Thread regarding Chevron Corp. layoffs

actually there was a large number of speculative bullish trades on oil futures when it was trading at +$100. u can argue a large part of the run-up was due to speculation. if u look at supply/demand curves it wasn't like demand for oil was going gangbusters to support such a run in futures. the financial crisis basically burst that bubble and all the trades collapsed.

LNG plants are very expressive to build. Chevron started the Gorgon and Wheatstone projects with a 5 year construction to startup timeline. Of course, the timeline was besieged by cost over runs and delays. During all that time, natural gas prices began declining, making the investment less lucrative or the ROCE payout further out in the future. Natural gas is abundant and fracking technologies has helped bring more of it to market. LNG still has a market. It can be shipped to countries, where pipelines are not the viable means of transportation. But LNG is no longer the golden goose we thought it would be when we gave the projects in Australia the green light.

I couldn't believe you replied either :) And its already happening in California.

http://www.utilitydive.com/news/shift-towards-renewables-behind-decline-in-california-gas-demand/449627/

"If China/India reach renewable energy targets for power generation"? Are you being serious? Those targets are not only superficial and meaningless but not even in the order of magnitude that fossil fuel energy sources provide and at much greater costs. I have a feeling that you are just a troll. I can't believe that I'm even responding to such a laughable troll comment.

Something I have been wondering (if anyone in layoff land knows better) is what could happen to the LNG markets. If China/India reach renewable energy targets for power generation, could it depress demand for LNG? If suppliers are already trying to renegotiate their long term contracts what could happen in the future.

Oil is coming back. The companies didn't see the downturn coming but the upturn is easier to recognize given that capital projects have ceased and all fields eventually go on decline.

Plenty of people saw this crash coming. The world was awash in oil, Libya was about to come online, people were still drilling like crazy and it is a cyclical industry. Only complete morons thought $100 oil was here to stay (not mentioning any names, but...)

What caused the slump is over-supply you idiot. Read the news.

If you have to ask here, then you don't watch any tv, listen to the radio or surf the net for current industry and company news.