What are your contrarian views?

Metus

As per a recent comment this thread is meant to voice contrarian opinions, that is anything this community tends not to agree with. Thus I ask you to post your contrarian views and upvote anything you do not agree with based on personal beliefs. Spam and trolling still needs to be downvoted.

Price is set on the margins. The marginal barrels of oil coming out of the ground are certainly in the ballpark of $100, from various shale and tight deposits.

The oil prices do not play by the economics textbook rules because most of the world's oil production is controlled by governments and governments have a variety of interests and incentives beyond what a profit-maximizing purely economic agent might have.

1moridinamael12y

I assure you that this is not true, unless I misunderstand you. edit: The Finding and Development cost of a typical worthwhile shale play is $1.50/Mcf (many are even better), the current natural gas price is $3.50/Mcf. Of course there are crappy fields with higher F&D cost, and these won't be drilled until prices are high enough to justify it. In effect there is a continuum of price/barrel out there in the world and this is not what controls present day prices.

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What are your contrarian views?

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What are your contrarian views?

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