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general oil Producers hedging against downturn

JC

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Huge volume in Put Options .  Producers locking in prices at these levels.  They understand  (1) three new pipelines Permian to Gulf Mexico by Q3. (2) four upgraded or new oil export terminal on Gulf. The new Corpus Christi oil export terminal being constructed by Carlyle Group will load 2 million bbls/day. (3) there will be over 9000 Drilled But Uncompleted wells in shale, most in Permian by Q4. 

OPEC/Saudi Arabia cuts and propaganda can't stop the flow of US oil to world markets.  The likes of BP or Hess CEOs talk of "stabilizing" and "balancing" the market to assure investment will be exposed for what it is . . . .  a big con.  Hess is making 55% return on new wells in Bakken holdings at $50.00 oil price.  Saudi's breakeven is $4.00, BP paid $10.5 Billion for 400,000+ of second rate acres last Fall with only a small percentage in Permian.

SHALE GAS doesn't need a cartel.  Pre SHALE GAS U.S. was paying $12.00 to $14.00 mm/BTU. Today paying $2.80 mm/btu And New INVESTMENT BIGGER THAN EVER  !

The 50 years of OPEC extortion and price fixing is coming to end in 2020.  

OPEC can get prices up short term for the summer driving season. I wouldn't want to be long oil  toward end of year.  

The king is dead (price fixing). . . .  Long live Free Markets. ! ! ! ! 

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