Thanks for the heads up Barra , Yes Venezuela pas been very problematic for some years ,recently Both Halliburton , and Schlomberger , oil services giants have pulled out of Venezuela due to payment defaults , their production is almost halved , and as they have only heavy sour oil their average o.p. is around $25 pb it is hard to see them continuing to produce at these levels . That in itself would be 2.5 mil bpd , and enough to cause a World shortage .But there are many other distressed oil nations around the world like Venezuela . A year ago Goldman Sachs stated that the Saudi oil policy would take too much oil off the market and lead to much higher prices because of shortages . Its not that there is not enough oil , but this kind of financial destruction will take years to repair . Meanwhile American Big Oil is following the Saudis into the Bond and debt markets so as to have enough cash to pay dividends and hold onto their investors . Things are beginning to implode in the oil industry .You would think a change will need to come soon to end this madness ........
MRM Price at posting:
44.5¢ Sentiment: Hold Disclosure: Held
