Heavy borrowings: Reserves set to rise to $21b for first time

[nangyale]

Bla bla bla, the oil glut is happening right now, moron. Not in some hypothetical future. And as for your breeding plans, spare the world another regressionist, fossil-fuel obsessed dimwit. Trust me you will be doing the world a favour.

I told you I will not be brought down to your level.
I would have loved it if you would say something personal to me face to face, but alas we are on a net forum and you are shameless.

Anyways since you refuse to do any research. I will help you. Read the following.
The companies facing high debt loads, which include Encana Corp. and Chesapeake Energy Corp., produced 1.1 million barrels of oil a day in the second quarter of this year, according to data compiled by Bloomberg. If more companies file for bankruptcy as Samson did Wednesday, or embrace the kinds of draconian cuts needed to survive, output could fall by 200,000 to 400,000 barrels, Thummel said.

A loss of that much crude would be the steepest U.S. decline since 1989, about the amount of oil from Oklahoma, the sixth-largest producing state, which pumped 356,000 barrels a day in June, government data show.

U.S. Shale Drillers Are Drowning in Debt - Bloomberg Business

and this from the FT.

US shale producers reported a cash outflow of more than $30bn in the first half of the year, in a sign of the challenges facing the US’s once-booming industry as the slump in oil prices begins to take effect.

The shortfall points to a rise in bankruptcies and restructurings in the US shale oil industry, which has expanded rapidly in the past seven years but has never covered its capital expenditure from its cash flow.

http://www.ft.com/cms/s/0/5a8c9a4c-54b0-11e5-8642-453585f2cfcd.html

Do you want me to continue drip-feeding you or is that enough.

 

[Lurch Adams]

I told you I will not be brought down to your level.
I would have loved it if you would say something personal to me face to face, but alas we are on a net forum and you are shameless.

Anyways since you refuse to do any research. I will help you. Read the following.
The companies facing high debt loads, which include Encana Corp. and Chesapeake Energy Corp., produced 1.1 million barrels of oil a day in the second quarter of this year, according to data compiled by Bloomberg. If more companies file for bankruptcy as Samson did Wednesday, or embrace the kinds of draconian cuts needed to survive, output could fall by 200,000 to 400,000 barrels, Thummel said.

A loss of that much crude would be the steepest U.S. decline since 1989, about the amount of oil from Oklahoma, the sixth-largest producing state, which pumped 356,000 barrels a day in June, government data show.

U.S. Shale Drillers Are Drowning in Debt - Bloomberg Business

and this from the FT.

US shale producers reported a cash outflow of more than $30bn in the first half of the year, in a sign of the challenges facing the US’s once-booming industry as the slump in oil prices begins to take effect.

The shortfall points to a rise in bankruptcies and restructurings in the US shale oil industry, which has expanded rapidly in the past seven years but has never covered its capital expenditure from its cash flow.

http://www.ft.com/cms/s/0/5a8c9a4c-54b0-11e5-8642-453585f2cfcd.html

Do you want me to continue drip-feeding you or is that enough.

All this indicates what, Einstein? That there is an oil glut that is making drilling a loss-making proposition. Your inference is that all oil producers will come together and agree to cut production. Good luck with that. Russia, US and OPEC do not see eye-to-eye. And the Saudi effort to squeeze the other players out of the market by over-supplying is bound to fail.

 

[nangyale]

All this indicates what, Einstein? That there is an oil glut that is making drilling a loss-making proposition. Your inference is that all oil producers will come together and agree to cut production. Good luck with that. Russia, US and OPEC do not see eye-to-eye. And the Saudi effort to squeeze the other players out of the market by over-supplying is bound to fail.

No my point is that the shale-oil boom is unsustainable. If the price of oil remain the same or further decrease the bankruptcies will only increase and shale-oil production decrease. Eventually leading to stabilization in the oil market.
Therefore it is a good time to buy more oil now as the prices won't stay low forever.
Something which is very difficult for you to understand. I just wonder why?

 

[Lurch Adams]

No my point is that the shale-oil boom is unsustainable. If the price of oil remain the same or further decrease the bankruptcies will only increase and shale-oil production decrease. Eventually leading to stabilization in the oil market.
Therefore it is a good time to buy more oil now as the prices won't stay low forever.
Something which is very difficult for you to understand. I just wonder why?

You just rehashed a piece that was fronted by Saudi oil. All that the bankruptcies will lead to is consolidation in the industry. Smaller players will be bought out by larger players. Experimental drilling will stop. But that will not reduce the glut in the oil market. Oil industry has been run on a high profit margin model. It has been adopting to the low margin model of late, and will continue to do so. There are industries that run on less than 5% profit margin. Oil industry has been operating on a much higher margin for decades now. Volumes will drive the margin now, not the other way around.

Plus, China's imminent slowdown is not going to do any wonders to the oil demand anytime soon. So overall, anyone betting on high oil prices will lose. Oil has entered a permanent downward spiral.

 

[WishLivePak]

Bhaijaan is 20% growth expectations achievable? Can you imagine the # of policy decisions need to be taken and BOLD initiatives required even to reach 10% by mistake?

Just asking, no offence.

If our black economy starts being accounted, easy

But then this would be the case for many countries.

 

[skyisthelimit]

If our black economy starts being accounted, easy

But then this would be the case for many countries.

This problem is for almost all Asian countries. We all suffer from huge black money problems. If we are successful in eliminating even half of such practices, it will surely have a positive impact on our economies.

