People who write about oil going over $200 are full of nonsense. It's extremely unlikely that oil will be trading for over $200 on any kind of sustained basis in the near future.I agree. But it is interesting the qualifying statement the author makes: "... on any kind of sustained basis in the near future."
So even author admits that we could see a spike to $200 oil.
As I've been posting for the past few days, folks are talking us into, or saying it another way, folks are preparing us for $120 oil on a sustained basis.
Having said that, some folks will say we will see $60 oil, or $80 oil, pick your number, before we see $120 oil. I certainly have no idea. But it certainly makes for a more interesting Bakken if it wasn't already exciting enough for you.
50,000 bbls at $120 = $6 million. About the cost of a Bakken well. And "every" Bakken well reaches 50,000 bbls by the end of the first year. Many reach that milestone in six months. Some in three months.
No comments:
Post a Comment