Investing

is now the time to invest in oil stocks?

  • Last Updated:
  • Nov 19th, 2017 6:49 pm
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Jr. Member
Aug 16, 2015
141 posts
12 upvotes
Wow look at that crude build! Im calling it! Crude is going to collapse to 50 or lower. Buying dwt tomorrow.
Jr. Member
Aug 16, 2015
141 posts
12 upvotes
Can they create a 3x leverage short canadian oil companies etf? Just leave out su cnq ipl and transmtn

I'll put my life saving into it.
Member
Jun 28, 2016
207 posts
92 upvotes
kilburn305 wrote:
Nov 14th, 2017 7:14 pm
Wow look at that crude build! Im calling it! Crude is going to collapse to 50 or lower. Buying dwt tomorrow.
API has been wrong about almost every weekly prediction for months. I'm still smarting from the market reaction to the API's fake "monster draw" a couple of weeks ago. I'll wait for EIA to confirm. It would be very odd if we went from a >9 million barrel draw last week to a big build this week. Exports were already low last week, so what would the cause be? Did shale add 2 million bpd of production last week? If so, those Permian guys must be some kind of miracle workers for increasing US production by 20% in a few days. Maybe I should go long EOG. Smiling Face With Open Mouth And Smiling Eyes
Newbie
Nov 25, 2009
86 posts
17 upvotes
Vancouver
Venezuela just defaulted and the Saudi's are unstable, and you guys are thinking of shorting oil? Lol
Jr. Member
Aug 16, 2015
141 posts
12 upvotes
Added first block of HOD. Will consider adding more.

I have CVE anyways so this hedge is necessary.
Deal Addict
User avatar
Dec 21, 2005
4967 posts
308 upvotes
Markham
Anyone following PEY?
Prretty sharp drop from the mid-high 20s to multi-year low of $16...i know nat gas prices out west are sometimes NEGATIVE...but the other nat gas names haven't been hit as hard
:idea: :) :lol: :razz: :D
Deal Expert
User avatar
Sep 19, 2004
20301 posts
3092 upvotes
Waterloo
charliebrown wrote:
Nov 17th, 2017 12:51 pm
Anyone following PEY?
Prretty sharp drop from the mid-high 20s to multi-year low of $16...i know nat gas prices out west are sometimes NEGATIVE...but the other nat gas names haven't been hit as hard
really?
I sadly have BNP and VII, both are basically 52w lows and pretty ugly vs. overall TSX Energy
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Member
Jun 28, 2016
207 posts
92 upvotes
charliebrown wrote:
Nov 17th, 2017 12:51 pm
Anyone following PEY?
Prretty sharp drop from the mid-high 20s to multi-year low of $16...i know nat gas prices out west are sometimes NEGATIVE...but the other nat gas names haven't been hit as hard
The problem with Peyto is that they're increasing their debt and diluting while projecting flat production for next year (the debt and dilution pays for the dividend). If natural gas prices go up a lot, this could be a viable model again, but it cannot be sustained with prices where they are in Western Canada. Note that rising natural gas prices won't solve their problems alone, as the issue is take away capacity. New production is coming in Alberta until 2019 or so, and there are no pipelines to take it away (prices actually went negative for a while when the Transcanada Pipeline was shut for maintenance earlier this year). Worse, Peyto can only even manage their current strategy of diluting and adding debt due to favourable hedges which only last through early 2018 at present. What happens after that if natural gas spot prices are low or the futures strip looks bad? It won't be pretty.
Deal Addict
User avatar
Dec 21, 2005
4967 posts
308 upvotes
Markham
Wavelet wrote:
Nov 18th, 2017 8:37 am
The problem with Peyto is that they're increasing their debt and diluting while projecting flat production for next year (the debt and dilution pays for the dividend). If natural gas prices go up a lot, this could be a viable model again, but it cannot be sustained with prices where they are in Western Canada. Note that rising natural gas prices won't solve their problems alone, as the issue is take away capacity. New production is coming in Alberta until 2019 or so, and there are no pipelines to take it away (prices actually went negative for a while when the Transcanada Pipeline was shut for maintenance earlier this year). Worse, Peyto can only even manage their current strategy of diluting and adding debt due to favourable hedges which only last through early 2018 at present. What happens after that if natural gas spot prices are low or the futures strip looks bad? It won't be pretty.
This might be the first year in a while where Peyto hasn't issued shares. I hope they are able to stay within cashflows to sustain both the dividend and current production. No point to grow 15-25% in daily production if the price is $2. They can still make $ at current prices, but no sense to grow production into the current prices
:idea: :) :lol: :razz: :D
Deal Addict
Nov 2, 2013
4803 posts
902 upvotes
Edmonton, AB
lawonga wrote:
Nov 15th, 2017 1:00 am
Venezuela just defaulted and the Saudi's are unstable, and you guys are thinking of shorting oil? Lol
Well you have the one agency that thinks oil will plummet to $10 because of the EV development, and that is music to the ears of the hippie province BC. Supposingly people (especially the ones who worship Tesla) think electric transportation will become all transportation, solar panels will replace all other electricity generating sources, and fuel demand = oil demand.

The concept of electric vehicles and solar panels is cool, but it won't 100% replace their former counterparts. If I could choose, I'd pick a hybrid vehicle where I can run on power but still have the gas portion when I run out of power. As for solar power it's far too inefficient to be practical in all scenarios and producing and disposing of their equipment is hard on the environment, especially the mining and disposal of the rare earth metals and acids.
Member
User avatar
Oct 14, 2015
217 posts
26 upvotes
Drumheller
This is directed at no one in particular, so don't y'all get yo knickers in a knot.

Electric vehicles will do about as much for the environment as computers did to eliminate the need for paper. Anyone remember how it was said that once all kinds of info and data could be stored on computers, we would become a paperless society? yeh well ....

Kindly take five minutes to watch this video.
I only have two problems with it:
1/ I know about hydro-carbons, but don't think there's such a thing as "fossil" fuel.
2/ I fail to see how CO2 emission is a bad thing.
But those are topics for discussion another time.

Newbie
Jun 28, 2017
53 posts
14 upvotes
IrwinW wrote:
Nov 19th, 2017 6:35 pm


2/ I fail to see how CO2 emission is a bad thing.
Go take a beach holiday on Venus, you might change your mind.

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