I agree with the whole article as it does put it all in a very...

I agree with the whole article as it does put it all in a very simple perspective.

We all need to remember how Reserves are priced (the SEC perspective used by publicly listed US companies) and that the double edged sword of low oil prices

1. Lower price means possible Reserves downgrade (because may not be economic for company to produce)
2. Lower NPV even with the same Reserves

On the bright side though, October is (usually) month where WTI drops. Historically WTI has dropped in 13 of last 20 years and six of those have had approx 10% or more price decline (big one of course 2008 with 30% ish). Decline tends to be short lived (lets hope so) with Nov/Dec reversing that trend with 13 rises during that 2 month period with 6 being more than 10%. Fair warning though, 2008, the GFC year, oil continued its fall with a further 30% ish fall.

There are mid term elections coming in US (1st Tuesday on Nov) - always a political angle to consider but doubt it will have much of an effect.

Challenging period.