POO not in the poo, page-5

If I spend a lot of $$$ drilling for Shale gas and oil, proving the resource when oil is $100 per barrel, then I make a lot of money and there is more than enough to cover my costs. Normally the Saudi Arabia et'al partners would constrict supply to bring the price back up though. IMO they have looked at it if they keep pumping oil out at the same rate, then there is an over supply. Now that's good at the bowser for us all. For a company spending $$$ on drilling shale oil and then environment lobby groups harping on the concerns about frac'ing and now having some excess oil floating around, we have a problem. Do the governments ban frac'ing or do they look at their self sufficiency? Do they close shale oil and gas and open themselves to litigation or do you just ride out the storm. Me personally if the gutters ain't blocked I'll ride it out, if they are i'll clean them, in the end I am not wet, still here and I still need rain to grow the crops or the Oil/Gas to get them to the market. So life moves on and oil does what the markets want it to do, even if the governments need to play politics to empathise with the shale producers and environmental lobbyists they will. At some point the balance or bubble is breached and a new trend is formed.
I think you will see a lot of companies going on the amount of $$$, support of major shareholders and banks they have. You could see some hedging happening, just to make sure the Revenue or profit is greater than the COGS.

Just jabbering on while drinking my scotch and coke. Just reminded me I need to go to the dentist....