RE:RE:RE:RE:RE:RE:Will close below $8.50we have seen a lot of cost reductions this year and more planned for next year.
it’s kind of amazing that the expense side was that over-inflated but I guess at 100 oil everyone wanted their share of the pie.
but those days are gone for a while I figure and with lowers expenses and increases in production the good companies can cuts costs, lower dividends and at the very least break even until price recovery.
The Syncrude partnership has a few strengths;
1-major capital projects are behind them for a few years and more if necessary.
2- they cut expenses significantly in 2015 and plan on more cutting in 2016
3-they have an upgrader and sell at light oil prices
4-Exxon actually manages the operations and they have the systems and controls to make it more efficient, even though it’s taken some time to get more efficient but with low oil prices this will help lower costs out of necessity.
5-long life reserves
6-increased production if they can make the mine and upgrader more reliable, which was the plan behind capital projects and then production will increase and in effect lower costs per barrel.
not many E&P companies can make money at 40 WTI or even 50 really.
the integrated companies like SU, IMO, HSE can make good profits on the upstream side and they can use their stronger share prices to buy on the cheap and make off like bandits in the long run.
but they can’t tell us that because then we will want more money for our COS shares.
It’s a game of cat and mouse, and guess what COS is the mouse.
It’s not fair, but that’s life and maybe the new reality.