There may be lots of volatility ahead in the US (and in the SP of US oilers) BUT as the USD gyrates slowly down, US competitiveness should gyrate slowly up (I hope). This should be bullish (overall) for US O&G industry.
If the US dollar were to dump quickly and completely, oil as an international commodity will rise comparitively, and other things being equal, SSNs profits should rise.
In comparison to US based oilers like SSN, Aussie based oilers continue be squeezed tightly by the AUD. The squeeze may tighten further for the juniors as some of the upcoming giant gas projects start to tighten the O&G services industry.
The AUD will of course dump at some stage but not before the USD IMHO.
SSN is in my view pretty safe for the time being, regardless of how nervous some traders become.
And IF ?? we are all to be eventually "rooooned said Hanrahan", at least we will still have plenty of oil to sell by the roadside for some hyper inflated dollars.
Now that the Niobrara is starting to prove itself (as per ou last ann.), the only major LT risk I can see may be increases in Government royalties and taxes. This risk lives everywhere in every sector so selling one stock to buy another may not help you here.
cheers
SSN Price at posting:
6.3¢ Sentiment: Buy Disclosure: Held
