Before Monday rolls around and the analysts start talking their book at CNBC and elsewhere, take a look at this short article on oil prices from Market Watch.
Moreover, this supposed floor reflects the “full cycle costs” of production, they said, arguing that this overlooks the fact that many producers in North Dakota, Texas and elsewhere have already acquired acreage, contracted rigs and even hedged crude prices.
“We think what counts at this stage is half-cycle costs,which are in the significantly lower band of $37 to $45 a barrel. This means that the floor is falling and may not be nearly as firm as the Saudi view assumes,”
There is probably no commodity or industry of of which the death of all or parts of it have been so routinely predicted and so consistently wrong. Most of the time the so-called experts overlook or don’t understand the technology of the industry, particularly the advancements in exploration and production. Someday, no doubt, someone is going to be right and the industry willfade away. You and I will be long forgotten when that happens.