T. BOONE PICKENS- THE UNITED STATES SHOULD STOP PURCHASING MID EAST OIL!!!!!

T. Boone Pickens build a case for the United States to stop purchasing oil from our enemys in the mid-east.

https://www.facebook.com/Pickensplan/?fref=nf

It is hard to understand why the political climate does not understand the power of the United States

that now has the ability to produce our own energy needs.  Stopping fracking when our national debt is about to bury this country is tanamount to political suicide and cutting our own national throat.  

Something is so wrong with this picture that the only conclusion I can come to is that someone is being paid lots of money to make sure that this country does not understand the power of our own resource.

This is so amazing that it defies belief - this country is going broke- we pay huge amounts of money to purchase energy from our own enemies that we do not need to purchase.....!!!  We could change the whole balance of power and the administration and political hacks want to ban fracking?????

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Permalink Reply by george m vietze on April 11, 2016 at 12:21pm

Since mid eastern oil is in a decline curve and United States oil has longer term potential, mid eastern companies are investing in the United States.  The potential for a huge industrial revolution the likes of which have not be seen in decades could be in the future if the politics get onboard.  Mid eastern money may be playing both sides of that bet and fund the lobby that support a "frackless" economy.

American interest are getting "lean and mean" as a result of this downturn in prices, technology is improving and the cost of production is increasinly lower - the prices will rise - that is a given- the big question-  Which way will the politics go????

Permalink Reply by Thomas Malcolm Pendergast on April 11, 2016 at 4:09pm

Hi George!

I have a little information that might surprise you.  The biggest oilfield in the world, the Ghwar in Eastern Province Saudi Arabia, is now in about its 70th year of production.  That's really old but if it keeps producing at its current rate, its actually good for another 80 years.  The story in Kuwait is similar.  I'm not so familiar with production in Iraq, and Iran but the problems there are not geological (actually very good but complex geology in Kurdish Iraq) but political and economic.  A real mess.

Industrial revolution?  You bet!  It's not just the potential; it's here now.  It all boils down to natural gas liquids, specifically ethane and propane.  Those are the feedstocks for producing polyethylene and polypropylene, the building blocks for most plastics.

I have lost track of the number of ethane and propane crackers coming on line on the Gulf coast.  But we are now shipping ethane every day from Ohio to Sarnia's two crackers and Ineos' two crackers in Europe.  The same scenario will also play out once crackers are built in the Ohio River valley by Shell Chemical and PTT Global Chemistry (and maybe even by Odbrecht/Braskem if they ever emerge from their massive corruption scandal).

I seriously doubt that mideastern money is supporting fracktivists.  Saudi Arabia particularly is far more interested in developing a stable society and economy than engaging in behavior that disrupts stability.  They like to invest in the U.S. because it's stable.  They also like to invest in their own country for the same reason and because it's so rewarding.  Their life is so much better now.  In 1930 Saudi Arabia was one of the poorest countries in the world.  Three million nomads, no electricity or running water, dried camel and goat dung for fuel, living in camel-hair tents.  That's the kind of background Ali Al Naimi came from when he joined the Saudi-American Oil Company as an illiterate 12-year old boy.  He is now chairman of Aramco, the most respected national oil company in the world, bar none.  He went to Lehigh University and Stanford and has a doctorate in hydrology and may even have oil in his blood.

But one thing for sure, he and many others like him place a much higher value on the quality of life Saudis have today than on engaging in activities that threaten that way of life.  There was a time when the country was poorer that there was some xenophobia and looking to Wahabism for support.  But today, most Saudis see themselves as Saudis first, not religious extremists or even particularly fond of the royals.  They welcome new foreign direct investments (now wholesellers and retailers can be 100% foreign owned and foreign banks can open many more branches in about 25 major cities (70 years ago there were 6 major towns).  They don't want to jeopardize that as Iraq and Iran, Syria, Lebanon and the Palestinians have done.

For a little more perspective, it's worth noting that in the early days of the Saudi-American Oil Company, no more than 10% of the employees were Saudis.  Today, 89% are Saudis.  Saudis make up an even higher percentage of employees in Saudi Arabia at SABIC (Saudi Arabial Basic Industries Corp.), the second largest petrochemical company in the world.  SABIC  has 57 operations in the US and many others around the world.  No other mideastern country even comes close to matching that.  They want to preserve and enhance that.

I know it's hard to accept what I say when what you typically hear about the country is so negative.  But I think if you make an effort to really get to know the country and the people, you'd come to see them more like I do.  That has certainly been the case with ExxonMobil.  Even though no foreign company is permitted to own, drill, explore or process crude oil in the kingdom, ExxonMobil's largest joint venture anywhere in the world is with the Saudi petrochemical giant SABIC.

Permalink Reply by Paul Butler on April 11, 2016 at 1:04pm

I doubt that there is much of an appetite in the US for welfare for oil companies.

The oil companies need to come up with a development plan that isn't idiotic. 

The bone heads running the oil companies, that created this mess, need to leave the oil business and never return.

Boone holds himself out as a free market, invisible hand, republican. What a hypocrite, what a fraud.

Permalink Reply by Thomas Malcolm Pendergast on April 11, 2016 at 1:32pm

Last year, Marathon was the most profitable company in Ohio.  (The second most profitable was Cardinal Healthcare.)  In Findley Ohio, the boneheads at Marathon created tremendous value by the spinoff of Marathon Pipeline Partners and Marathon marketing and refining.  Then, Pipeline acquired MarkWest, a perfect match for growth especially when the Cornerstone pipeline comes on line next year.  Just look at the upgrades they've made to Detroit, Canton and Catlettsburg refineries.  And they own the newest and most advanced (not the biggest) refinery in the U.S. at Garysville, LA.

