$20/Oil?

[JakeStarkey]

Alan Greenspan, though, pointed out the long term damper of slow and low long term capital investment overseas. That, China's slowing economy, lighter demand in India and Brazil offsetting a spurt in the Pacific island archipelagos etc, the Saudis' continuing pumping war to break Iran and Syria and Russia and our shale industry -- all points to a boom and bust roller coaster for years to come.

 

[william the wie]

$2/BBL oil equivalent in natural gas has hit in PA already so I am not risking any kind of prediction on this one. The cost of Hydrogen appears to be dropping at a root function where the fractional exponent is less than 1/2 (1/2 exponent is square root 1/3 is cube root in case you forgot). My math skills are inadequate to make any kind of prediction in regards to this mess.

 

[MarathonMike]

Is anyone a serious oil invester? How you playing oil? I think there is a good risk/reward setting up if crude breaks below 40 again.

 

[JakeStarkey]

Is anyone a serious oil invester? How you playing oil? I think there is a good risk/reward setting up if crude breaks below 40 again.

I agree. But I am going to wait for Thursday.

 

[william the wie]

Is anyone a serious oil invester? How you playing oil? I think there is a good risk/reward setting up if crude breaks below 40 again.

Me, I stick to pipeline companies. Marginal Cost equals Marginal Revenue at something like $55-60/bbl without pipelines. Pipelines should drop that number to $45-50 or less and extraction/exploration costs are dropping in some sort of inverse power law curve. Then there is residual value as wells convert to geo-thermal power stations. I have no idea of how to price project with something this complicated.