIEF 5230]

On 9/16/2021 at 1:57 PM, billfromlaketravis said:

I think a lot of those folks are selling used cars now. 

Selling Real Estate. Made a shit ton in the Barnett, enough to pay cash for everything I own. Mom still has a huge non-participating royalty on 15k acres in Milam county. Her checks have quadrupled with the rise in NG prices. 

CHIEF

[52-80 19377]

37 minutes ago, CHIEF said:

Mom still has a huge non-participating royalty on 15k acres in Milam county. Her checks have quadrupled with the rise in NG prices. 

CHIEF

is she single?

[CHIEF 5230]

1 minute ago, 52-80 said:

is she single?

LOL, widowed. She is beautiful at 71, but has no interest in dating or marrying again. I told her she was too young to spend the rest of her life alone. She said it took 50 years to get my Dad raised right, and does not plan to start over.

CHIEF 

[tx 3 putt 78759]

5 hours ago, CHIEF said:

Selling Real Estate. Made a shit ton in the Barnett, enough to pay cash for everything I own. Mom still has a huge non-participating royalty on 15k acres in Milam county. Her checks have quadrupled with the rise in NG prices*. 

CHIEF

 

if i send you a dick pic, will you forward to your mom ?  thanks

 

*that's awesome man

[Storm the Field 5367]

WTI hit $78 at one point this morning, marking a nearly 7-year high that dates back to Halloween of 2014.

I have a very specific memory of a conversation with a buddy in October 2014 that was fretting about losing his gig as a title attorney b/c the project he was working had a "pull the plug" price of $77.50. 

[The Royal We 3102]

15 minutes ago, Storm the Field said:

WTI hit $78 at one point this morning, marking a nearly 7-year high that dates back to Halloween of 2014.

Damn, that's hard to believe. 

[Armybrat 41448]

Poor old Uncle Frank….. didn’t know he was sitting on $2,000,000 of Black Gold (paid out so far to his descendants today) at his 260 acre North Dakota farm that was being eminent domained  by the federal government.

 

Edited October 4, 2021 by Armybrat

[The Royal We 3102]

28 minutes ago, Dr. Beeper said:

Is it?  

Yes.  It is.  I didn't realize we've been in the shitter that long. 

[DCA_HORN 725]

9 minutes ago, The Royal We said:

Yes.  It is.  I didn't realize we've been in the shitter that long. 

Tis but one dog year.

[Cajun 11780]

On 9/27/2021 at 10:31 AM, The Royal We said:

Nat gas ripping this morning.  Up $.41 (almost 8%) to $5.55

WTI up over $75 as well.

The crunch is here boys.

https://www.bloomberg.com/markets/commodities

Fuckin’ A!

4 new DOs from XTO & 2 from Marathon signed & returned yesterday.

Cause I like to party…

[GringoSalado 1653]

32 minutes ago, Armybrat said:

Poor old Uncle Frank….. didn’t know he was sitting on $2,000,000 of Black Gold (paid out so far to his descendants today) at his 260 acre North Dakota farm that was being eminent domained  by the federal government.

 

 

 

[Eastwood 4394]

Fuckin’ A!
4 new DOs from XTO & 2 from Marathon signed & returned yesterday.
Cause I like to party…

You ever get that thing we talked about a couple years back sorted out or is it still in limbo?

Things are getting very interesting out there, right now. Seems like a lot of the players who kept their powder dry are ready to fire.

[The Royal We 3102]

1 minute ago, Eastwood said:

You ever get that thing we talked about a couple years back sorted out or is it still in limbo?

Things are getting very interesting out there, right now. Seems like a lot of the players who kept their powder dry are ready to fire.

Agreed.  I've got a few clients with patient capital that are loading the boat right now. 

[Fudge Nuggets 19478]

3 minutes ago, The Royal We said:

Agreed.  I've got a few clients with patient capital that are loading the boat right now. 

Typical.  Fuck buying stuff when oil is $30 and NG is less than $2, let’s go all in when oil is $75 and NG is over $5.  Some things will never change.

I do give our man Dr. Rex credit though.  He nutted up when oil was in the shitter and was never going over $40 again in the minds of astute investors.

[The Royal We 3102]

1 minute ago, Fudge Nuggets said:

Typical.  Fuck buying stuff when oil is $30 and NG is less than $2, let’s go all in when oil is $75 and NG is over $5.  Some things will never change.

I do give our man Dr. Rex credit though.  He nutted up when oil was in the shitter and was never going over $40 again in the minds of astute investors.

Good point.  And the main client I have in mind has been buying for the last 12 months, but there are a flurry of deals getting done now that they are all much more expensive.

[Lagunamadre 1975]

4 minutes ago, The Royal We said:

Good point.  And the main client I have in mind has been buying for the last 12 months, but there are a flurry of deals getting done now that they are all much more expensive.

Minerals have gotten very expensive. Hard to buy with how backwardated the curve is right now. Still in the 50's a couple years out.  

[Cajun 11780]

2 hours ago, Eastwood said:

You ever get that thing we talked about a couple years back sorted out or is it still in limbo?

Things are getting very interesting out there, right now. Seems like a lot of the players who kept their powder dry are ready to fire.

Nope, still w/the lawyers.

[DaysOff 8222]

What's up in the UK?

[Guest Lobo]

It's a downstream downstream issue.  They take refined product at port (or internally) and send to regional distribution centers around the UK (rail and pipeline).  And then by tanker truck to the petrol station like the one above.  Only they don't have enough trucks or drivers suddenly to get that last step done.  I guess you could call it a supply chain issue but as others on here can better explain, oil/petrol doesn't behave quite the same way as most other consumer products.  There's a whole other BREXIT labor/import angle here that is probably too political, but then oil and politics go together like salt and pepper.  

