The B/E for most ME countries is 80+. Russia it's 130....These countries cannot continue at this current price, not even 50/60. The Saudi's are p-o'd the shale and fracking business is a success which is why they raised production - to stick it to America. But they can't sustain all the free services they provide its citizen's and they are getting p'o'd about it as there is talk about having the citizens start to ante up for services that were free. There has been talk of these countries opening up the market more freely but that means opening the books of the gov controlling oil -not gonna happen - hence this week to cut prod and they really gotta cut it to keep the peace or....well that's a real disaster....They are in a no-win situation IMO
This company cannot sustain business at this pace. Could barely service it's debt, and clearly even when the ME announces cuts in production CRC drops while everyone else goes up. Wall Street is not happy with CRC at all, it's direction or mgt, nor it's environment.
maybe Chev makes a play for LB and Elk Hills for $3 - if not BK looms
Not just the Middle East. But Russia, China and South America can't go much longer at these prices for their economies to keep moving along. Personally I see a turnaround in early '16 once OPEC slashes production (remember they were bent on USA fracking making headway), and have backed up their trucks with cash to capitalize on the 25-50% increase in oil prices
Chazen has always had his eyes on some divestures in the ME, not all but some. Not sure why Iraq was even in play to begin with. Permian is a mint and it's heavily focused on....