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.

Non-Tech : Kirk's Market Thoughts -- Ignore unavailable to you. Want to Upgrade?

To: Fiscally Conservative who wrote (13776)	5/20/2022 9:31:41 AM
From: Kirk ©	1 Recommendation Recommended By berniel Respond to of 26819

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.