Posted on 04/23/2015 10:01:42 AM PDT by bananaman22
The largest oil and gas companies are employing different strategies to weather the downturn and plan for the future. Each strategy has its risks, and not all may work out. Which companies will emerge stronger after an oil price rebound and which will fall further behind because of bad decisions?
There are different ways to play a down cycle. With oil prices half of what they were in 2014, revenues are significantly lower for everyone across the board. As a result, the oil industry has collectively implemented an estimated $114 billion in spending cuts. But oil executives are also trying to figure out how to grow over the next five or ten years.
A few of them are trying to look past the period of low prices by pursuing big, long-term projects that have stable and long-term returns. That means more offshore oil and/or LNG, both of which have longer shelf-lives than shale.
(Excerpt) Read more at oilprice.com ...
My stock broker just called 5 minutes ago to recommend Chevron.
Good luck on that one !
This is a great time for the majors to buy up uneconomical production at firesale prices. If you have deep pockets like Exxon, Chevron, Shell etc. this is an opprotunity. If you do not have deep pockets you are selling your undervalued assets to Exxon, Chevron, Shell etc. because you are now broke.
Before I left the oilfield I went through two of these boom and bust cycles. That is the way it works.
Funny, our discussion at lunch was about the same.
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