RE:RE: RecapitalizationMore than anything, Putin is pi$$ed at the US for sanctions that are complicating their new pipeline. He wants blood. US won’t (can’t) cut production to match OPEC+ cuts so he’s targeting US suppliers. (Imho)
I doubt he’ll get far this way. Production will continue.
There’s a limit to how far he can go, but it could be a while.
farmboy75 wrote:
While it is highly likely many producers will have to restructure their financing, be taken over, or go bankrupt, I really don't see VET in that category. With our hedges in place, our ability to further cut the divvy and slash capex ,I firmly believe we can and will weather this storm. While the Saudis and Russia can no doubt pump oil at a huge loss for an extended period, why would they do so? Even they can only shoot themselves in the foot for so long before they say ouch. The Russians only gave lip service to the cuts they agreed to, while letting the Saudis do all the heavy lifting while they and the Americans reaped the benefits. The only time the Russians cut is when their oil was contaminated, and nobody would except their oil till the problem was resolved. They also did not include condensates in their agreed to quotas. This oil price collapse should be a wake up call to the banks and everyone else who have been financing this overproduction for many years now. Lets hope this gets resolved sooner rather than later. GLTAL