RE:Oil at $80, 90, 101??Most experts think we are $55/avg. This will keep most shalers profitable but not encourage them to add production (we hope). For CPG, its going to take 1.3 B$ to keep production flat at 170 kbpd. They will make over 1 B$ at 55, break close to even at 45. Banks have stopped giving free money, so now everyone must live within their means.
Saudi need something like 80 to keep economy afloat - they will try and get this type of price structure.
So CPG is starting to mature using waterflood to enhance production as well as punching new holes. . Some think lack of new investment may cause shale production to drop precipitously, but for this year, I doubt we see much decline.
I only think aboput near term and at 55, CPG will do fairly well.
Please god, let there be another oil boom. We promise this time, for sure, we won't piss it away.