90 Dollar Oil Nailed on for Xmas10 Nov 2021 13:17
As I predicted oil is only going in one direction for now.
Forbes Headline is laughable but apt :
'Opec tells Biden If you want more oil pump it yourself'
Quite frankly I do not blame OPEC. Energy ignorance with thinking that we can live without fossil fuels is hitting home. SPR releases in America would draw down stocks and only give a temporary blip in prices before going back up.
The average energy company can be debt free and buy back all of their shares outstanding with only 3.3 years of free cash flow at the current oil price. If the end of oil is near why is their value placed on barrels held in reserve ten to fifteen years from now? This is a huge opportunity. Oil demand will continue until 2035 then a slow decline. The fact is during this decline, oil price will rise further.
The high flowing wellhead pressure on a restricted choke leads me further to believe that Wressle has MASSIVE upside, and with zero water cut. Plus of course, we have other intervals which need to be added on.
The last RNS stated that 'Wressle production highly profitable at current oil prices'...
So 'current' oil prices are highly profitable.
I am actually not sure that the partners fully appreciate the profits that they could be looking at over the next few years here. I for one firmly believe we are in a multi year bull market for oil...if that CPR comes in with something impressive, I tell ya, the partners will have hit the jackpot here !
Good luck to all holders.