Shale Oil Architect Predicts Doom for Some Drillers Amid Slumpbloomberg.com by Harry Weber & Joe Carroll
Mark Papa, the former EOG Resources Inc. chief executive officer who helped create the shale industry more than a decade ago, said drillers are “grievously wounded” ..“From those ashes, you will see the companies that survive, a lot of them will be grievously wounded financially, and the management teams that come out of it will be a lot more conservative..
EOG’s reputation for innovation and efficiency earned it the sobriquet “the Apple of oil.”
“The future is pretty bright for U.S. production, and I could envision the U.S. could be producing 13 to 14 million barrels a day of crude oil,” by 2022, he said. “The future could be a lot brighter than people think.”
http://www.bloomberg.com/news/articles/2016-02-23/shale-oil-architect-predicts-doom-for-some-drillers-amid-slump@ Old_Joe said
Where to invest in Oil ... after it bottoms, of course
Again: the Saudi's can shut down our shale and marginally more-expensive production only as long as they keep their price below our production cost which seems to be somewhere in the $40-50 range. Let's stipulate that we're all geniuses and buy in reasonably close to the bottom. Then what? How does this great price recovery happen so we all get rich?
Old_Joe Old_Joe December 2015 in Fund Discussions
TRY THIS ??
Silver Run Acquisition raises $450 million in year’s biggest I P O‘Blank-check’ company has no operations, but aims to buy bargain oil companies
Published: Feb 23, 2016 6:15 p.m. ET
Amid an otherwise frozen market for initial public offerings, Silver Run Acquisition Corp. raised $450 million in an upsized offering at $10 a share late Tuesday, according to people familiar with the deal. It hopes to snap up oil and gas assets on the cheap, according to offering documents. The private-equity-backed company has no assets or operations yet,
but its chief executive, Mark Papa, was one of the most successful executives in the U.S. shale-drilling boom.
,,the units will be listed on the NASDAQ Capital Market and trade under the ticker symbol "SRAQU" beginning February 24, 2016. Each unit consists of one share of the Company's Class A common stock and one-third of one warrant, each whole warrant enabling the holder thereof to purchase one whole share of the Class A common stock at a price of $11.50 per share. Once the securities comprising the units begin separate trading, the Class A common stock and warrants are expected to be listed on the NASDAQ Stock Market under the symbols "SRAQ" and "SRAQW," respectively.
http://www.marketwatch.com/story/silver-run-acquisition-raises-450-million-in-years-biggest-ipo-2016-02-23?siteid=YAHOOBhttp://www.prnewswire.com/news-releases/silver-run-acquisition-corporation-announces-pricing-of-450000000-initial-public-offering-300224982.html@ Old_Joe For your "fun money " sleeve ?
Trading today 2/24/2016 with good volume
Silver Run Acquisition Corporation Real Time Stock Quotes
SRAQU
SILVER RUN ACQU 21UTS 10.23 +0 Bid: 10.23 Ask: 10.25
12:46 PM ET, 02/24/2016
Day High:$10.29
Day Low:$10.00
52 Week High:$0.00
52 Week Low:$0.00
Bid Size:4
Ask Size:8
Volume:3,617,121
Read more:
http://www.nasdaq.com/symbol/sraqu/real-time#ixzz416ku48ODhttp://www.nasdaq.com/symbol/sraqu/real-timeAn Unusual Energy IPOPosted on February 24, 2016 by David Ott Acropolis Financial
I’ll bet that when you think of IPOs, or initial public offerings, you think of hot tech stocks like Facebook, Tesla or GoPro (granted, some of these stocks are a little less hot these days).
I do too, so I was a little surprised to read in the Wall Street Journal that the biggest IPO this year is essentially a blank check for what is known as a Special Purpose Acquisition Company, or SPAC.
A SPAC is an unusual breed of investment because in some sense it puts the cart before the horse. Typically, someone starts a business by raising money to fund it. With a SPAC, money is raised in the public offering with the purpose of buying a company.
When someone raises money with a SPAC, it’s like giving them a blank check
I can’t say whether we’re at that point now and I don’t think that this SPAC is a signal that we’ve hit a bottom, but it’s a little bit of evidence that is worth noting.Maybe in two years, he won’t have invested any of the money he raised or maybe everything he buys will sink like a stone, but
I’m interested that he’s interested enough to go raise $450 million from investors with the intent to buy.
http://acrinv.com/an-unusual-energy-ipo/Saudis Still Smiling
Saudi Arabian Oil Minister Ali Al-Naimi laughs during a question and answer session , after the Ministerial Address at the second day of IHS CERAWeek at the Hilton Americas Tuesday, Feb. 23, 2016. ( Michael Ciaglo / Houston Chronicle )
Saudi oil minister: Production cuts are not going to happenPosted on February 23, 2016 | By Collin Eaton
http://fuelfix.com/blog/2016/02/23HOUSTON — Saudi Arabia’s oil minister Ali Al-Naimi ( pictured ) says the world’s biggest oil-producing nations won’t cut their output to support prices, and that it’s more efficient to let the market price out high-cost, inefficient oil producers.
“The producers of these high-cost barrels must find a way to lower their costs, borrow cash or liquidate,” Al-Naimi told a conference hall filled with U.S. energy executives during the second day of IHS Energy CERAWeek.
“It sounds hard, and unfortunately it is, but it is a more efficient way to rebalance markets,” he said. “Cutting low-cost production to subsidize higher-cost supplies only delays an inevitable reckoning.”
“If we can get all the major producers not to add additional barrels, then this high inventory that we have now will probably decline in due time,” he said. “It’s going to take time. It’s not like cutting production. That is not going to happen.”
“Inefficient, uneconomic producers will have to get out,” he said. “This is tough to say, but it’s a fact.”
Al-Naimi said sometime in March oil exporters will have another meeting regarding the production cap, “and probably (will) gather more agreements on freezing.”
“We are not banking on cuts … because there is less trust than normal,” he said.
The oil minister also emphasized Saudi Arabia has not declared war on shale producers, despite speculation in the press. “Our purpose is to satisfy customer demand,” he said.
http://fuelfix.com/blog/2016/02/23/saudi-oil-minister-production-cuts-are-not-going-to-happen/#38138101=14
Comments
[maybe Ted could work his magic with this? http://www.wsj.com/articles/this-years-biggest-ipo-is-a-blank-check-for-the-oil-business-1456242175 ] I suspect one would need to be a "qualified investor" to purchase the units, but..... maybe not.