Geo-Politics -- Saudi Arabia Could Open The Spigots -- March 8, 2020

Two thoughts:

If this were to happen, a Saudi - Russia production war, it might give us a chance to see which is more resilient? The Bakken or the Permian.

I wonder if the break-even price for about half of Bakken production is $20/bbl or less. In other words, if operators were to stop all drilling except in a few areas; complete the backlog of DUCs; re-frack older wells in Tier 1 locations with current completion strategies; drop the number of active rigs in half (or maybe to a quarter) -- production might drop by half but break-even might be $20/bbl or less.

Again, there is talk that "when" coronavirus begins to fade in April, the demand for oil could go off the charts as refiners re-fill their "pipelines."

Gasoline is as low as $1.67 in Oklahoma City, according to Gas Buddy.