Oil price is lowering, but for the last decade (according to chart) it never drops for longer than a few months before rebounding. The only exception to this was several years ago when the oil price hit $140 and then (I suppose rightly) dropped for 6 months to steady this extreme rise. I'm confidently that within weeks (early new year) we will see a significant rise (above $90) to healthy levels.
Yep, the marginal cost of producing on NCT's SC and AL wells will be minimal; the fracking wells in Oklahoma a bit more but still de minimis. If they can pump in the Alaska and the North Sea and make money, they can pump and make money onshore Louisiana, Texas and Oklahoma. Hopfully, the reason for the delay on news is that Randy Connally is lining up the funding package and farm-in/out deals for MXO's PSA agreements. Can't be long now for an update on NCT's own activities. If he is helping MXO sort out their deals then any delay in an RNS is forgiven. IMHO DYOR.
" Current production in Mexico is profitable at even lower prices. Pemex, with the majority of output from shallow waters and onshore fields, can produce oil for $22 per barrel, Chief Executive Officer Emilio Lozoya said in an interview last month."
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