Can STO survive, page-13

Before we start pretending to be Henny Penny here....start buying more at these prices & average down....
Lets think about a few things here long term, i don't think STO is the problem or has to worry about surviving, but if i were a Saudi....then i would probably start worrying a little...just a little....
The latest OPEC World Oil Outlook, issued just before Christmas, estimated that the future investment required to cover future demand for oil by 2040 was about $US10 trillion, or about $US400bn a year. It saw oil prices rising slowly to about $US70 a barrel in 2020.
Unless there is a meaningful recovery in oil and gas prices this year, it is almost certain there will be further big reductions in industry investment in future production, which is why some analysts are tipping a ‘bust and boom’ scenario under which the oil price rebounds faster and harder than OPEC’s base scenario assumes.
The ability of the US shale oil and gas sector to dial production back up very quickly could force OPEC to try to sustain prices at levels that cap the impact of US producers.
It is improbable, however, that OPEC would be prepared to contemplate an indefinite period of oil prices at current levels, the recent Saudi Arabian budget highlighted the self-inflicted pain of the strategy of oversupplying world markets to drive out higher-cost volume.
OPEC and other international energy agencies expect that gas will be an expanding element of the world’s energy equation, with gas’ share of global energy demand rising from about 23 per cent today to 28 per cent by 2040.
Demand is growing fastest in Asia, with Asia’s imports of gas forecast to rise about 15 per cent by 2020 and continue rising for decades beyond.
Whether that transpires, or not, might depend on the ability of Chinese policymakers to maintain growth rates and of the rate at which their planned switch from coal to gas for electricity generation eventuates.
Over the longer term, the supply and demand settings for Australia’s LNG sector appear very positive and may well be made more attractive by the impact of the current low oil prices on potentially competing capacity.
In the near term, of course, the projects will be under pressure just to generate cash, let alone a profit"

Something to think about fellow investors.....start thinking about buying more & averaging down....