RE: RE: Dont rushBut you have to keep in mind that the bank analysts are using $85 oil in there forecasts of cash flow, and hence evaluation.
If you want a negative thought, try this: the very success of the Bakken and other shale plays could be the unwinding of oil prices - just like it has done for GAS. WTI was already trading at a deep discount to Brent because of the domestic glut. Unless the US and Canada become more aggressive as net exporters, the domestic glut could widen as more an more companies produce more and more oil and gas. Becoming aggressive exporters means basically reversing the infrastructure, such as Enbridge has proposed, and as TransCanada was trying to with new pipe.
Not long ago oil exploration was a high risk game with a large possibility of dry wells. Now it is an engineering proposition with virtually no dry wells. The domestic oil scene has changed permanently. Unlike natural gas, oil can be more easily exported, but it takes infrastucture and political will. Both in short supply right now. Result could be downward pressure on domestic prices no matter what happens to world demand.
Terr