RE:Will BTE survive ?Yes BTE will survive if Russia, Venezulella, Iran and KSA survive. All these countries need to collapse before BTE gets killed.
If you listen to today's BNN Calgary correspondece's remark on cost of production of new oil in Iran, you will know that Iran is nowhere near to produce at these price. Iran needs 100's of billions of dollar to develop it's oil wells. Their foreign cash reserve is almost nothing due to prolonged sanction.
Now, you tell me who will lend money to Iran at this low price environment. The viability of new projects is zero or negative.
North sea production is nearing zero, as they do not survive for brent below $50. Dubail is again bank rupt like 2009. Expat labors from third world countries are being repatriated.
Let me know who will keep on producing at $40?
But, you still some flow from high cost produce because of their early hedging. But they cannot hedge anymore at this price. Let me if somebody does not agree to my points. Please approach with logic. Don't say that citibank said that or some hedge fund say that.