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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: elmatador who wrote (108317)	11/7/2014 12:20:23 AM
From: clochard	Read Replies (1) \| Respond to of 219591

The car industry will get slammed by all the folks on minimum wage who switch to public transportation in many parts of europe. Imho QE was the one thing that kept car prices from imploding after the last crash.

To: elmatador who wrote (108317)	11/7/2014 1:52:11 PM
From: Elroy Jetson	Respond to of 219591

Big fluctuations in oils prices are the reason oil companies typically have very little debt. But one company is talking about adding a lot of new debt as oil prices fall - Los Angeles based Occidental Petroleum. Why? Because they've put themselves in a bad situation again. Unfortunately Occidental, knowing prices were headed only up, made such a huge investment in finding new oil that their production cost is now around $97 per barrel, well above market price. By comparison, it costs Chevron or Exxon only around $10 per barrel to produce oil, and they are replacing each barrel of oil they sell with new 1.2 barrels of new discoveries. So what is Occidental's answer to this horrifying problem? They want to borrow quite a lot of money, as oil prices slide, so they can buy a lot of oil production which is produced less expensively from others. This will save them if the slide in oil prices is temporary, as their average cost of production will be lowered somewhat and they hope oil prices will rise above this reduced number. But what will happen if oil prices remain depressed? Clearly Occidental Petroleum will be eaten alive by the repayment demands of their new debt. This would not be the first or even the third time Occidental Petroleum has faced bankruptcy. It's late founder Armand Hammer routinely drove Occidental Petroleum into near bankruptcy with great flourish. But one day their luck will run out.