Saudi Prince Alwaleed bin Talal said in an interview yesterday that “oil is never going back to $100.” Let me translate: “We are sick of Americans and Russians taking our market share, and we’re taking it back forever.” These were strong words from one known to publicly disagree with his government, and whose personal wealth has been estimated at over $20 billion.
Continued weak oil prices are seriously damaging US energy companies with companies like Breitburn Energy, Goodrich Petroleum, and Continental Resources among it’s biggest losers in recent months. I remain very bearish for several reasons…the Saudis’ apparent serious resolve to reset the markets, downward trend in heavy hydrocarbon demand, and the high break-even costs for unconventional resources. I believe we are in for a long haul here.
Filed under: Energy
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