Lonestar West Inc. V.LSI

Badgers numbers look great

[PAGODA5]

Lonestar's numbers should also be good.  I am surprised we didn't see an uptick

[MagicBeans]

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[PAGODA5]

Price is right but not much for sale down here at this level.  

[MagicBeans]

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[PAGODA5]

Since when have oil prices cratered for a decade?  Every body thinks this time is different.  Guess what, the time before when oil prices were at $10, every body thought that was different too.  It is a commodity controlled by a cartel.   The Saudis will cut production in 2015.   

[MagicBeans]

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[PAGODA5]

They are far from self-sufficent.  The US is relying on fracking old wells and shale deposits.  Very high cost, low return wells.  The wells produce then die off quickly increasing rig movement and rasing costs.  They would be able to frack probably a couple more years but then ithe oil would run dry.  Self sufficent for a few years maybe, but not long term.  That is

[MagicBeans]

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[MagicBeans]

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[PAGODA5]

Undoubtedly.  But where there is fear there is opportunity.  I am actually snooping around with a friend who lives in Calgary for opportunities in real estate right now. Never run from a fleeing capital.   

[MagicBeans]

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[PAGODA5]

I am just sniffing around now for real estate.  I like to see more blood in the streets before I delply my capital.  I like to see a nice vacuum created by money outflows first before buying anything like real estate.   Calgary real estate is probabaly overpriced but will it crash  like US real estate, short answer, no.  It may correct and that is what is happening now. &

[MagicBeans]

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[PAGODA5]

The Saudis can't do this indefinitely.  Their oil fields are good but to keep production at 10 milllions barrels a day for another year, you could see many of their prime sweet crude fields see dimininshing returns.  Plus they will bankrupt many of the OPEC countries that rely on higher oil prices.  What will happen is that production in these countries could collapse entirely

[MagicBeans]

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[PAGODA5]

That or there is other reason for continuuing to pump.  ISIS, Russia, Iran.....I don't think the world knows the half of it.  Whatever happens, oil supply will likely contract more than people think and when things turn around and the Saudis cut production, you watch what happens to oil contracts.  

[MagicBeans]

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[PAGODA5]

Ontario and Quebec have nothing to gloat about.  Ontario has $300 billion dollars in debt and Quebec is essentially an economic laggard since well, forever!     Alberta is still in better shape then those provinces and plus they have been through this before.  They wll weather the storm and be back.  I am not worried about the economics of Alberta long term.   

[MagicBeans]

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