Barrel Costs, page-38

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Sdaji

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08/10/14

22:40

Post #: 14096643
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Originally posted by OilGoldGas ↑

One big question now with Poo under some pressure and hedging in place is should sea front load these wells put them on huge chokes and grab the cash at $90 plus while its on offer... Theres no use chasing declines and small eur gains if its at $10 less per boe..

i wouldnt be surprised to see some move towards larger chokes and front loading in the current climate...HBP the acreage, maintain the balance sheet health , and swoop in to take advantage of stressed companies who have over committed..

those opec countries have some cash reserves, but they also have economies and budgets that will be under severe strain if POO stays low for long...

i definitely see Saudis adjusting production down at some point in the short to medium term, as they cant afford to hurt Iraq financially or they will have an entire collapsed state and border to protect, which will spill into Jordan and then half thier entire border will be under sttack...

the Saudis can tickle the edges a bit on POO, but they can ill afford to hurt Iraq and cause a collapse...

If you want 5 minutes very valuable reading, google the fiscal break even points of opec members...average price $89.50 - $93. Some as high as $130...

fiscal break even is not a break even production cost per boe, its a govt fiscal reliance on POO

A good chunk of the Eagle Ford break evens are about $75

theres a lot of pain for a lot of producers as soon as it goes under $90. This pain will cause a lot of diplomatic pressure, especially on OPEC members...

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I love your work, Condog. Thanks for sharing your ideas and analysis. Always appreciated, and for several years now.

SEA Price at posting: $1.22 Sentiment: Buy Disclosure: Held
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Barrel Costs, page-38

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