Minneapolis StarTribune Daily Business section today ran a story saying North Dakota oil is now being sold at $ 27 bbl. Nobody is making a profit. SA and OPEC run just about anyone out of business and destroy jobs, investments and families. Why do we still buy oil from those folks?
SA and OPEC may take oil to the $ 20 bbl level.
The Saudi's may have taken their position one step too far. It may have caused commodity disinflation world wide.
Some offshore oil drillers will file for protection and some will come back leaner and be able to survive at a much lower cost. On shore drillers will learn to operate at a much lower cost through much improved technology, drastically lower costs and improved efficiency.
As other energy sources grow Brent crude may never go north of $ 50 bbl again. Even if the Saudi's and OPEC cut 5 million bbl per day other producers could make up the difference as prices move up. US, Russia, & Canada. The Saudi, OPEC and Russian mentality to protect so called market share is wide spread and probably can not be stopped. Oil could be below $ 30 bbl in 6 months with gas below$ 1.50 gal.
North America probably should create their own pricing sphere to insure a constant supply at a reasonable price.
Hope I'm wrong on this.
Sold at a big loss to avoid more.
There should be a disclosure below that states one is on the side.
No contracts for next nine months but minor extensions. Stock floats between $ .60 and $1.00. Speculation continues about merger back with SeaDrill parent. Third quarter 2016 - potential for 1-3 new contracts in North Sea area - possibly from Statoil.
Sanctions off July 2016. New talks with Russia. Contracts uncertain.
Agree. When it does the Saudi and Iran Oil people will be patting themselves on the back saying,
"We won! We protected our market share" Iran will wonder how are we going to pay for the spare parts we need to keep our military equipment running? SA will be okay for a year or two and then possibly have to take a living standard cut. Hopefully The 500 people running this country from Washington will wake up, allow US oil companies to sell excess productions and establish their own market share. Hopefully those same folks will realize we are not driving 1950, 1960, 1970, 1980 cars and allow refineries built back then to be replaced so they don't have to shut down for maintenance and seasonal changeovers.