RE:RE:IAE to Become Lowest Cost Producer in the North SeaHa!!!! Hands up on who thought this would be Ferret's response. LMAO! Oh you Waskely Weasel. I'm going to have to start calling you Doomsday. Ha. You are right in that they will not REALLY know the cost of production until after they produce for a while, but that's the magic of math Doomsday, you can make some educated guesses based on independent analyses of the fields, which is what they have done. And through those analyses, you can assign a probability of a certain level of success with the fields, which is what they have done. And their indpendent analyses tell them that they have a very good chance of achieving the lowest cost of production in the North Sea within three months. And ya, the word is getting out because an independent brokerage just doubled their target price on IAE and they will not be the last to do so now that IAE has the pipeline feed. Now, I know math and stats can seem like magic, but really they aren’t, so don't go calling anyone a witch, OK.
As for a low or moderate price level for oil over the next six months, your idea that solar and wind and biomass and sheepdip and what have you, along with Mexican oil exploration and Canadian tar sands expansion, are somehow all going to combine to keep the lid on the price of oil over the short-term is just a bit of a stretch don’t you think. Really? Alternatives?? or any of the rest of it making any kind of an impact of the price of oil over the next five years let alone 6 months is laughable.
As for China, haven’t you heard? The Chinese and the Europeans are ramping up for another round of quantitative easing, and the US Fed is going to be staying put on interest rates. Oh, ya, and there’s a US federal election in the works this year which pretty much always results in a good year in the markets. AND, AND, AND, AT SOME POINT SOON, THE SAUDIS WILL REQUIRE HIGHER PRICES, CAUSE THEY CAN”T CONTINUE MUCH LONGER AT $50 OIL – I mean it’s going on two years already. You see Doomsday, it’s actually not all gloom and doom, but rather just the opposite. So, as I say, hold on folks, our ship is about to come in. Bit of humour there Doomsday, cause our ship is literally about to come in.