RE:how low of a oil price can vet withstandHard to say.....I've been slowly removing myself from the oily stuff. Unfortunately not fast enough LOL! I've just averaged down again for the 3rd time in this one as I walked away from others. I thought I had it nailed around the 62 range for crying out loud.
As to your question, it is hard to say. As the price of crude drops, those with cash and and a strong balance sheet are king. Not many out there outside of the super majors and large integrated companies, that will be able to withstand this. Even the super tight successful growth companies may have problems as financing for their capex may tighten.
-after 6 months or so service prices will drop chasing less dollars
-royalties/taxes will drop as governments try to maintain employment
This one has always traded at a premium because of their fiscal prudence. Didn't take them long to cut their capex out of the gate last week. And they can afford to, as all their money spent last year will prove itself out next year.
Safety can be found in the Super Majors, read Chevron, or Suncor. But I like to play for the larger gain over the long run, and I find this one will rise a lot faster once the carnage settles down. Not to mention, everything is for sale...and this would be a cash flow cow for someone looking for a large purchase.
I'm still under water, but I aim to have this as my lone oil holding once I'm done trying to trade myself out of this mess LOL!
Look at this way.....It went UP today! Everything else tanked, including the banks. What does that tell you?
Good luck