Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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.

Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: John Pitera who wrote (17207)	8/27/2015 1:47:44 AM
From: The Ox	Respond to of 33421

I've been expecting to see WTI flatten out and find a base or possibly a new trading range. I don't think $30-$60 for the next few years is out of line for the industry, especially when looking at that chart from the 80s, 90s and early 00s. Those companies who's business model is depending on oil over $50/bbl may find it impossible to survive. A spike below $30 would likely be the death knell for a number of companies in the patch. We've seen quite a few coal companies wiped out by low pricing and it's not too far a reach for this to happen in the oil patch. The price has also fallen far enough that a "dead cat bounce" could be in play in the not too distant future. Eventually, and it's hard for me to see when this will occur, the cure for low prices will be those same low prices. As was the case that the cure for high prices was massive exploration and new extraction techniques and technologies.

To: John Pitera who wrote (17207)	8/27/2015 10:33:50 AM
From: Chip McVickar	1 Recommendation Recommended By Blasher Read Replies (1) \| Respond to of 33421

Hi John - Nice to see a post from you... Low oil prices are definitely a boast for the consumer... and the economy Consolidation of the industry, bankruptcies and general lack of removal feasibility at these low prices will most likely cause a contraction of available supplies in the years ahead and subsequent price increases. $30 to $40 dollar oil and re-payment schedules will probably require the government to step in and take over many of these companies to insure a steady stream of product coming to the market. Look for another Fanny May Freddie take over - Chip