You are right. Putin could take out the majority of Saudi Arabia's production with a few of their new supersonic cruise missiles and I doubt anyone would do anything about it.
So illegal trading activities by the Saudi's? Along with their blatant violations of antitrust laws, antidumping provisions, why would we even consider reversing our course toward energy independence when we are so close? Has it just been too long since we've had an economic asswhoop and have forgot what it feels like?
Dean. Please tell us how much CLR spent to fund its "reckless expansion" in the first 9 months of the year.
dean, you literally have no idea what you are talking about. And why on earth should he be concerned about the opinion of a banker?
Dean, whether the decision to monetize his hedges turns out to have been "the worst possible" or extraordinarily lucrative won't be known for many months. Also, it is nothing like dropping your health insurance.
Monetizing the hedges provides him with an advantage that is easy to overlook. By keeping the hedges on, he is forced to keep production up, contributing to the problem. Now he sits on a cash position that is large enough that he can afford to be choosier about price. He can slow production some if he feels that is to his advantage. And though his 200 Mbopd is not alot in the worldwide scheme of things, in his geographic area, it is quite significant.
It is his company, he is free to navigate this OPEC crisis in the way that he sees fit. He has been doing this with success for many years, I wouldn't be too quick to second guess him.
"Dropping the hedges so far hasn't stopped the decline"
I don't think anyone expected that it would.
"why did his creditors allow it??"
Why would you expect the owner to even seek the creditor's opinion on the matter?
I wouldn't try to trade this. I don't have a very good feel for what is moving the price. Previously, I was convinced the Scotland independence vote was the most important input to its price movement, I was dead wrong about that as it turned out, and likely to be wrong about guessing where it goes next.
Sounds encouraging, but to be honest, I don't think WilHunter or WilPheonix would be good candidates to send to the arctic.
You know, here is a man who has done more than anyone to put the US within spitting distance of "Energy Independence" It would be reassuring to know that someone, somewhere has "got his back" as our fearless leader always says. If the House of Saud is the winner in this war, we all know the endgame is higher prices, greater imports, and deteriorating balance of trade.