seadrill was over 45 between august 2013 and nov. 2013 on numerous occasions. it was over 40 between may 2014 it was over 40 several times in june and july of this year. if the frackers get knocked out of the game then ivo might be right....but i think they will always be around to some degree ...though not playing at the same level they are now.
its not a ridiculous prediction in my mind. the stock was selling at that price with oil at 70-80/barrel which i think will happen before years end. he is also right about rig counts dropping sharply if he is referring to fracking rigs.
america uses 1/4th of the world oil supply of 94 billion barrels/ year which means it uses about 23.5 billion. US oil output has increased with fracking from 7 billion/year to about 10 billion. if you claimed US oil production would be enough to account for domestic demand here you were WAYYYY off.
cost of pumping shale is 60-65 bucks a barrel. ultra deepwater drilling has about the same cost. shale wells only last a couple years and must be redrilled. right now the shale producers are losing about 10-15 bucks a barrel. my guess and the saudis hope is that they wont try it...at least not for awhile or in greater moderation.
its a gunfight between these two antagonists with 50 dollar a gallon oil being used as bullets to destroy each other. the offshore drillers? they are the innocent bystanders who just happened to walk out into the middle of the street when the shieks and the cowboys started blasting away at each other. if the offshore drillers can crawl back into the saloon before the gunfighters shoot off too many of those 50 dollar a barrel rounds then the offshore drillers will survive. if too many rounds go off then the offshore boys will be dead, the frackers will be dead and the shieks will be back to riding camels instead of cadillacs.
again..he shorted SDRL under $10 and for the last 15 days the RAT beavercleaver was hiding --now he came out of the rat whole and start showing his teeth again ..ydiota
It will take a long time to get back up to 45 even if oil returned to 100 because there has been a lot of technical damage in the stock with the way it dropped so fast...those still holding at much higher prices will be selling the stock down even if oil goes back to 100
I am in SDRL at a 13.80 cost but I won't follow what hedge funds or analysts have to say. Hedge funds were entreily wrong last year making huge bullish bets on oil while analysts all had oil at 150 - 200, including GS. After the November OPEC decision they said oil was going to hold 70. They just do not know. No one knows.
Make your bet on your own conclusions for oil.
Tom....your mother is calling me ?? is she good looking ? listen..if she is up to 55-55 years old and has nice body i would do her but if she is older than that i am out !!!!
Their oil industry can, but their people can't. They get free everything when oil is high. What will they do without the support of the regime? Get jobs? There are none.
Read this, "Saudi King Unleashes a Torrent of Money as Bonuses Flow to the Masses". It shows that the Saudis can do this for a while, but they will eventually need to get oil back up. Their welfare state depends on it and their people would not sit still if their checks, cheap gas and gifts from their government ceased.
Ivo I don't think the word behave is in your vocabulary:)...nor is truthfulness and honesty:)
do you ''think'' i care what you'' think ''. I said many time I AM A TRADER ..i am not babysitter