in all resources companies there are tricks that are used to confuse people about how much money projects make
the most common one is to say 'costs of x are xx' - when the costs only reflect operational costs - not exploration, head office etc.
so a well might be 'cashflow positive at US 30 - but the oil company that runs it might not make any money unless oil is $60
you also need to keep in mind the US has shut in something like 70% of the wells it had running this time last year - so averages now are for the lowest cost biggest volume wells - and that wont stay that way for more than another year
still - prices of commodities actually have more to do with marginal supply and whether its a buyers or sellers market - than what the cost of production is.
so oil can keep going lower if volumes of oil stay healthy, oil buyers keep feelign they can buy lower - and their need to buy isnt urgent.
STO Price at posting:
$5.99 Sentiment: Sell Disclosure: Not Held
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