While we have no
idea where oil
prices will settle in the short run, it remains our view that oil
prices can not stay down at today's
depressed prices for too long, largely due to what we believe to be the relatively modest current level
of excess capacity, our expectations
of continued growth in demand over time, and the high marginal costs for finding and developing new sources
of supply.
Alternatively, even if the
idea of a cash dividend didn't occur to anybody in that world, investors would realize the stock
price is
depressed and could propose and vote for the board to institute share buybacks.