Re:Big Oil Companies Should Adopt a Self-Liquidation Strategy
by velik_m on Monday December 28, 2015 @07:55AM
(#10800901)
Maybe because most countries are running deficits - they would have to take out additional loans. I guess it's the same reason poor people buy crappy shoes instead of investing into quality long-term footwear - too many current problems to think of long-term solutions far in the future.
Re:Big Oil Companies Should Adopt a Self-Liquidation Strategy
by jofer on Monday December 28, 2015 @09:36AM
(#10801219)
In a nutshell, everyone has already bought all of the cheap oil they can store. There's a very small amount of storage globally compared to the size of the surplus. (It's not a small amount in absolute terms, it's just that the production surplus is currently very large.)
https://www.project-syndicate.org/commentary/oil-prices-ceil...
Basically saying future pricing will stable at ~$50, anything higher will create opportunity for US Shale Oil companies, anything lower they will not be able to sustain their own economies.
( I actually said something similar / if not the same and got downvoted >< )
Which got me to think, why aren't countries buying lots of cheap oil now and store them somewhere if they know prices will bounce back to $50+ in two years time? Or do setting up the infrastructure cost more then then $15 oil savings.