Posted on 11/25/2015 9:27:01 AM PST by bananaman22
What do you do when all of the low hanging fruit is gone? That question is one that oil producers are increasingly facing as they confront an oil price slump that is now more than a year old and shows no serious signs of abating. With oil prices having fallen by nearly half over the last sixteen months, it is little wonder that oil companies found their balance sheets under pressure. From Exxon to Continental all oil companies have faced problems in maintaining their capital spending and more importantly, their profitability. In light of that, it is little wonder that oil companies pulled every lever they could to survive.
The vast majority of oil companies have seen their profits fall markedly in the last year, and most companies have turned to the same three tools in order to cope with falling prices.
(Excerpt) Read more at oilprice.com ...
Shouldn’t that be “losses” in the headline ?
There’s no way they can adapt to lower prices huh? We went for decades with oil prices staying fairly steady- then all of a sudden they skyrocket- oil companies take advantage- which they should have- then they drop back to where they were (a little higher actually) just 7 years ago, and now these companies can’t readjust back to the practices they did when prices were low for all those years? How did they ever survive when the prices were even lower just 7 years ago?
Like they haven’t since August of 2014?
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