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Non-Tech : Kirk's Market Thoughts
COHR 190.88+2.8%Dec 22 3:59 PM EST
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To: Fiscally Conservative who wrote (13776)5/20/2022 9:31:41 AM
From: Kirk ©1 Recommendation

Recommended By
berniel

   of 26822
 
Not always. A well may contain a fixed amount of oil to pump. If you can get it out for $50/bbl and sell it for $100... why would you drill another well to get oil out at $80/bbl when it lowers the return on your other, more profitable wells?

Why "work" when you can sit around counting dividends and profits while prices remain high because you are sitting around rather than drilling new wells?

The Saudi's have it down to a science so they lounge about or divest their profits when prices are up and as soon as others drill more wells, they increase their production to lower the prices and make further drilling unprofitable and give the new drillers a real spanking.
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