SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Gold/Mining/Energy : Strictly: Drilling and oil-field services
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Crimson Ghost who wrote (37444)2/12/1999 12:11:00 PM
From: Mike from La.  Read Replies (3) of 95453
 
I hope you're right. The thing about instability due to low prices is that it is completely in the hands of those countries most negatively impacted to correct the situation. If they don't I don't see what anyone else can do. The fundamental differences between now and the 80's, besides what you pointed out, is that we are not sitting on the results of oil boom and 4700 rigs working. The real price of oil is lower, but the source of the over production is much less broad based, almost completely due to OPEC raising their quotas, and cheating beyond that. There is some excess caused by drilling and production based on $21 oil, the marginal wells, but not the huge flood that was there in the 80's. So I think the correction will come much sooner, just don't know when. Plus, we have demand for natural gas giving some support. The biggest unknown is just what is the viable price for the lower price producers? Can they make it at $12, $14. or do they need over $17? No one really knows. There seems to be plenty of production that is less than $5. But, I'd be happy for any relief, from any where. Maybe we can do what J. R. Ewing tried to do in the old Dallas series. He wanted to hire some people to plant a nuclear bomb in Saudi Arabia.

Mike from La.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News