Yes but lower oil prices mean no new projects to keep those tanks full. Plus lifting and opersting costs median are about $44-48 bbl if you include labor. Maintenance costs are also high.
Service companies are not reducing their prices and neither are service contractors.
Yes there's a glut out there today but that'll run out after the winter. Plus with no new projects on the book, no money to service older producers, expect oil prices to jump. Financial groups are telling everyone to go long on oil...at least longer for now. The long term investment will more than double overnight.
I bought Oxy years ago for $59 and sold at $88. Four months later I bought those shares back at $72 and we're now almost at $76. Plus I get divs money. Can you say cash cow?
I bought BP at $29 right in the heart of the GOM disaster. Making money my friend.
Penny stock oil companies are no different. They need capital and I give it up. Go long.... no problem. High risk high reward. I've done this with 10 companies and I'm 70% good. Do your DD on the company and its operations and it's overall profile and decide. The market does play into this and as I've said. Smaller operators have it hard to compete BUT that makes them rope for takeover. I've played this out before and have done well.
GLTA
I can wait.......to cash in.
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