GREY:LSTMF - Post by User
Comment by
mouchieon Mar 31, 2015 10:08am
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Post# 23580980
RE:RE:RE:death spiral is certainty below $70 wti
RE:RE:RE:death spiral is certainty below $70 wtichantal2468 wrote: Yes Orlandofl...but....it's at the expense of production....there is an inflection point where it is impossible for them to survive at oil below $70 wti...that point is about 25k b/d , which will be reached by June 2016 without further drilling....I defy anyone to dispute that fact with concrete math
chantal2468 just because drillers have stopped in the short term does not mean they will not be drilling come fall. These guys have to generate product to make money and that is why we are in the situation. The lower oil fell the more they had to produce to keep the books up. Believe me if these small guys want to stay in business they will start drilling again to keep the wolves away from the door, who wouldnt? There is no one in business who thinks that it is better to go bankrupt than to stay afloat, every CEO wants to keep their big paycheck no matter what the cost.