Interesting background stuff and his contrarian view on the future of oil. http://www.bloomberg.com/news/2014-...l?hootPostID=9308ce429d8fb03ffeda9f5d3fe245d8
Indeed and you'll note Hall backs me up on my educated guess that the drop in prices is because oil is oversupplied right now. Here is what Hall had to say about that. "Saudi Arabia was correct not to cut production after last month’s meeting of the Organization of Petroleum Exporting Countries, Hall wrote to his investors on Dec. 1. The market is oversupplied, making any effort to sustain prices at $90 a barrel “a fool’s errand,” he said. Too much has been invested in boosting output in recent years, particularly in U.S. shale formations where producers have drilled wells with cheap, borrowed money, he said. Hall has frequently said the oil boom is over-hyped and won’t last as long as the industry thinks. Low prices will run weaker shale operators out of business and lead to reduced spending on more costly developments such as those in Canada’s oil sands, deep-water drilling and Arctic projects, Hall said." I would also add that the rising dollar -- it tends to rise when oil falls, but there are other reasons for the rising dollar right now as well-- compensates producers to some extent for falling prices, so they are not hurt as much as one might suppose if one did not take into account the strengthening dollar.