Skip to main content
Message Font: Serif | Sans-Serif
No. of Recommendations: 0
So long as Saudi Arabia is intent on destroying US and other competitors I don't see oil rebounding. I live in an area with a lot of frac sand is mined. Those guys are starting to shutdown because oil prices don't support recovery costs for their customers. RIG is at the high cost end of the oil production. It's dead until oil prices rebound.

On the bright side, the Saudis are making a costly bet that they can hold out long enough to wreck the non-OPEC competitors. They have the lowest oil production costs but the lost revenue is going to squeeze their economy hard eventually. And that means political problems for the rulers.

Right now I think its a costly game of chicken. For RIG that means hunker down and try to survive. I think they can do that but I don't believe the stock price will recover for a few years.
Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.