Fadel Gheit
Fadel Gheit
bulk easy last oil three
The bulk of the replacement in the last three years was through acquisitions. The easy oil has been discovered.
continue market oil prices remain stocks
As long as oil prices remain high, oil stocks will continue to outperform the market in general.
bullish driven exceeding fears forecasts industry largely oil past potential prices supply year
Oil prices have been exceeding the most bullish forecasts for the past year and a half, and that's not driven by industry fundamentals, but largely by speculation and fears of a potential supply disruption,
highest invasion iraqi kuwait level mark oil outside
Oil prices, ... are probably going to go over $26, which will mark the highest level outside the Iraqi invasion of Kuwait in 1990.
continues demand economy global relatively remains seems supply
Demand continues to be relatively strong. Supply remains tight. And the global economy seems to be doing OK. As they say, no harm, no foul.
advice almost bad breakup deal either good handled pay pocket poor strategy threw
CNOOC handled it very badly, with poor strategy and poor decision-making. They had the deal almost in their back pocket but they threw it away, insisting Unocal pay Chevron the breakup fee. Either they got bad advice or they didn't take good advice.
cooling demand economic expect growth oil price
Any cooling in economic growth immediately will take oil demand down so one would expect the price will come down.
solution
And there is no near-term solution for any of these things.
rumors taken
Rumors and speculation have taken over the market.
charged headlines situation
You put all these headlines together, you see the situation is getting charged up and getting out of control.
evidence worry
This is evidence that we really don't have to worry about shortages,
company followed forecast industry lower oil production reduce reserve spending
This is an industry in crisis. Every oil company will reduce their production forecast as lower spending will immediately be followed by lower production and lower reserve replacement.
higher reflecting stocks support
These stocks are not reflecting $50 or $60 oil. They are probably reflecting $40 oil. But this is not realistic. The fundamentals support a higher price.
emotion field playing
The speculators are going to have a field day playing with emotion and rumor.