When will oil prices go back up

i know it is governemt subsidized but how can the goverment justify it with low oil prices. only drives food thru the roof.

 

The same way they justify everything they waste money on. Some canned line about no amount is to much to spend on our environment.

 

What I don't understand why some of these companies are continuing to drill new wells like oil is $100/bbl. From what I hear, Pioneer is not only drilling like crazy, but building new locations too.

 

A lot of companies are forced to drill so they can meet debt obligations even if they produce at a loss

 

We may want to be careful what we wish for.

This whole economy is fragile as heck....

 

Most of the ones drilling contracted the drilling companies when it was hard to get a rig. They have to pay the contracts for drilling even if they don't drill or get sued. Pioneer is still drilling south of Midland because they hedged their oil at $75 way back when.
Next comes the lease... Some of these companies paid big bucks for some of these leases and if they don't drill them out in a certain agreed upon time they lose the lease and the money they already paid is down the drain.

 

well, i don't think Pioneer is thinking it's going back up for a while:

Pioneer is pulling out of the Eagle Ford but will remain in the Permian Basin for now

After continuing to search for oil long after others had shut down, Irving-based Pioneer Natural Resources on Wednesday announced it is cutting its drilling activity in half this year.

While Pioneer had 24 rigs in working at the end of 2015, the company plans to have only 12 by the middle of 2016, all in the Permian Basin, and pull entirely out of the Eagle Ford Shale play...

you can read the rest of the good news here - http://www.star-telegram.com/news/business/article59660911.html

 

Prices won't see any sort of real and sustained rise until at LEAST 4Q 2016. There are still a lot of holes being drilled and just getting capped at the end of it all. First sign of a sustained rise in prices those caps are getting yanked and there will be a whole new glut of oil coming online. I bet we wont see $60 oil again until 2018 or beyond, as much as I wish that weren't true.

 

Everyday youre home, floor your car, drive, around, and waste fuel, so you have to fill up twice a day. If we all did this, prices would go up!

sarcasm, enjoy the cheap fuel!

 

Thank you Ben,
I'm in Big Lake and in same boat, hold same opinions except I don't think I'll make it to the summer, more like March for me.
We have laid everything down except what we need for lease hold, suspended most projects and emptied the drilling schedule. People are next I'm sure.
I love Arky's comment on a 75k pickup......big shot lol....I have a used pickup, bought here based on need and sure I have a title but by no means am I a big shot......that title belongs to my Superintendent. ( he has a company truck )
Oil prices? Pioneer says 35 and stay alive. I don't know my number but that's probably close. Some of my folks like summer for $50 oil including my CEO......others say after the election. My guy is a wildcat and has 35 years under his belt and came up with Dan Duncan of Enterprise so......I believe him to have some game.

I'm ready for a vacation......been here 2 years. Almost forgot I have a family......it will be nice to be home again.

Good luck hand......I'll see you on the next round