Afternoon,
The Saudi's have cranked their production to the max of 12 million barrels per day! This has tanked the oil market aggressively. However, Trump indicated a deal may get done soon between various OPEC countries, including Russia's participation. If not, and oil goes lower, Trump will hopefully wake up and start playing hard ball with Saudi Arabia. We let them slide when virtually all of the culprits for 911 were Saudi citizens, killing journalists, and now torpedoing the crude market right when the world and the US became vulnerable.
Either way, sub $20 oil isn't long term sustainable for virtually anyone. There is a very good chance that inflation finally bursts onto the scene after this incredibly huge QE and deficit spending in the US bursts the system wide open. In that case, oil will fly because it's priced in dollars, as will mostly all commodities.
So, when things are uncertain and we have a dirt cheap, high upside, special situation like Shoal Point Energy (SHP/SHPNF) that we can be accumulating for peanuts, we should be doing so! If they aren't spending money on drilling new wells, it costs $20K US to run this company per month...it's nothing! They can survive for 2 years on $400k in the bank and revenues trickling in from well #1 if needed.
They also should be able to snag some incredible opportunities coming out of this. Low overhead, max flexibility, a strong plan in Kansas, and a CEO that drove one of the biggest winner in oil/gas over the past generation in Ultra Petroleum! I've added to my position today and plan to buy under .12 CDN. If/when it goes below a dime, I ramp up purchases the lower it goes.
I suggest sticking with the plan in SHP. We never know how quickly things can change (as we just saw on the downside), and the upside could kick in fast, leaving these chances to buy ultra cheap in the dust!
