ERHC Energy Inc (ERHE)

[nordicroots]

All good points and I agree that this is indeed a fairly established part of the business cycle in the oil business for many decades. However, with that said, what OPEC has essentially just done is something completely out of character for business as usual for the past 50 years or so - they are no longer content to be the swing producer for the sake of protecting a certain price point and instead are now protecting their respective levels of output by shifting to a strategy of competitive pricing. To me this suggests a heck of a lot of pressure being exerted on unconventional (shale) producers. ERHE is a conventional play and if/when a proven reserve is established we could be sitting in a much better position going forward. The point here being that, past may not be prologue (or at least completely), in the same way it was in past cycles.