If you have a chance today, after that horse gets the smell of idling cars out of its nose...google some pipeline maps between the UK and the Continent.  If the EU wanted to be an asshole, there's a lot they could cut off to the UK in terms of supply.  I think it's just a Covid-19/inflation/better jobs out there/everybody back to normal commuting shitshow that just caught a bunch end use companies off guard and didn't rachet up properly licensed truck drivers. 

Or this was all some labor pool trick by the drivers to drive up their wages, dunno.  They actually have some shady union shit over there too.  I was starting to lean that way when the government said "Fuck waiting on the drivers, have the military do it.  If they can drive a Close Support Tanker thru the hills of Afghanistan, they can negotiate a tanker truck through the streets of Glasgow."  

[MoJames 8258]

20 minutes ago, Dr. Beeper said:

 Crisis. People are gonna be shocked but this is just the beginning of the crisis I have been talking about. Years and years and years of underinvestment and ESG propaganda. 

 

19 minutes ago, Lobo said:

It's a downstream downstream issue.  They take refined product at port (or internally) and send to regional distribution centers around the UK (rail and pipeline).  And then by tanker truck to the petrol station like the one above.  Only they don't have enough trucks or drivers suddenly to get that last step done.  I guess you could call it a supply chain issue but as others on here can better explain, oil/petrol doesn't behave quite the same way as most other consumer products.  There's a whole other BREXIT labor/import angle here that is probably too political, but then oil and politics go together like salt and pepper.  

If you have a chance today, after that horse gets the smell of idling cars out of its nose...google some pipeline maps between the UK and the Continent.  If the EU wanted to be an asshole, there's a lot they could cut off to the UK in terms of supply.  I think it's just a Covid-19/inflation/better jobs out there/everybody back to normal commuting shitshow that just caught a bunch end use companies off guard and didn't rachet up properly licensed truck drivers. 

Or this was all some labor pool trick by the drivers to drive up their wages, dunno.  They actually have some shady union shit over there too.  I was starting to lean that way when the government said "Fuck waiting on the drivers, have the military do it.  If they can drive a Close Support Tanker thru the hills of Afghanistan, they can negotiate a tanker truck through the streets of Glasgow."  

One of these posts is how to educate people on what is going on. The other is straight out of some Facebook group.

[MoJames 8258]

2 minutes ago, Dr. Beeper said:

No, just reality. I study this shit for a living and capitalize on it when appropriate. Not on Facebook or Gram. I am on LinkedIn and the number of anti-vax and pro-Trump posts designed to divide make me sick. Carry on with your generalizations. 

[Neonmoon 38130]

What is ESG propaganda?

Edited October 5, 2021 by Neonmoon

[Horns99 172]

One of these posts is how to educate people on what is going on. The other is straight out of some Facebook group.

N/M


Sent from my iPhone using Tapatalk

[52-80 19377]

4 minutes ago, Neonmoon said:

What is ESG propaganda?

Ill give you an example: the “activist, impact” fund “Engine No. 1”.
 

They made headlines for wrestling board positions from Exxon. Their stated mission is “to reverse climate change; fight gender and racial injustice; and build an economy that is sustainable and inclusive”. 
 

They do it by….launching an ETF that basically mimics the S&P of 500. 
 

So they used promising and emotional language to sway people to invest with them….to do absolutely fuck-all. 
 

 

[DCA_HORN 725]

2 hours ago, Dr. Beeper said:

No, just reality. I study this shit for a living and capitalize on it when appropriate. Not on Facebook or Gram. I am on LinkedIn and the number of anti-vax and pro-Trump posts designed to divide make me sick. Carry on with your generalizations. 

I honestly thought he was talking about Lobo.

[Ridingtosunset 129]

12 minutes ago, DCA_HORN said:

I honestly thought he was talking about Lobo.

#metoo

There's a reason oil is $80 and on its way to $100 and nat gas is soaring in Europe and Asia. And it ain't a lack of truck drivers in UK. 

[Guest Lobo]

I never commented on commodity pricing.  I just plagiarized some shit from Reuter's UK desk (which I find to be better UK reporting to the U.S. than BBC), and then peppered in some shit I've heard from friends at BP.  I'm not a UK petrol expert so I culled some trusted sources.  Domestically, we're bullish on O&G again and going deeper with some endowments.  As of now, the glut in the UK seems to be more end of downstream driven than anything else, but of course-pricing is a huge factor as well.  

My point was when the coalition government said, "Lotta ins, lotta outs...but let's get it on trucks with drivers first before we mess wif' all that"...I kinda took that to mean the most immediate part of the equation is the POS delivery.  Of course they're gonna obfuscate other parts of the chain.  I'll leave it to you oil experts to sort out, was just commenting on trucking logistics, something I've been involved with since I was a boy.  

Somebody asked a question, I kinda did the "if you practice at explaining it, you'll get better at it yourself" teaching deal.  I honestly don't give a fuck about UK petrol.  But it is fascinating to watch this current scenario to play out.  Just like that Suez Canal ship awhile back.  But yeah, crude's creeping up and thank God for it.  Meantime, Queen's Army gotta still get it to the pumps.  After that, fuck 'em.  Let 'em sort their shit out.  If I'm wrong, I admit it, but help me understand why they're pulling anybody who can drive a CRT off duty to help out if their main worry is commodity pricing above hedge contract levels 6 months from now.  Seems like a weird use of the Queen's.

I absolutely agree future pricing down the road, failure to proactively invest, and perhaps even some ESG fervor all have contributing parts in this.  But it just seems like mobilizing the Army to deliver petrol to the end user as they zig-zag across the Island, seems like a weird way to combat those things unless the Benny Hill reboot is even stranger than we all predicted.  

Edited October 5, 2021 by Lobo