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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: isopatch who wrote (184110)	5/28/2014 8:09:59 PM
From: JimisJim	2 Recommendations Recommended By CommanderCricket kidl Read Replies (1) \| Respond to of 206176

Anyone with any sort of experience with oilpatch (investing, working, etc.) long term -- over decades -- knows, just plain knows that every boom leads to an inevitable bust. I know I'm not telling you anything you don't already know, iso... I've read both articles and see both valid pts and not so much, but still just KNOW that there will be a bust -- I don't know the exact thing that will be to blame, but I know it's going to happen -- and everyone here who's been watching, investing, discussing and/or working in oil knows it, too, deep in their gut. The trick is to be ready to take advantage of it, just as it will then be time to get ready to take advantage of the next boom. Everyone has their ways of doing these things, so I won't bother with that. Just wanted to remind everyone what we already know -- and, no, this time is not going to be different except for... maybe... maybe... how long the present boom lasts -- knowing that the longer it lasts, the harder the bust will be... think 1986 as an example.

To: isopatch who wrote (184110)	5/29/2014 2:01:28 AM
From: upanddown	Read Replies (2) \| Respond to of 206176

"The list of companies that are financially stressed is considerable," warns one analyst as shale debt has almost doubled over the last four years while revenue has gained just 5.6%" ISO, the number that really caught my eye was the 5.6% revenue increase in four years. That is mathematically impossible, at least in the Bakken. From state of ND..... Oil production 03/10 277610 BOPD Oil production 03/14 977061 BOPD An increase of approx 250% dmr.nd.gov Oil prices 05/10 approx $77.00 Oil prices today approx $103.00 An increase of approx 33% nasdaq.com How could those numbers possibly add up to a 5.6% revenue increase? The major players in the Bakken have had vastly higher revenue increases over the last four years. This is not to say that everyone is a winner there. Lots of players with marginal land are not going to make it. It also appears that many companies are on a financial treadmill where their spending is always outstripping their cash flow but still, this stupid hit piece doesn't shed much light on anything.