Marathon exploration's most brilliant move was in Oklahoma where they operate the most efficient wells in the SCOOP, STACK and Merimac plays - - - every bit as good as plays in the Permian Basin.  I don't think that Marathon has ever, in its long history, either looked for, wanted or needed welfare from the government or any other source.

Permalink Reply by Paul Butler on April 11, 2016 at 2:16pm

How much money did they make developing shales, netting out hedges?

Have they taken impairments?  If so, how much?

There are plenty of competent people in the business.

Plenty of incompetent people too.

Permalink Reply by Paul Butler on April 13, 2016 at 3:08am

You are a really creepy fraud.

I asked you 5 times yesterday, how much did they make?  No answer.

Most profitable company in Ohio?  So there are no companies that didn't lose at least a billion dollars?

The Financials are attached hereto.

The introductory paragraph is as follows:

February 17, 2016
Marathon Oil Reports Fourth Quarter and Full-Year 2015 Results
2015 Capital Program $500 Million Below Original Budget
HOUSTON, Feb. 17, 2016 (GLOBE NEWSWIRE) -- 
Marathon Oil Corporation (NYSE:MRO) today reported a full-year 2015 adjusted net loss of $869 million, or $1.28 per diluted share, excluding the impact of certain items not typically represented in analysts' earnings estimates and that would otherwise affect comparability of results. The reported net loss was $2,204 million, or $3.26 per diluted share.

Attachments:
Permalink Reply by Thomas Malcolm Pendergast on April 13, 2016 at 5:57am

If you doubt the validity of any claims I make, especially regarding the performance of a listed company, I'm glad to see that you know how to verify, or better yet prove the claim false, and then rub the claimant's face in it in a public forum, that's great.  I'm glad it makes you feel better, maybe even superior!

Best regards,

Tom the worldly creepy fraud

Permalink Reply by Paul Butler on April 13, 2016 at 6:34am

The truth will set you free.

Permalink Reply by Joseph-Ohio on April 11, 2016 at 2:06pm

Paul B.,

Based on what I've read of his 'Pickin's Plan' and other publications of his organization promoting conversion to Natural Gas (for freight and transportation) I find him an excellent leader.

One of the few making domestic sense to me.

JMHOs

Permalink Reply by Thomas Malcolm Pendergast on April 11, 2016 at 4:34pm

Hi Paul and Joseph!

Not sure I can say how much Marathon or anyone else makes off shale.  That's where virtually all of the action is in the States.  All I know is that Marathon is one of the best and they're focusing now on Oklahoma and Ohio.  EOG and Whiting also excellent but they don't operate in the Marcellus/Utica.  Great one that do are Antero, Rice, Gulfport, EQT.

Aubrey McClendon and Pickens were great at promoting nat gas as a transportation fuel.  Momentom is building and it won't stop.  It's even expanding to marine bunkering on the Lakes.  Interlake Steamships, a century-old firm is converting its lakers to run on nat gas.  Shell has the exclusive bunkering contract, probably from Sarnia.

Permalink Reply by Paul Butler on April 11, 2016 at 11:57pm

"Not sure I can say how much Marathon or anyone else makes off shale."

Well, isn't that convenient.

Let me help you out---the self styled, industry leader, CHK, lost 40 million a day in 2015 and more of the same is predicted for 2016 by people who do understand business.

You need to actually do some research and spare us the sappy, hokum.

You come across as a con and a shill to me.

Do you understand the losses people like you have cost the American investment community in the last 5 years?

It's been little more than theft. 

The companies you named are some of the biggest dogs.  Get a clue.  Everyone of them has done nothing but lose money hand over fist.

Permalink Reply by Thomas Malcolm Pendergast on April 12, 2016 at 2:23am

"You need to actually do some research and spare us the sappy, hokum. . . .The companies you named are some of the biggest dogs.  Get a clue.  Everyone of them has done nothing but lose money hand over fist"

EOG, Whiting Petroleum, Antero Resources, Rice Energy, Gulfport and EQT are dogs???

The performance of their wells is proof of their technical competence.  These are the upstream producers, the ones most under pressure due to prolonged low prices.  That they have survived this long, even after all hedging opportunities have been exhausted (that is no longer an option), testifies to their ability to minimize losses (selling off non-core assets, setting up MLPs for gathering and water pipeline systems, dropping more assets into their tax-advantaged MLPs, doing longer laterals with tighter spacing of stages with a lot more proppant, etc.).

All of the companies mentioned above have just gone through semi-annual redeterminations of their lines of credit with their banks.  While many in the upstream sector have seen their lines of credit reduced, these companies' bank syndicates have maintained (and in two cases increased) their lines of credit.  Chesapeake, for example, has maintained a $4 billion line of credit for the past five years and never drawn on it.  In their redetermination last week, they did need to pledge more collateral but retained their $4 billion line of credit (for comparison, Marathon's credit line is just $3.5 billion and their capitalization is much higher than Chesapeake's).  If they were in bad shape, the bank syndicate would have reduced the line of credit or even eliminated it.  Undoubtedly, Chesapeake's bank syndicate also appreciated the fact that it paid its bond that matured in March on time and in full without encumbering their free cash flow.

In the current environment, if an investor has a high risk tolerance, the investments will go into the upstream sector where the payoff can be expected to be large if commodity prices recover; and losses can be large if prices don't recover.  By the same token, if the tolerance for risk is low, investments will be made in the midstream or downstream sectors and the price for doing so will be higher and the returns will be safer but not dramatically more profitable.  Or, the risk-averse investor, who doesn't want to do due diligence in the oil and gas / energy sector, will invest in a completely different sector:  robotics, for example.

Ekso Bionics would be an excellent choice for such an investor.  Although I think highly of the company and work a lot with the local high school robotics club, I like to remain focused on the energy sector.

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