Airline Pilot Central Forums - Any "Latest & Greatest" about Delta?

It's not just substitutes, Saudi's realize that $100+ oil was fueling fracking development not just in the US but in other parts of the world. They realize that $75 barrel of oil will do more to put a damper on fracking and energy development than any regulation can. You are already hearing talk of some major #&^(# hurt in the midwest and plains states that were set up for oil at considerably higher levels.

Funny though, you never quite feel the sympathy for a struggling oil industry throughout the press as you do when oil is going up....

I heard the $60 barrel Saudi oil, is the breaking point for US/Canadian Oil Shale....

RockyBoy

11-28-2014 08:36 AM

Quote:

Originally Posted by BigGuns (Post 1772252)

I heard the $60 barrel Saudi oil, is the breaking point for US/Canadian Oil Shale....

No companies in the Bakken have publicly stated what the breaking point is. I've heard anywhere from $40 to $75. Hess put out a statement before the OPEC meeting that said if oil prices stay around the $60/bbl range they will cut back 25% in the Bakken in 2015. That tells you it becomes expensive at $60, but is still profitable or they would cut back more than 25%. I'd imagine the big guys (Hess, Continental, Conoco, Whiting) will cut back slightly in the Bakken if the prices stay down. The small guys up there (QEP, Newfield, Halcon) will pack up and leave.

In any case if prices stay low you will see the domestic U.S. shale producers cut back. How much is the big question nobody really knows.

buzzpat

11-28-2014 08:51 AM

Quote:

Originally Posted by forgot to bid (Post 1772107)

Yeah, she got in trouble didn't she? I can't remember and don't want to get in trouble for looking it up.

Alright. Gus for you, Saban for me.

Now I do think Newk and Buzzpat should have to play along.

If Newk's team loses to Buzzpats team:

http://www.thesportsbank.net/core/wp...BayPackers.jpg

:D

NewK's team always loses to my team. And, as long as they keep throwing Smoking Jay Cutler out there, they'll continue to.;)

newKnow

11-28-2014 09:06 AM

Quote:

Originally Posted by forgot to bid (Post 1772107)

Yeah, she got in trouble didn't she? I can't remember and don't want to get in trouble for looking it up.

Alright. Gus for you, Saban for me.

Now I do think Newk and Buzzpat should have to play along.

If Newk's team loses to Buzzpats team:

If Buzzpat's team loses to Newks:

http://www.traceinternational.org/wp...a-862x1173.jpg

:D

Buzz's team always loses to my team. And, as long as they keep screwing up the immigration issue, they'll continue to. ;)

satchip

11-28-2014 09:42 AM

Quote:

Originally Posted by newKnow (Post 1772293)

Buzz's team always loses to my team. And, as long as they keep screwing up the immigration issue, they'll continue to. ;)

You're right, but not the way you think!

Mesabah

11-28-2014 10:13 AM

Looking at where oil is going over the next year or so, Delta $6-8 billion in profits next year.

RockyBoy

11-28-2014 10:17 AM

http://finance.yahoo.com/news/breake...162100905.html

This is a good chart, not sure where the info comes from though. That chart verifies what I've been told and what Hess has said. I doubt we will see sustained prices under $60/bbl. Most of the big U.S. shale producers will keep up what they have been doing the last 5 years.

What has happened is OPEC no longer can manipulate the market and inflate prices because of the U.S. output. That is good for everyone except some of the OPEC countries that need expensive oil to balance budgets. Wonder what $60 oil does to our Trainor investment?

RockyBoy

11-28-2014 10:21 AM

Quote:

Originally Posted by Mesabah (Post 1772334)

Looking at where oil is going over the next year or so, Delta $6-8 billion in profits next year.

Yep.

Holiday loads however were the worst I've seen in years and my sister and her family decided not to fly over Christmas. RT tickets are $1,200 each even a month out for the flights they need. Loads on the flights they were looking at are less than 40% right now.

If oil prices drop down we may see price wars begin because not many people will pay $1,200 RT for tickets in the U.S.

Mesabah

11-28-2014 10:34 AM

OPEC is part of it, but look at the dollar, ever since QE ended its been strengthening day by day.

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