I just saw some comments from Thanksgiving day OPEC meeting. Anyone with royalty income may want to take this into consideration if planning income projections. . .
Terrible news. Oil is down $4.50 already today.
Not surprising news....but I've caught L for the past three years for being a Cassandra. The mix of light 'liquids" and the kinds of oil we use is cock-eyed. The Arabs and Libyans have the best refining crudes. Ours is too light (which explains in part why you mix blend those light oils with thick oils from Canada)
OTOH, wells deplete so fast, if drilling is reduced in 2015, the reserves will fall like a rock. Natural gas will remain about the same likely, unless we can get LNG exported to Europe. Cold winters are helping nat gas.
There has been a big danger in the kinds of over-production seen. And those companies that are going to be hit the worst will be the small companies. With some luck maybe we can see Chesapeake even go bankrupt - Anadarko is likely to own them sooner or later anyway....