You would have to think that at $25 a barrel most small operators are going to hit the wall, and all offshore stuff on the drawing boards will get stopped.
I can't see places like Puffin making the numbers work at $25 a barrel, and as such in a couple of years we will shoot back to $100 a barrel as no additional supply will come on tap to match up with the demand.
All these guys need to do is batten down the hatches and ride it out. I can't see $25 a barrel, as OPEC and Russia need more that $50- $60 to support their dreams.
As such they will just start to turn off the taps, until prices move back up.
If SAE gets to 6 - 8c a few of us will raid the piggy bank!
SAE Price at posting:
10.5¢ Sentiment: LT Buy Disclosure: Held
