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Oil spiraling lower down ten dollars and five trading sessions you can bet that has the attention my next guest he is ready without -- is the founder and CEO Laredo petroleum.
An independent energy company drilling in the Permian Basin.
I've been -- Permian Basin myself many times and oil story 75% of your production -- there I understand.
You've got to be watching.
What's going on an oil right now and be a little bit concerned more than 10% in ten days and five trading days where you -- the bottoms out.
Well thanks thanks for having me here have been -- you know is a very volatile commodity always has been we've had.
It reacts to the to the world's economy were actually United States economy.
Then on ten bucks or so -- not that unusual overall.
So those of us in the business -- kind of plan on being a little bit volatile.
We run our business appropriately.
It you know it -- Continue to degrade.
You know another five or ten dollars but ultimately it's it's a function of we need who we need deal.
Yeah absolutely and that you know we always watch the future's contracts -- WTI we're looking at oil about 95 bucks a barrel.
What's the real price to you right now -- the pressure selling at roughly we we still almost had to be -- really within a few percentage points.
And -- where do you see this price going over the next year -- so.
-- short term we know we have a little bit of a concern about the economy and maybe the whole process straighten them.
But I think over over a little longer period what we're not too worried about it being loved.
At what point does it change the decisions that you're -- about production what number and thank you.
Our our company is is.
Caged such that at about 75 votes are -- start backing up pearl press.
And that's it starts getting down toward that kind of levels and we we rethink but the radio has a tremendous amount of flexibility on where we put our.
Yet it's interesting that you say that you had your production because.
You know a lot of people like to talk about speculators in the oil markets say -- are what's driving higher -- sort of make the defense that without.
Speculators in the market producers couldn't hedge wouldn't be as comfortable that producing airlines would know where -- fuel costs are going to be.
How do you specifically had your -- and where do you do that how important is that you know.
It's very important to us it's critical to us our our exploration cycle is is measured in years from the start of an idea until we actually produce steel.
And we need to have some sort of an understanding of what our commodity price downsides going to be over that period.
So we we -- our physical product we're not speculating that we -- the physical product.
34 and sometimes may be five years.
Class you would make because that's if you weren't able to hedge them that's exactly right let me ask about natural gas as well -- you also produce a lot of natural gas.
The EIA just said that they don't think the prices gonna go below a dollar 95 for the rest of 2012 and looking at this news is that just came out.
What do you think about that will.
At the radio only about less than 15% of our revenue comes from natural gas so we're.
We're we're pretty heavily -- -- of liquids company Britain and the United States has found a tremendous amount of natural gas we have a huge supply.
And that's gonna have a long term impact on.
On natural gas prices which is and I think good for the United States.
Right should be grateful production great Africans personally for energy.
Something that we need to put to use you know we're out of time I would love to have you back -- could talk or thank you very much thanks so much coming -- we appreciate it.
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