Quote from: RE on Dec 27, 2025, 10:18 AMBankers tend to be reluctant to loan for drilling and exploration when the oil is selling for $58/bbl and it costs $80/bbl to get it to market.

Depends on the amount of natural gas being sold for $8/mcf to LNG markets that come with it. The world isn't easy anymore, oil or gas, the solution gas reservoirs powering the American oil powerhouse aren't Prudhoe-like fields, but resource plays. And everyone single US LTO play consists of a solution gas drive reservoir. If the remaining peakers would focus on that they'd make a bunch more sense than the "slap a curve" on it routine, or the "no more room to drill!" or whatever the survivors are pitching to the rubes nowadays.

Want to bet that in general they don't even know that alleged "oil" wells are becoming REAL gas wells within 24 months of the start of production? It is almost as though they TRY to be uninformed about how the industry and O/G production works.

Quote from: REParticularly when an oversupply is predicted for the next decade and most OECD countries are in recession and in debt up to their eyeballs.
RE

Oversupply being predicted is like...undersupply being predicted. It is until it isn't. And at any point in time either can be sold to the rubes.

The good news is that when folks who know stuff, like whomever built that chart from the EIA I referenced? You can just glance at that and only need to know where a companies acreage sits without needing to know much of anything except oil price. No authorship was provided, but they do answer their "Ask EIA" email address. Turns out CapX and operating costs were built into it, as well as rate of return (note on Y axis)...the part the bank would be interested in, to make sure the surplus is enough to get back their cut.