Twin Butte Energy Ltd TBTEF

RE:RE:RE:RE:RE:Updated Guidance

[greenhawk]

If I did not believe that oil would recover  I would not be invested in TBE or any other oil stock. I would invest  in companies that can benefit from sustained low prices airlines, freight companies etc. . Why sit and tough it out? 

I see todays low prices as totally unsustainable. Actually, I think it's total madness.

Capex cuts are coming in at just about 20-30% across a wide rance of companies from offshore to fracking to conventional and all this because of a 1 or 2% supply imbalance (which is actually quite normal at this time of year). I think what we will see is a total overreation in the other direction and $120 + oil in a years time. The world has to replace it's declines in order to meet the 91.3+mb/day demand. It is not going to do that with 20+% capex custs. If this keeps up look for a 5 mb/d supply deficit by 2016. I  do no beleive that SA has the capacity to meet a large supply deficit.

Oh and did you notice that demand in the US was up 4.1% YOY in the latest EIA report. Who knows what low prices are doing to demand in very price concious places like India,

Yes, there are dangers to this bullish thinking, peace breaking out in the middle east.
or a black swan event like war with Russia but no investment is without risk.

Just my view and who knows if I will be right but this is where I am placing my bets.