Crude oil = finite resource. I can't stress it enough that one...

Crude oil = finite resource. I can't stress it enough that one day we will not have any and that the last barrels will be worth more than ever.

Oil is needed in almost every industry imaginable, we won't be letting it go soon at all. Not for decades.

The short term POO therefore has little bearing on the need for oil companies to consider where production for the next 20 years comes from. Do we really think, that they think it's not worth chasing more oil now because of the current pricing which is invariable a limited trend? They aren't short term investors looking to make a quick buck on day trades. They need oil for their future no matter the price. If they have none, they cease to exist.

All this translates to me is giving an oil company is more bargaining power for a farm in because of perceived lack of competition for it.

The Saudis are playing hard games that they can't win; backing themselves into a corner with a small puddle of oil on the floor. All a low POO does is increase consumption, of a finite resource. What does this result in? A biiig bounce back when supply starts running low again.

Do not believe for a second that oil companies are not looking at the explorers, even juniors like 88E. These guys forecast 20 years ahead; they aren't as short sighted as the investors jumping out of 88E who probably think that oil is akin to the price of bananas in summer and winter.

I therefore maintain that we do not need the POO to bounce back for a farm in. That would certainly help, yes, but all we need is the knowledge that one day the POO will rise above the cost of farming the stuff and that's pretty much a guaranteed thing - just a question of when, and oil companies would play Nostradamus on that question every single day - their futures depend on it!!!