RE:OPEC poor nations Nessrookie wrote: Forget about Iran Saudi. They still have deep enough pockets and people willing to borrow to them at cheap rate
1) Venezula. They just awarded 3.2 billion in contracts. But you need to finance it yourself and they will pay you with oil down the line. They are also looking for 7 billion in bonds to push Nov payment down the road. They are offering future payment with oil and no discount on bonds Plus using Citgo as collateral Citgo was offered up by Chavez in 2006 at $10 billion with no takers. Since then they have issues 3 billion in bonds against it with half due next year. They used to producer their own light oil to blend with their heavy crude but now have to purchase it. They are slowing down because they can't afford it. There is 2 million plus barrels per day that could collapse With calls for no more than $45 to $50 oil for the next year no one wants to touch this offering S and p has said purchasing these bonds is the same as giving your money away
2) Nigera. After a month of nothing. The delta avengers just attacked a pipeline yesterday. They only have one way to stop them. PAY THEM as they did in years past. But with $45 oil they can't afford to
3) Libya. They run out of money in 2017 unless they can get oil production up to 1.6 million barrels again. But they need money to do that. Government is still split
4) Angola The revenue they are making is barely enough to pay for the debt owed by the country and state oil company. They are asking IMF for help. But IMF demands changes which won't happen in a corrupt African country
So so lower for longer does correct prices and look to these 4 to be the ones to help correct it
I stand corrected there is some companies making money at oil at this price. But nt many. And eythere isn't any oil producing nation making money at these prices. They are all burning thru reserves and driving themselves deeper into debt. Something will give eventually.
Good post. Now mention the loss of production from non OPEC nations. Like Yemen , Columbia , Syria , Sudan , China and the list goes on. The only non OPEC countries increasing production are Russia and Kazakistan. And Russia is almost broke too and luckily the big projects in Kazakistan are a few years out yet.