$OVV Read an interesting article though today. When oil hit lows in 2008-2010, shale exploded the following years to $100+, reaching $145 at one point. All oil producers thought they hit the jackpot and overextended like crazy thinking oil was going $200+. Then in 2014, just like that, oil had the rug pulled out. Dropped well below $100. But companies had debt and future expansions in motion to pay off. So what did they do ? Pump as much as possible for 6 straight years trying to make up for the loss in prices. Until the present, where we are now. Companies are smartly scaling back future expansions, cutting budgets, cutting output, and trying to operate like a normal, healthy company in order to survive. If they had done that in 2014, oil could have returned to $100+. So now we have companies left with the only option. To be smart, knowing oil could collapse again. So what happens now? We go back into the cycle. Oil will go back to $100+ (just my opinion)
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