natepachl wrote:For domestic production to be profitable/attractive for investment in 'Murica we need oil at $40+ bucks a barrel. Oil may climb that high if production is cut in the Middle East; or if demand spikes, but won't sustainably rise above $65-70 p/barrel for a long time. Demand has to increase 1mm barrels to even get to a balanced market.
and i'm not sure or rather, it'll be a loooooong time before it get's near $60+/bbl. IMO. I'm thinking that we'll see it continue to free fall due to emotions and will make a slow climb up to low $40s and then dance in the 40s for the next period.
Tell you what though, I'd hate to be the banks that loaned all that money. These re-determinations are killer. Thankfully, we've got plenty of assets to back it, but there's a couple companies I'd call "competitors" that I'm guessing they're be filing here shortly. Many companies are once again having "lay-off" events.
Regardless of your views and opinion of oil, seeing people lose jobs is never fun.