Originally Posted by
gzsg
If this guy is half right, we will see profit sharing between 30% and 70% for the next decade.
I think he is spot on and this is the best article written to date on the future of oil.
To reduce profit sharing would be the biggest mistake of our careers.
What this guy left out is the fact that oil derived from shale/fracking has a B/E point at $70/bbl. If spot prices fall below that point, I wouldn't count on energy companies sustaining the production he is counting on, much less increasing it.
A friend in the industry told me it is the Saudis opening their tap. Ostensibly to drive out the shale competition. If this is true, this article has some serious flaws. Disclaimer: I haven't vetted out his comment on Saudi production.