|
| And even if everyone agrees to cut production, inventories are still being built. Oil has a demand problem that can't be solved with more and more supply cuts. Inventories will continue to build. Eventually, we will run out of space to put all this stuff. Maybe we could fill up that impact crater out in the Arizona desert with oil?
I think we will see consolodation and acquisitions in oil patch from the large integrated oil companies buying up the little guys. Last year, Chevron's bid for Anadarko was beat by Buffett-backed Occidental's $38 BILLION bid..... Lol..... I bet Oxy wishes they had that money back ($80 stock now trades @ $12)...
My guess is that Chevron will go shopping later this year and get some really good assets for pennies on the dollar. But will they wait to buy the small oil carcasses out of bankruptcy? Or do they throw a lifeline to the little guys before it all implodes?
| |
|