Oklahoma business energy news

[bchris02]

Not sure what to make of this....

Chesapeake Energy selling Oklahoma assets to Denver's FourPoint Energy for $840 million - Denver Business Journal

This is kind of concerning.

Also, has SD been downgraded to "junk" stock yet? Has their risk of bankruptcy increased or decreased in recent months?

[zookeeper]

It's a worldwide reality.

So are a lot of things that are also shameful. Maybe some that we might agree on, but it being a reality doesn't stop it from being shameful.

[zookeeper]

Of course, this isn't about money. What he is defending is his reputation. Going down this path is risky on his part and he must feel confident he can prove his case. Otherwise, by suing he is opening up a big can of worms that if they show the author is correct will damage him much deeper. But, HH has always been a gamble.

He knows he can wear this guy down with whatever legal team his billions can buy. The truth doesn't matter when you have access to those kinds of resources. Entitled thinking by those who own and run our country. Example - the very letter and emails and calls from Hamm. Don't they know who he is? How dare them! Wave that wallet or tell them to wave it goodbye and you can control and manipulate our republic. Just to think this city gave him money to move Continental here (used to be called bribery) should disgust everyone. But, for some reason, to many here - it's just the American Way.

[OkiePoke]

This is kind of concerning.

Also, has SD been downgraded to "junk" stock yet? Has their risk of bankruptcy increased or decreased in recent months?

IMO, CHK was drilling wells and just capping them to retain the leases in this area around when Aubrey was exiting. I know they went CHEAP with these wells knowing they would likely sell them in the future. I saw was kind of products they were using on them. Now, this could be fewer than 5 wells, or closer to 50. I would guess it is closer to 5.

I'm guessing they were planning to sell those assets for a few years now.

[bchris02]

Does anybody think Sandridge is a good buy? At less than $1/share, a person could really make bank if they want to take a risk.

[okatty]

Does anybody think Sandridge is a good buy? At less than $1/share, a person could really make bank if they want to take a risk.

Personally watching CHK more than SD. Down another 5.5% today (10.55). I'd love to see a huge trading volume day and another drop. Who'd have thought SD under a $1 and CHK flirting with $10.

[OkiePoke]

I have a few alerts on for CHK. Next week might be a good time to buy.

SD on the other hand... High Risk, High Reward... right?

[mimino]

Check some of the articles on SD here: SD Stock News - SandRidge Energy, Inc. Stock | Seeking Alpha (mostly read the comments section). Seems like majority of people there wouldn't touch this stock. CHK, on the other hand, might be a good play, but the bottom is nowhere in sight yet.

[Just the facts]

LOL - I read that first article on the link and they actually used the logic that if SD was going out business banks wouldn't have been loaning them money. My guess is that whomever wrote that graduated college after 2007.

[okatty]

Oil prices off 6% today - most in 3 months.

[gopokes88]

Oil prices off 6% today - most in 3 months.

A few weeks ago i posted in the oil prices thread that we were going back down and the only thing propping us up is the seasonal demand. I thought it would start to turn in the fall, but greece, china, and opec going on all in on their oversupply is a perfect sh*t storm to pummel prices.

[ctchandler]

I read in the DOK last week that Argentina and Iran were going to increase production, that could be having some impact on the price.
C. T.

[Jersey Boss]

Problems in Greece, potential for increased supply from Iran when sanctions lifted, slower growth in China, and a report last week that supplies in the USA have increased for the first time since April are all contributors.

[Stickman]

Is Sand Ridge really selling at 70 cents?

[king183]

It's going to get a lot worse here, soon. With China's slowdown (they're starting to enact additional capital controls, which is a very bad sign), the increasing strength of the dollar, and more exports flooding the global market, oil is probably going to trade in the $45-50 range for a long period, killing several Oklahoma energy jobs, slowing tax revenues, and requiring further cuts to gov't services, including education and health.

This will affect the MAPs implementation by slowing sales tax revenue, which will probably require us to pass an extender like we did with the arena. It's also going to slow or stop new developments downtown.

I wish we would take more steps to strengthen our burgeoning and successful biotech sector, which is helping stabilize the economy as the energy sector is hurting.

[gopokes88]

It's going to get a lot worse here, soon. With China's slowdown (they're starting to enact additional capital controls, which is a very bad sign), the increasing strength of the dollar, and more exports flooding the global market, oil is probably going to trade in the $45-50 range for a long period, killing several Oklahoma energy jobs, slowing tax revenues, and requiring further cuts to gov't services, including education and health.

This will affect the MAPs implementation by slowing sales tax revenue, which will probably require us to pass an extender like we did with the arena. It's also going to slow or stop new developments downtown.

I wish we would take more steps to strengthening our burgeoning and successful biotech sector, which is helping stabilize the economy as the energy sector is hurting.

Oklahoma's economy is actually more diverse then people here give it credit for. They mistake diversity for growth. The Oklahoma economy is fairly diverse. However, the economy only grows when oil is high. The rest of the economic sectors just provide a nice baseline but they aren't the engine of growth that oil is.

Oh and $45-50 is optimistic. We'll be below $40 by August.

[bchris02]

One thing with oil is momentum can change in one direction or the other very suddenly. Some experts are still forecasting a return to $70 oil by year end.

Hopefully the worst-case scenario that king183 describes doesn't play out.

[king183]

One thing with oil is momentum can change in one direction or the other very suddenly. Some experts are still forecasting a return to $70 oil by year end.

Hopefully the worst-case scenario that king183 describes doesn't play out.