 

[nangyale]

You just rehashed a piece that was fronted by Saudi oil. All that the bankruptcies will lead to is consolidation in the industry. Smaller players will be bought out by larger players. Experimental drilling will stop. But that will not reduce the glut in the oil market. Oil industry has been run on a high profit margin model. It has been adopting to the low margin model of late, and will continue to do so. There are industries that run on less than 5% profit margin. Oil industry has been operating on a much higher margin for decades now. Volumes will drive the margin now, not the other way around.

Plus, China's imminent slowdown is not going to do any wonders to the oil demand anytime soon. So overall, anyone betting on high oil prices will lose. Oil has entered a permanent downward spiral.

There's low profit margin, there's no profit and then there's negative.
Any further decline in oil price will make a lot of the shale-oil currently flooding the market un-extractable. Resulting in market consolidation.
Once more before you hit the reply button again, do some research on how much it costs to extract oil in the Gulf, in Russia and Shale. It will help you a lot.

 

[Lurch Adams]

There's low profit margin, there's no profit and then there's negative.
Any further decline in oil price will make a lot of the shale-oil currently flooding the market un-extractable. Resulting in market consolidation.
Once more before you hit the reply button again, do some research on how much it costs to extract oil in the Gulf, in Russia and Shale. It will help you a lot.

Listen, the great shale oil bust was a news floated around May/June. Apparently, according to the Saudis, shale production was going to collapse any moment. since then, Brent and NyMex have dropped over 30%. The reason why these companies are going bankrupt is not because their current extraction costs are higher than the price of oil, but because having bet long on their options prices, they are having to sell much cheaper than they initially expected. As of now, people are placing options for $30 for sale in March 2016. Everyone who is placing options for 2016 is doing so at lower prices than current ones.

Surge In Options Shows Bet On Further Oil Price Falls Into 2016 - NDTVProfit.com

Now tell me, should we trust the people who stake billions of dollars in trading futures,or your "gut instinct"? Hell, you don't even know that people don't "store" oil anymore. Pakistan is free to put options for next year to buy oil even cheaper than it is right now. Have you even heard the word "options", by the way?

You got irritated because how dare a lowly Indian dole out anything to an all-knowing Pakistani, so you decided to butt into a conversation and give your ignorant two-pennies worth of dipshit. I know that PDF is not exactly a bastion of intellect, but your voodoo economics is a bit too much, padre.

 

[nangyale]

Listen, the great shale oil bust was a news floated around May/June. Apparently, according to the Saudis, shale production was going to collapse any moment. since then, Brent and NyMex have dropped over 30%. The reason why these companies are going bankrupt is not because their current extraction costs are higher than the price of oil, but because having bet long on their options prices, they are having to sell much cheaper than they initially expected. As of now, people are placing options for $30 for sale in March 2016. Everyone who is placing options for 2016 is doing so at lower prices than current ones.

Surge In Options Shows Bet On Further Oil Price Falls Into 2016 - NDTVProfit.com

Now tell me, should we trust the people who stake billions of dollars in trading futures,or your "gut instinct"? Hell, you don't even know that people don't "store" oil anymore. Pakistan is free to put options for next year to buy oil even cheaper than it is right now. Have you even heard the word "options", by the way?

You got irritated because how dare a lowly Indian dole out anything to an all-knowing Pakistani, so you decided to butt into a conversation and give your ignorant two-pennies worth of dipshit. I know that PDF is not exactly a bastion of intellect, but your voodoo economics is a bit too much, padre.

The links that I gave you are both from September. Did you even read them?

 

[Lurch Adams]

The links that I gave you are both from September. Did you even read them?

So that somehow disproves the fact that all options being placed today are for lower oil prices in 2016? Go ahead, try to buy time, I don't mind.

 

[nangyale]

So that somehow disproves the fact that all options being placed today are for lower oil prices in 2016? Go ahead, try to buy time, I don't mind.

It just means that what you are saying is wrong and that you have a very low credibility.

 

[Lurch Adams]

It just means that what you are saying is wrong and that you have a very low credibility.

It just means that you do not even know what options are. You are a dimwit who wants to "store" oil. Take a hike, moron.

 

[nangyale]

It just means that you do not even know what options are. You are a dimwit who wants to "store" oil. Take a hike, moron.

and you don't know what extraction cost and sale price is.

Don't quote me again. I have no time for uncivilized imbeciles.

 

[Rajaraja Chola]

The solar, wind, LNG power plants are fine, but the coal-fired plants should simply not allowed. They are heavily polluting. China is offering help with coal power plants. Ask them a simple question - then why are phasing them out in 2020?



Don't know about the status, so cannot comment.



The reserve includes money from loans, the recent bond-selling spree, and FII investment which are all liabilities. For the first two, Pakistan will actually have to pay hard currency as interest payments.



True. No need to store though, just shop for better deals!



Didn't know about that one. Should reduce overheads and make gas cheaper. Also helps make better case for international connectivity.



Give it time. Not much ever happens in 1-3 years anywhere. Singapore took a good 30 years.



Again, hopefully no coal plants. What's the point of building power plants to pollute the environment?

U are wrong. Developing countries like India and Pakistan and Africa need coal. If the Developed nations care about us, then they should provide technologies at a reduced cost, which they wont and dont.
They had polluted all the world, and now asking us to save the world, with many of our population in proverty.

Can u believe America which has 1-4th of population of India, is creating waste 3 times more than the rest of the world combined together.

 

[jaunty]

why don't Pakistan negotiate favorable loan condition from china, i m sure they provide it with lending rate less then market, seeing the special relation between two countries.

Seriously! China has trillions of dollars in forex reserves, way more than they would ever need. A few billion dollars should be pocket change for them. How about helping out their iron brother in need?