Dana, production growth a certainty

The simple facts, Dana's production and revenues will not resemble past performance, nor will its share price.

Yesterday Venezuela descended further into chaos, next week could see the crisis deepen further, the discontent within is gathering momentum and set to continue for weeks if not months, as the main weapon the people have is to deprive their government of its oil revenues which represent 80% of the county's income.



When the US/UK invades Iraq they will go in hard with an unprecedented onslaught, the purpose to win convincingly and quickly, sending out important signals to other countries. Saddam knows he can offer little resistance and is likely to disrupt his own (and possibly others) oil supply, he will remain unpredictable to the end. Post war, terrorist might target oil supplies as a means of hitting the oil dependant countries they hate most.

In view of the current uncertainties oil will surely spike to $40-$45 which the World could probably cope with in the short term (Spring, Summer), however anything higher or longer would have other World economy implications?

Whatever the scenarios it is hard to see an outcome that will push oil below $25, as by the time things MIGHT settle down we will be heading back into Winter?

As I previously mentioned, next week could see a renewed interest/focus in the oil sector and Dana will also be a beneficiary of that interest, bearing in mind that the share price is STILL out of alignment with production and revenues.

All in my opinion only, please do your own research, I hold shares in Dana.

Best regards wan ;-)