Chesapeake Energy Corp (CHK)

[LouisDesyjr]

Oil well reductions

This will help a little to get prices up, but it is only a handful of wells in one state. The real problem is that Russia, Iran and Saudi Arabia are 'at each others throats' and trying to punish each other.

The swing producer, Saudi Arabia, has the choice of flooding the market with oil or not and driving companies like CHK out of business plus all of the other shale producers.

At the moment, there is not reason for them to stop when they are so close to one of their objectives, bankrupt the shale producers plus the banks that financed them; meaning that those entities will not be around to finance new drilling when they let prices rise.

If this was just supply and demand, enough supply would have been taken off of the market a while ago and prices would have risen. instead Saudi Arabia wants to drive companies like CHK out of business.

Louis J. Desy Jr.