It's hard to see where massive amount of new supplies can come from with $50 a barrel oil. All the tight oil, shale oil, deepwater oil, and oil sands projects require higher oil prices to make them economical. With the middle east supplies hinging on the ability of Saudi Arabia to produce higher quantities it looks like cheap oil is becoming harder and harder to find. Even the Saudis are being forced to run much higher rig counts and are looking at lower gravity more expensive crudes to increase production.
Exactly...prices crater to $50 and the Eagle Ford, Bakken, Permian Basin and the oil sands go off line. The Gulf CEO is a moron or there is something missing from quotes/questions?
Only way you get below $50 is if there is a new super giant conventional field uncorked somewhere that floods the market....guess what, ain't happening any time soon.