Hi bdahl. No denying that! It is dismal indeed, not only in the O&G industry, but everywhere. Already the DOW is heading south quickly today. Eur and Asia markets fell big overnight. Outlook for demand for oil is expected to drop. OPEC announced an emergency meeting. Eventually, we will see some equilibrium. Oil prices will drop, gas prices will follow. As gas prices drop though, you'll see use increase. OPEC will likely cut production and then, coinciding with increased gas use, you'll see prices increase until OPEC decides to increase production. Wild swings and it takes time to catch up.
As for Hemi though, this is the little "golden child" right now. The diamond in the rough. They may get less for production now, but as I understand it, production is increasing so they will likely make up any delta by increased volume. This thing is soooo undervalued that it just won't be linked at all to the regular markets. The volume speaks to this point. Hemi has a better chance of significant gains than just about anything else out there.
This could play well into Hemi's overall game plan. Not to produce a ton of oil and gas now, but rather prove it up, get the pipelines ready, increase the number of wells in the newly found zone, etc. Get it all ready now, so they are prepared when the markets recover Q1 and Q2 next year and oil/gas prices reach moderate levels again.
