The World's Oil Giants Got Crushed (stocks)

Business Insider ^ | 11-28-14 | MYLES UDLAND

[dynachrome]

On Thursday, oil prices crashed.

And on Friday, shares of oil companies around the world followed suit.

Here were some of the biggest losers on Friday:

BP (BP), down 5% Royal Dutch Shell (RDS.A), down 6% Total (TOT), down 5% Statoil (STO), down 14% Exxon Mobil (XOM), down 5% ConocoPhillips (COP), down 9% Marathon Oil (MRO), down 13% Occidental Petroleum (OXY), down 7%

[Vince Ferrer]

To be more precise OPEC is trying to shut down our fracking.They can't be allowed to succeed.

They can only succeed by lowering their prices, which helps every other industry in America. If they succeed in shutting down our oil industry, and we are very close to producing as much as they do now, they will bankrupt individual companies, but the oil will stay in the ground, waiting for the price to go back up. The oil in the ground will act as a ceiling for their prices.

Meanwhile, the price they have to sell their oil at to shut us down is low enough that it will hurt many countries that aren't friendly to us anyway, including sponsors of terrorism. We still end up mostly winners.

[JRandomFreeper]

Some small companies may fail, but that oil ain't going anywhere. It will always be there to screw OPEC.

/johnny

[johniegrad]

Your post is the only one that makes sense given the current scenario.

[johniegrad]

I take that back. You have seconded Vince.

[Vince Ferrer]

In the grand scheme of things, it isn't just the price of drilling and extracting the oil. Most of these countries have nationalized oil companies, who use the money to fund various corruption and social spending. The chart above is what the countries have to sell oil at in order to keep their other budgets in check, which is a lot more important than just the price of extraction. Almost all of these countries will have to cut spending elsewhere in order to be able to sell oil at $65. Fine, let them. We'll just sit on ours as an expanded Strategic Petroleum Reserve, and watch the revolutions in their streets.

[RedElement]

Who do you think is going to stop them? BHO is kicking Bo the dog, thinking, “Why didn’t I think of this?” At least in the short term, our buddies the Saudis are going to hurt our domestic energy companies harder and faster than BHO ever dreamed.

It is going to hurt the Ruskies, Venezuela and Iran more than us.

As someone posted the other day, our oil is in our ground, and ain’t going anywhere.

[Chgogal]

Hope you all had a wonderful Thanksgiving.

Lookie here! We have an OPEC sell off and an OPEC Tax Cut. ; ) Ain't that grand!
This is the best thing for the working poor and middle class folks. Yippee!

[dynachrome]

“use the money to fund various corruption and social spending”

Yup, and the saudis prepared for this.

[kvanbrunt2]

The price of a company’s stock has little impact on the bottom line of said company. If they need to raise money in the capital market, which they probably don’t need to do, it would impact a secondary issue of stock. the price of the underlying commodity will impact the company depending on how they are positioned. Oil companies are refineries. They process the oil for other uses. i’m not an economist but if it were my company and the commodity price crashed i would consider that a good thing.

[1010RD]

Rockefeller gave us cheap oil. His innovations lead the industry. It’s the progressives who’ve made a mess of it and branded him a “Robber Baron”. It’s not true.

[HiTech RedNeck]

The GOP surge has given people some hope of an easier road to sanity.

[Captain Peter Blood]

They can only go down so much at the pump when you figure in the Federal, State and Local taxes on a gallon of gas.
Chances are they can’t go too much lower there.

[1010RD]

Unless I was in dire straits, this is a buying opportunity for the executive suite.

[ROCKLOBSTER]

What are those funny looking things on top of it? One has a bunch of weird looking wires coming out of it.

[nascarnation]

LOL and how ‘bout that carburetor thingy on top too...

[Rodamala]

Why would the price of oil going down be a bad thing?

The domestic energy boom is the ONLY thing that has kept the bottom from completely falling out of the employment market... unless you count government drones... or medical-industrial complex employment (also government drones).

[CincyRichieRich]

I bought a bunch of FRG the nat gas ETF...it is at 52wk low today, down like 10%

[AZLiberty]

Last May, AAA said the price of gasoline would never go below $3 again.

[tcrlaf]

“To be more precise OPEC is trying to shut down our fracking.”

Although Use market share (and hence, influence) is important to the Saudi’s it has NOTHING to do with the Saudi’s chopping prices, and opening the taps.

Nor does it have anything to do with Russia, though some would like to believe that.

For the Saudi’s, THIS IS ALL ABOUT ISIS.

ISIS is a dagger pointed straight at Mecca, and the Saudi Royal Family. ISIS gets its money from the sale of oil, and the sale of oil by it’s supporters.

What happened in the OPEC meetings this week was over-shadowed by all of the Ferguson coverage, but tells us everything we need to know.

[Jack Hydrazine]

I read somewhere yesterday it had gotten down to $69/barrel.