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Msg  535574 of 551719  at  12/3/2023 10:42:33 AM  by

marpincan


 In response to msg 535557 by  Ed Ajootian
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Re: Saudi Arabia could 'flush' the oil market with a flood of supply to regain control ov

 It took longer than it should have for production to go down because most companies were in debt to the banks big time. The only way to pay that debt was to produce as much oil as they could to earn that money. They did this buy cannibalizing their future - producing as much as they could from the best acreage they had and selling it for peanuts. The alternative was to go under and the banks/ creditors own the company. This time is very different - way less debt which means that during low oil prices, companies can batten down the hatches, maintain or lower production quickly and ride it out.  They only have to earn what is required to pay the bills, pay the dividends, pay service costs on a very reduced debt and keep shareholders reasonably happy. No bankster gun to their head so no giving away maximum production for peanuts as their survival costs are way lower. IMO


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Msg # Subject Author Recs Date Posted
535578 Re: Saudi Arabia could 'flush' the oil market with a flood of supply to regain control ov mktownson 2 12/3/2023 11:25:38 AM




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