Steve said:
I do understand Obama and the saudi's wanting to "punish" Putin for invading another country and using oil prices to do it....
BUT ,... it certainly reminds me of the last time a liberal president embargoed Russia..
Tangible effects of the embargo were negligible, with the Soviet Union simply acquiring grain from alternative sources in South America and Europe.[1] Commodity prices dropped following the embargo, contributing to a severe farm crisis.
sadly the Mid-West is paying the price again
How does mid-west suffer from low oil prices?
For me, it's double edged---used to be, anybody that called himself a 'consultant' would cost you $1,000 per day, what with wages, vehicle, expenses and anything else he thought he could charge for.
Lately, it's been closer to 2k. And I use consultant's--beats paying salary for somebody I don't need most of the time, and I can get better help, at least supposedly.
Anyway, we need one of these 'washouts' every so often to give suppliers a reality check and sort 'em out.
On the other hand, my net has dropped substantially.
On the other hand---so have my costs and we are only drilling to fulfill commitments, hold leases, etc. I will lease with 'commitment to drill' and one does what one said he would---win, lose, or aggravate.
If it continues long enuf and bad enuf---we will continue to pick up iron and do more and more of our own work. Lots of good young guys who could use a leg up, end up with increasing equity, and make us all some $$.