Thanks Okie

Okie Update

OKIE:  GOOD DAY AMERICA, SHIPS AT SEA AND ALL OUR WORLD WIDE FRIENDS AND TELEGRAM NEIGHBORS. 

I HAVE BEEN IN THE OIL PATCH 43 YEARS MOSTLY IN MINERAL ACQUISITION, CONSULTING  AND LEASING.  I HAVE BEEN ASKED TO TRY TO EXPLAIN WHAT THE CURRENT CHAOS IN THE OIL MARKET IS. 

THE OIL MARKET IS AND HAS ALWAYS BEEN DETERMINED BY THE LAW OF SUPPLY AND DEMAND.  THIS HAS ALWAYS BEEN THE DETERMINING FACTOR. 

WE NOW FIND A SITUATION COMPLETELY DIFFERENT THAN ANYTIME IN THE PAST MARKET.   BECAUSE  OF THE OVERSUPPLY OF OIL THE PRICE CRASH HAS TAKEN PLACE. 

THE CONTRIBUTING FACTOR WAS THE OIL PRICE WAR BETWEEN SAUDI ARABIA AND RUSSIA EACH TRYING TO OBTAIN  EACH OTHERS MARKETS. BY OVERPRODUCTION AS WELL AS THE REDUCED DEMAND CAUSED BY THE VIRUS THE OVERSUPPLY OCCURED. 

SAUDI HAS AN ADVANTAGE BECAUSE OF THE COST OF PRODUCTION ONLY BEING $3.00 PER BARREL WHILE RUSSIA IS SPECULATED TO BE AROUND THE $20-25 DOLLAR RANGE. 

INCIDENTIALLY THE USA 'S COST OF PRODUCTION IS IN THE $40-45 DOLLAR RANGE.  DUE TO THE LACK OF DEMAND THE OIL SUPPLY DEPOSITORIES ARE FULL AND UNABLE TO TAKE ANY MORE OIL UNLESS THE USA TAKES ADVANTAGE TO REPLENISH THE STRATEGIC OIL RESERVE WHICH WOULD BE AN OPTIMUM TIME TO DO SO; 

WE'LL SEE IF ANY OF OUR LEGISLATORS HAS ENOUGH GREY MATTER TO THINK ABOUT THAT.

THERE ARE TANKERS SITTING STATIC IN THE OCEAN FULL OF OIL AND NOWHERE TO GET RID OF IT AT. 

THE MARKET IS NOW SHOWING FOR THE FIRST TIME IN HISTORY A NEGATIVE PRICE FOR OIL—-MEANING THOSE WITH THE OIL WILL HAVE TO PAY TO THE RECEIVER RATHER THAN THE OTHER WAY AROUND. 

CUSHING, OKLAHOMA IS THE PIPELINE CROSSROADS OF AMERICA AND ALL STORAGE TANKS ARE FULL. WHILE IT WILL TAKE ECONOMIES GETTING BACK TO NORMAL AND CONSUMPTION INCREASING THE REAL POSSIBILITY IS FOR "CHEAP OIL" FOR SOMETIME NOW. 

WATCH THE FORWARD CONTRACTS ON OIL TO BE AN INDICATOR WHEN PRICES WILL RESUME TO SOME  NORMALCY.

WE'RE LUCKY —-WE HAVE PLENTY OF OIL IN THE GOOD OLE USA AND IT IS AFFORDABLE—-FOR THAT GIVE THANKS—-BLESSINGS——SHALOAM