Interesting. What about all the small independent companies that want in on the action?
They’re cheaper. The idea is to undercut OPEC and the Russians.
It'll force Putin to negotiate if he's no longer able to fund his war machine in Ukraine.
“What about all the small independent companies that want in on the action?”
The small independents were the first to get vaporized in the 2015-2016 WTI sell-off. For exaample, LINN Energy (I owned some units, sadly,) Breitburn, SandRidge.
By the way, from 2015 through 2021, Texas alone saw bankruptcies totaling $117,362,830,541 in E&P (exploration and production) company debt.
The idea that ANY bank would loan a meaningful amount to a small indy in today’s environment is a zero probability.
“They’re cheaper. The idea is to undercut OPEC and the Russians.”
Good luck on that! We’re not exactly a low-cost producer.
A lot of those companies bit the dust during COVID. But then again, I’ve been reading about “US Oil Companies learned their lesson” (about overextending) for 40 years. There may be more risk takers left than we think.
Also see my post above, about parties worried less about strong and durable profits, than other factors.