what are the key risks in oil industry

[ssdnola]

or energy sector in general

 

[FlamesFan]

Not to sound overly sarcastic but you should have guessed the key risk being the underlying commodity.

 

[kcin]

Low commodity prices
Weakening consumer demand
Limited reinvestment bringing on additional major projects
Limited ability to secure cheap additional debt facilities to fund development projects

There are a lot of risks facing the industry...

 

[TheAliMan]

High SG&A and stupidly executed companies ---> See Nexen

 

[kcin]

Nexen has terrible execution.

 

[TheAliMan]

kcin, I'm glad you and I see eye to eye

 

[JoeyDVivre]

Don't you read the news? Somali pirates hijacking supertankers.

 

[NakedPuts]

If they fail to bring the funk, they could be in trouble.

 

[shakespeare]

Alberta oil costs more to get out of the ground and refine these days than they can sell it for at the current depressed prices...

 

[FINforLIL]

A new, inexpensive energy source would be problematic.

 

[Reggie]

Yeah I'm currently working for an oil well servicing company in Alberta, and no one is working right now (and winter is their 'go' time)... Going to start looking for another job real soon.