Baytex Energy Corp T.BTE

Oil Price

[oilfan]

As much as some on this post get excited wheh there is a surprise crude build, the crude price vector is destined to go up for the foreseable future. Two reasons:

1) Global demand is more or less steady but likely going up. All China talk is about slowing growth, not really consumption reduction. China's GDP growth was 6.3% in Q2...hardly a cause for panic.

2) The oil rig count in the US is only 525 now. Peak was over 1600 in 2014. You have to drill to pump. Curently the US oil industry is going through the DUCs but eventually the daily production will start to go down...and fairly fast.

Supply and demand laws will inevitably gain the upperhand.

[Kelvin]

Oilfan, crude vector?! You know something about linear algebra, no doubt. What other vectors are you mapping into your sp matrix? Forex, US dollar index, treasury yields.....?

[IainCaimbeul]

Oilfan, your comment brought a tiny tear to my eye. As an economics major I took a linear algebra course as an elective. For some reason I had a real affinity for orthogonality and matrix operations, guess it's the way my brain is wired, my highest mark at Queens. Cheers.

[Kelvin]

IainCaimbeul, Yeah dot product is zero if orthogonal if memory serves. Anyway quantifying causes and effects. I always have wondered how you economists decide how much weight to put on various input factors or vectors. This board puts a heavy weighting on oil price which makes sense. But if oil price is increasing because the US dollar is getting weaker and not because of tighter supply then how

[red2000]

Just in case for newby's here : Because I think, Ranger Oil has several uncompleted wells !!! More details coming about it ! Drilled but uncompleted wells   Drilled but uncompleted wells, also known as DUCs, are oil and natural gas wells that have been drilled but have not yet undergone well completion activities to start producing hydrocarbons.