$40 Oil soon-Sell My House?

Where we go from here? Who knows, it could be up or down, I don't think that forecast can be accurately written at this point.

What will the producers do? The ones I know will either do nothing or only engage in projects that make sense at $40. The shale boys will go bankrupt or sell to all the PE money sitting on the sidelines right now.

When will we see the next boom? Sooner than you may think, but further away than those of us in the business would like...

 

The only reason we have not seen panic in the oil industry in the US, is because the banks/investors/creditors have doubled down (some cases triple down) and backed the industry. My theory; because of all the leverage in the business, the price can not sit this low for very long and sustain the industry, somethings got to give.

 

So long as you can hold your own and keep your expenses down (keeping a Fcar does not help) LOL, I think we can ride it out without any issues.

Just my opinion.

 

exactly one year since that fateful OPEC meeting and we're sitting here at $42 WTI after dipping into the $30s just last week. thoughts on how much longer this will last or where we go from here?

 

With the strong dollar (and getting stronger), OPEC, supplies still high, and the likely hood of a FED hike in December I think we may see high $30s again before the year is over. Good news is oil stocks are very cheap to get into.

 

Thanks! I must respectfully disagree on the stocks though...while they are "cheap" in the context of an $85+/bbl world, they are still quite expensive in the current commodity price environment. IMHO, stocks are discounting something in the mid- to upper-$60's...not even close to where the commodity is today or where the strip is indicating (not that I believe the strip is a good predictor of future prices).

I do find it interesting that not one person came back on here and said oil was going back to $100 in short order. When prices first took a hit last year at this time, more people on here were of the mindset that this would be a very brief correction...good to see more realistic expectations have set in.

 

Ok, its been a couple of years so I wanted to pull this up and check everyone's temp on this subject. How is everyone who is in the oil business feeling now?

 

continued over supply. price will be stagnant for foreseeable future.

 

Not to mention, demand is on a long-term downward glide path.

 

In developed nations demand growth is unlikely. But in developing nations long term - i see increasing demand for distillate

 

I dunno about the short term. Long term, however, from what I can tell, demand is skiing on a downhill slope.

 

Real estate is doing great in houston. I have a home in west u and they're selling for more than ever now. My neighbor just sold a teardown on a 5,000 sq ft lot for $680,000. New construction 3500-4000 sq ft homes on standard 5k sq ft West U lots are getting $1.5-1.7M. Id say the market is booming almost. Houston is still very undervalued relative to other major metros and has a long way to go to catch up. Everyone seems to be moving into the city and the suburbs seem to be lagging. I dont know but Im thrilled with my double lot in West U, I think Im up almost 100% since 2010.

 

I have a pool and a Labrador, they do not allow him in the pool!! LOL!

I would like to know where all those "$140K homes" are, in that chart.

Where I live in twenty years they have gone (the SAME house) from 120 - 140K up to $300 - $400K, then they tore that house down, and the empty LOT sold for $300K, and there is a speculative build going on now that will retail for over $500K!

The only thing in rental market now is it is almost 100% occupancy, from temporary flood relocations.

My leasing quit accepting packages....why?
Because they can!!

^&%^*&%&^!!!

 

The dog adds $500 to the unit deposit, and also $10 a month on the rent.

Not sure what that $10 covers, as I police behind him, although most tenants do not.