progress report, page-6

I too would have to disagree with you Clacoste. Demand just isn't going to drop much, everyone needs electricity, heating and transport. You can save a bit on the fringes, but if oil was to drop to say $80 again everyones starts consuming again as if nothing happened.

Current production around the world is declining, we need new developments just to keep supply steady. A lot of those new developments are expensive, deepwater wells, places with no infrastructure, conflict areas etc. Recent increases in steel prices will directly affect exploration costs too.
So in short I don't see prices dropping too low because a lot of new production will simply shut down. The important thing for us is that our oil is relatively cheap, i.e we are not the ones that will be pushed at the margin.
I also think the fact that both our operating expenses and income is denominated in USD is an advantage with the currency fluctuations.