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STO Shows Why Oil Isn't at $70

By Jim Cramer

 About this article:
 StatoilHydro's pretty typical of why oil isn't at $70 or wherever the heck the bears think it should be by now. That's because when you look through the company's numbers this morning, you are in shock that production fell for the year. Oh, there are all sorts of excuses for why -- lateness in drilling, some sort of ramp that didn't occur. But when oil is above $80, if you have spare supply you are going to get it to the market. That's the story of this moment, supply. The North Sea fields, a mainstay for so long, are running dry with only the hardest-to-get (think Transocean) oil still attainable to boost production. The oil bears almost immediately say, "But all that matters is drilling more in areas that aren't nearly as tapped, like Saudi Arabia." I just disagree. Anyone who has spare capacity should be bringing it to...

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