I hope they're right that it gets back to $70, but I'm doubtful of this given all the domestic and global factors working against it. The nation's economy is weaker than a lot of people believe, due partly to slow wage growth, depressed prices, and the worst participation in the labor force since the 1960s. Global economic growth is, at best, tenuous as debt issues become increasingly prominent and governments struggle to respond with the correct measures.

Add to this the rapidly dropping price of alternative energy like solar, development of newer storage systems like the Tesla battery system, and the future does not look good for the oil and gas industry.

[Jersey Boss]

It's going to get a lot worse here, soon. With China's slowdown (they're starting to enact additional capital controls, which is a very bad sign), the increasing strength of the dollar, and more exports flooding the global market, oil is probably going to trade in the $45-50 range for a long period, killing several Oklahoma energy jobs, slowing tax revenues, and requiring further cuts to gov't services, including education and health.

This will affect the MAPs implementation by slowing sales tax revenue, which will probably require us to pass an extender like we did with the arena. It's also going to slow or stop new developments downtown.

I wish we would take more steps to strengthen our burgeoning and successful biotech sector, which is helping stabilize the economy as the energy sector is hurting.

Instead of further cuts to gov't services a cut of tax credits would be more appropriate. The legislature however has shown they have the spine of a jellyfish.

[PhiAlpha]

It's going to get a lot worse here, soon. With China's slowdown (they're starting to enact additional capital controls, which is a very bad sign), the increasing strength of the dollar, and more exports flooding the global market, oil is probably going to trade in the $45-50 range for a long period, killing several Oklahoma energy jobs, slowing tax revenues, and requiring further cuts to gov't services, including education and health.

This will affect the MAPs implementation by slowing sales tax revenue, which will probably require us to pass an extender like we did with the arena. It's also going to slow or stop new developments downtown.

I wish we would take more steps to strengthen our burgeoning and successful biotech sector, which is helping stabilize the economy as the energy sector is hurting.

That is what everyone thought the last time oil dropped into the $40s but there was little, if any, real slow down in DT development, and I'm unaware of any project that was cancelled due to the price decline. Hopefully that holds if things drop down into the $40s again. General sentiment is that the price will not stay down that long even if it drops again and until that sentiment changes, I doubt we see any major impact on development.

[gopokes88]

I hope they're right that it gets back to $70, but I'm doubtful of this given all the domestic and global factors working against it. The nation's economy is weaker than a lot of people believe, due partly to slow wage growth, depressed prices, and the worst participation in the labor force since the 1960s. Global economic growth is, at best, tenuous as debt issues become increasingly prominent and governments struggle to respond with the correct measures.

Add to this the rapidly dropping price of alternative energy like solar, development of newer storage systems like the Tesla battery system, and the future does not look good for the oil and gas industry.

Tesla is like removing a drop of water from a 55 gallon drum. It's 40-50 years from making the impact the greenies wish it would. Oil demand's growth is fueled by developing nations and electric cars are still very expansive, and also require good infrastructure or they aren't feasible. Developing nations have neither, however relatively cheap crude ($40-$70) can kick their economies into over drive and they'll reach that point quicker. Cheap crude lowers input costs for manufacturers which boosts margins that boosts profit and puts upward pressure on wages and away we go. We don't feel those effects in the USA as much because our economy has advanced past being manufactured based.

[bchris02]

I definitely think we are decades away from electric vehicles making a dent in oil demand. Solar energy is so inefficient right now its not even a factor.

[zookeeper]

Tesla is like removing a drop of water from a 55 gallon drum. It's 40-50 years from making the impact the greenies wish it would. Oil demand's growth is fueled by developing nations and electric cars are still very expansive, and also require good infrastructure or they aren't feasible. Developing nations have neither, however relatively cheap crude ($40-$70) can kick their economies into over drive and they'll reach that point quicker. Cheap crude lowers input costs for manufacturers which boosts margins that boosts profit and puts upward pressure on wages and away we go. We don't feel those effects in the USA as much because our economy has advanced past being manufactured based.

"Greenies"? ? ? As opposed to the those who see the evidence right in front of them, deny it, and want to continue to make on earth a living HELL?

And, please...we have "advanced" past being manufacturing based? Yes, we "advanced" ourselves right into a nation of service jobs and wage deflation. (First time since the twenties and thirties.) Seriously, where did you study economics? It had to be one of several state universities in one of the southern conservative states. Your economic views are tired, worn out, disproven, embarrassing, and half the time - outright falsehoods.

[bchris02]

"Greenies"? ? ? As opposed to the those who see the evidence right in front of them, deny it, and want to continue to make on earth a living HELL?

He does have a valid point. Alternative energy and electric cars are currently a niche market. It's not enough to make a serious dent in fossil fuel demand.

[zookeeper]

He does have a valid point. Alternative energy and electric cars are currently a niche market. It's not enough to make a serious dent in fossil fuel demand.

bcrhris, I wasn't even referencing the demand part of his/her sentence. The "greenie" term is considered a pejorative when used in this fashion. GoPokes is all-in on continuing the the fossil fuels train that is soon to derail the entire planet.

Also, change of huge magnitudes can happen in an instant. People in 1990 would never dream of what we do on the internet now. It changed everything in just 20 years or so. To think we'll have to wait 40-50 years for something to replace fossil fuels is a dire prediction. It will be something that comes from nowhere and changes the game very quickly. Technology leaps are happening exponentially now. What used to take ten years can now be accomplished in one year. Research is being democratized with startup foundries in all the cutting edge industries.. You can't put a price on the fact that intelligent people with great ideas can today find funding to begin research. Or, the bolt from the blue could come from a Google or Apple that could put fossil fuels in the dust bin in the blink of an eye. Some may laugh, but it will happen as history has shown us time and time again that these huge changes can take place very quickly.