Saturday, May 9, 2015

Madalena Energy article on Seeking Alpha


This is good article that summarizes what the company is currently doing in Argentina. This remains one of my top specualtions as oil prices are not definitely rebounding.

Oil is definitely rebounding as the rig count has now dropped for 22 weeks in a row. The lower rig count is leading to a peak in Us production. We should see the US production rate drop rather quickly as theses oil shale wells deplete quickly.

Lower crude prices have also boosted demand, while the risk of supply disruptions across the Middle East is growing amid sectarian tensions.

“We have now reached a turning point,” Hall wrote. Growing demand and supply pullbacks “rendered all the doomsday forecasts self-defeating.”

I still am maintaining my outlook for an end of year crude price of $70-$80 per barrel.

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