Is the oil industry in big trouble?

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Is the oil industry in big trouble?

Not really. What you've seen in the last few days are just contracts and investment "delivery contract” swaps (expires today) and no storage capacity availability, so nobody wanted the contracts during the end of contract delivery so the "investors" were like well I don’t want 2m barrels of physical oil and were like “Aaaaah f***ing shit what do you mean you don’t want my contract for delivery, I don’t want physical oil, I just want you to buy my *contract* so I can make money from my bet that oil would go back up or ohh... f**k f**k f**k, oohhh shitfuck, okay here take my contract and I’ll give you money to take delivery of it!!! f**k me!!!!”

It happens every end of futures contract day, or theoretically could and finally did.

Supply of storage is kinda tight, already full they say... so the poor assholes who have any tanks are now being paid to fill them up with oil to sell in some future date. Usually they only make a tiny fraction between taking ownership and delivery of tanks that are full... now it will be lots of money if they can find tanks to store them for ~4-6months

That’s a nice breakdown of who can sell oil at this price and not go belly up broke... lol oil goes back up as soon as their is demand and awhile for the glut to disappear, that’s the bet anyway. Expecting ~5-15x my money if I wanna hold the bet for 6-12months.

Grrr, I hate waiting. Hmm it also goes up if Trump puts tariffs on foreign oil or all the oil fields shutdown because they cannot turn them back on quickly, it’ll take 3-12months depending on the number of fields in full shutdown or years to turn the wells back on..

I think most of these small shale firms are going bankrupt. From what I hear, the production and refining of shale oil was never really profitable. The whole thing is bulit on debt to build assets that can be used to access more money. The whole wealth-building game now is to turn everything into assets. You see the same thing going on with major investors buying up American trailer parks. They buy it and send it to the management business, so you have a nice asset. That's one reason I've never really been into the stock market. It's a hell of a lot simpler + less risky to build an asset than to gamble about stocks. The only time I ever invest in stocks is when I see some sort of asset class being formed or now with major players like Exxon, Mobil, etc. being able to purchase all the small shale companies operations and a year from now being able to make a massive profit if oil get really expensive.

I would look into buying Russian stocks as oil prices increase. What happens right after the US fracking companies turn off production or go out of business? Use history as the guide. After Japan collapsed RAM prices in the late 80's and drove American companies either out of business or into a different product line, the price of RAM skyrocketed to extreme high prices. After all, the only ones left producing RAM were in Japan.

These oil companies will be investing in production equipment. US energy production soared when US oil producers opted to invest in and use several new more economical oil production technologies. Russia will free float the Ruble to absorb oil shocks for the time being. The Russian Central Bank, Ministry of Finance, and Putin are all the same page. The Russians are self-sufficient in many natural resources, including much of the food products. Their agricultural developments are very impressive, and while they are not the largest wheat grower in the world, they have been the world's largest wheat exporters in the last two years. It's crazy what sanctions and tariffs are doing for self-sufficiency. There are several pluses in the economy, and minus just like ours..

I think in 20 years we're going to go nuclear. They've done very significant work into making nuclear safe based on studies of all the accidents throughout history. They've created plans for nuclear reactors that could use our current "waste" and power the country for the next 250 years, safely.

I read an article with quantifiable data on renewable energy opportunities within current solar and wind technology-not just development estimates. In 2019, the decline in solar and wind growth and investment in solar and wind energy have been declining since 2015. Quantifiable-Innovation and technological development have been declining since 2017. There is a reason-the optimum low cost of wind and solar power are reduced. Much of the world does not have enough solar insolation to be economically viable-including the necessary grid and energy storage costs. Wind and solar contribute less than 3% to the world's energy supply, and the supply is already 65 + percent fossil-powered. In certain situations, the cost of renewable energy-the money involved is exploited. Currently, there are no renewable energy sources either economically or energetically capable of offsetting the supporting costs required to sustain the economic status quo of vital petrochemical resource goods.