Transocean Ltd. (RIG)

[ogbull]

Wanka, think things out.

By forcing crude down to $50, they lose more then $50 per barrel for the oil they produce and will continue to lose $50 per barrel. This makes them the BIG LOOSER in the long run. In other words, they are selling their oil for half price just to hang on to market share in a glutted market. When the price rises again, as it surely will, they be facing the same supply/demand problems all over again. The continue to hold current production levels does not make financial sense especially in view of the fact that technology has change the playing field, and will continue to do so. OPEC can't win this game in long run. They would be far better to give up 20% market share to get a stable price at around $75. This is what's gonna happen anyway.

In other words, the Saudis have started a price war that will hurt them tremendously in the end. The old bull-headed oil minister made a huge mistake. He held his office because he had the support of the dying King. I don't think the new King's advisor will recommend holding on the old managment team who has now lead them into a major crisis.

I think the new king will move quickly to appoint a level headed politician to end the price war and get crude back up to at least $75 where it belongs.

For sure, there is just too much oil to support $100 per barrel. Maybe 10 years from now... but not now.