It's pretty quiet - the low oil price for longer has likely sobered every up from the continuous party days of $100 oil (except maybe ole T'Boone, HH and a select band of brothers).
Why risk cash to drill at the moment?
Easy. If you owe money you need to make interest payments and even principal repayments. With production declining the Red Queen has her foot on the throat and the bank has their hand on your crotch ready to rip your balls off.
By defense I mean simply preventing the bank from ripping out your gonads. So far the play calls have been favoring the offense (bank). SSN playing a "dime defense" (ok its NFL jargon, basically means they have added 2 defensive backs - instead of just the 2 cornerbacks and 2 safeties - by taking away a defensive lineman and linebacker). They have to protect against the pass play (either covenants or equity play) which could put the game out of reach. Hold them off, get the ball back and start generating excess cash flow will see SSN marching down the field (with a simple running game) and getting back into the game.
Can you tell I can't wait for Football to start again.
SSN Price at posting:
0.4¢ Sentiment: None Disclosure: Not Held
