Looking forward with AKK, page-6

The same negative garbage is be spouted by the usual suspects.

With zero evidence!

How about we look at some facts

MACRO WTI OIL FACTS:



FACT: 1) WTI oil is up $8.20 over the last few weeks - making shale oil more profitable to produce.

This is supported by data stating Iran's post sanction oil production is flat - Still 200,000 BOPD less than what it produced prior to sanctions.

Saudi Arabia is also currently in talks with Russia relating to the restriction of oil production:

'Russian Energy Minister Alexander Novak said that Moscow was ready to continue the dialogue with OPEC to stabilize oil prices.'

Another statement was made by OPEC President Mohammed bin Saleh Al-Sad - Stating that: 'In late September, the cartel would hold a meeting to consider stabilizing the price of oil.'

Furthermore - Saudi Minister for Energy Khalid al-Falih expressed readiness to take part in the upcoming negotiations.


FACTS ABOUT SHALE:

US Shale appears to have stabilised as the US raised its output forecasts for next year to 8.3 million bpd from 8.2 million bpd.

An executive at a top oil services company told the NY Times: "Saudi Arabia’s oil price gambit may end up having a perverse effect. Far from destroying America’s shale industry — as intended — it is instead making it stronger than ever by forcing producers to eke out ever greater cost savings, letting them stay competitive at far lower prices."

An article In the WSJ supported the bullish Shale position by stating:

Big oil companies are trying their hand at extracting shale oil as a cheaper alternative to multibillion-dollar offshore and gas-export projects, following the downturn in fossil fuel prices that has squeezed company margins.

The Baker Hughes North American oil rig count has risen from a low of 316 at the end of May to 381
Aug 19 2016

A report by Gibson Shipbrokers Aug 19 2016 reported:  "several wells in the Permian Basin, which account for over 30% of US shale production, could be economical at prices below $40 per barrel."  - AKK (Gowdy) has reported to me personally that its break even is $31 a barrel or $45 when all costs are included at 250 BOPD.

Also Shale oil decline rates have improved drastically in recent years. When the shale industry first started a decade ago, decline rates stood near 90% but are now said to be nearer 20% over the first four months of a well’s life.

Additionally, there is a lot of room for Shale oil producers to ramp up well output; currently - there 381 rigs in operation which falls well short of 1,609 peak seen in October, 2014.


FACTS FROM AKK SPECIFICALLY:

AKK In response to the severe downturn in the price of oil, Austin’s focus has been to transform into one of the lowest cost producers in the industry. - This statement is supported by AKK's $45 barrel at 250BPD break even point.

AKK are specifically targeting oil in the: "highest intensity hydrocarbon leakage zones" - Yet a dishonest AKK poster has been incorrectly claiming that two of the three wells were not going to produce oil. LIE!


AKK is not going anywhere despite the constant narrow vision of a few posters on HC who cannot see past their nose. Such HC down rampers have a grip with AKK because:

1)They invested in AKK at the wrong part of the macro oil cycle and during a time where Saudi Arabia was intent on bankrupting US shale.
2)These negative down rampers blame the same factors which bankrupted many other US shale companies specifically on AKK because such down rampers fail to understand how macro oil cycles and Saudi attempts to bankrupt shale impacted upon AKK's profitability - and the profitability of other US shale producers.