Warren Buffett regrets $10B bet on oil
Corbin Hiar, E&E News reporterPublished: Tuesday, May 5, 2020
https://www.eenews.net/stories/1063050681
“It was attractive at oil prices that then prevailed,” Buffett said of Berkshire's Occidental bet. “It doesn't work, obviously, at $20 a barrel. It certainly doesn't work [at] minus $37 a barrel.”
The famous investor predicted that “oil production is going to go down a lot in the next few years because it does not pay to drill.”
“It was attractive at oil prices that then prevailed,” Buffett said of Berkshire’s Occidental bet. “It doesn’t work, obviously, at $20 a barrel. It certainly doesn’t work [at] minus $37 a barrel.”
I didn’t own Occidental but did own others and held them right through that oil depression. Some had to lower dividends temporarily but they kept paying and look very good again now.
Now that Biden is working with OPEC, OPEC is the key. If they start producing a lot more they can bring the price down. It’s their call which way they want to play it.