Thankyou OPEC, page-2

I have taken this post by 'Rolling' fom the FAR thread as I think it is a good point. There is short term pain to the oil price, but long tern CVN will benefit from any reduction in supply by shale producers imo......


'Give OPEC a kiss.

They may not be on your Christmas list this year but they may be next year.

They could have voted to reduce production. They didn't. Had they voted to do so, the shale producers would have been the winners. Instead, it's the shale producers who are slowing/stopping production.

What OPEC (and the Russians and their cartel of 4) have achieved is a reduction in shale production and now an oversupply of service providers (rigs etc).

When a cartel can knock out the high cost conventional and UNconventional producers the future becomes a lot brighter for conventional producers with light oil with good flow rates. And when their is an oversupply of rigs, boom. Low cost exploration, appraisal and production contracts.

Winning.

So $70/barrel may not seem like a party now, but if Senegal is as good as we think, it just got a whole lot more valuable.

Old fashioned conventional is good. It's a survivor.

IRR'