Chevron's cashflow problems are huge. And I don't think oil is done going down.
5 replies (most recent on top)
Personally, I think you guys are full of shit. LNG plays were based on high growth in the Asian markets, and although they have taken a hit, of late, those markets still offer the best chance of high economic growth, in the world,... the basics don't just change, overnight. You can bitch and moan all you want, make all the doomsday predictions it might take to make yourselves feel relevant, but Chevron will remain a wealth engine long after YOU bozos have drowned in your own drool.
Yes the real pain is coming was 38. I am retired but still have friends there.....you are in for some brutal times. This is a structural problem based on both supply and demand. And you could not have made a worse bet than LNG over the next 5 years and CVX cashed all their chips on two boners. Chevron is worse off than any company in 86 or 98....here is a good chart to show oil price and inflation adjusted price from 1946-2014.http://inflationdata.com/inflation/inflation_rate/historical_oil_prices_table.asp
Everyone is celebrating a 10% gain to 42 bucks.......that alone tells you how bad it is.....put a fork in Chevron they are done. Make sure you bring a cooler for your lunch as they won't be able to pay the electric bill in a few months.
so.... if you wernt here in the oilfield in 1986, this is just a hickup the real pain is coming!
The main reason oil is up today is because short sellers are buying it at its low to cover their positions before the end of the month based on September crude shorts. There was also a reported decrease in US inventories.