haha
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
https://finance.yahoo.com/video/t-boone-pickens-where-oil-014100777.html
I always like to hear what Boone has to say, on any topic. Neal Cavuto is in too big a hurry to ever shut up and let Pickens come to the fullness of his point. Pickens is smart enough to realize that these Persian Gulf monarchs are sitting on a barrel of dynamite. Some "spokesman" for one of the smaller rich oil producers today predicted that even if oil price went to $40, OPEX would not cut.
Isn't this like saying that OPEC does not exist? Isn't the sole purpose of a cartel to keep prices higher than they otherwise would ordinarily be? That's one issue. The other is that while the Saudi royal family and Kuwait and Qatar and UAE produce a lot of oil relative to their populations, they essentially keep ISIS and Iran and other much larger and militarily powerful regimes of their turf thanks to paying off many client states like Egypt, and also having the US air power in their pocket. This gets complicated fast. I would be way over my pay grade to try to guess how all these pressures are balanced, but for sure this whole thing has lot more in common with poker than anything else I can think of. No way are any of them saying what they believe to be likely, they are saying what they believe advances their negotiating position. Like the German minister said a couple years ago, when things get serious you have to lie.
Pickens thinks that oil returns to $90 or more within 12-18 months. I surely don't know, but I put more trust in what he says than the Economist, which recently prophesied $50 Brent.
The other thing which for the most part we do have the information to interpret is that companies that are almost 100% in the natural gas business are also falling fast. How much sense does this make? IMO, none. If I look at a chart of Nymex gas futures, prices are overall higher in 2014 than in 2013. And we are currently ~100% above the NG Nymex low below $2 in 2012.
Part of what is going on is that people are crazy.
Ha
I always like to hear what Boone has to say, on any topic. Neal Cavuto is in too big a hurry to ever shut up and let Pickens come to the fullness of his point. Pickens is smart enough to realize that these Persian Gulf monarchs are sitting on a barrel of dynamite. Some "spokesman" for one of the smaller rich oil producers today predicted that even if oil price went to $40, OPEX would not cut.
Isn't this like saying that OPEC does not exist? Isn't the sole purpose of a cartel to keep prices higher than they otherwise would ordinarily be? That's one issue. The other is that while the Saudi royal family and Kuwait and Qatar and UAE produce a lot of oil relative to their populations, they essentially keep ISIS and Iran and other much larger and militarily powerful regimes of their turf thanks to paying off many client states like Egypt, and also having the US air power in their pocket. This gets complicated fast. I would be way over my pay grade to try to guess how all these pressures are balanced, but for sure this whole thing has lot more in common with poker than anything else I can think of. No way are any of them saying what they believe to be likely, they are saying what they believe advances their negotiating position. Like the German minister said a couple years ago, when things get serious you have to lie.
Pickens thinks that oil returns to $90 or more within 12-18 months. I surely don't know, but I put more trust in what he says than the Economist, which recently prophesied $50 Brent.
The other thing which for the most part we do have the information to interpret is that companies that are almost 100% in the natural gas business are also falling fast. How much sense does this make? IMO, none. If I look at a chart of Nymex gas futures, prices are overall higher in 2014 than in 2013. And we are currently ~100% above the NG Nymex low below $2 in 2012.
Part of what is going on is that people are crazy.
Ha