By: ETFalpha

ETFalpha — Mon, 29 Dec 2014 14:25:39 +0000

In my humble opinion the price tumble has been driven politically. Here is a very interesting piece. => Oil Coup: The Secret U.S.-Saudi Deal – OpEd

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By: John Chadderdon.

John Chadderdon. — Mon, 29 Dec 2014 14:08:54 +0000

This is ridiculous. Sorry OPEC, you can’t have it both ways. On one hand, OPEC won’t cut production, preferring to let the market set the price. Now, non OPEC should cut. Why? OPEC may have 40% of the world’s production, but add up the 15 largest “For profit” oil companies and you will find this group too produces 40% of the world’s oil. It is interesting to note that the majority of OPEC’s oil fields were found by the U.S./European major oil companies. Sooner or later capitalism will win out. OPEC’s relevance declines every time “Exxon’s” production rises. The OPEC countries have used their oil revenue to build a “social structure” that is costly, maybe too costly. Exxon says they are “prepared for $40”, which when most estimate Saudi needs $60 just to maintain their hold on their population, spells deep trouble for OPEC. Goodbye OPEC, it can’t come soon enough.

John Chadderdon, CEO
Quest Offshore Resources, Inc.

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Comments on: UAE Energy Minister Slams “Irresponsible” Non-OPEC Producers For Oil Price Tumble, Calls On Non-OPEC Output Cut

By: ETFalpha

By: John Chadderdon.