As I understand it, developing a new field takes several years at least. While mostly true, much of the current US oil investment is filling out the existing field and testing the limits of the edges. Not as much additional infrastructure requirements for that.
Is there anybody out there who seriously believes oil prices will stay below much below $100 for long?
It is a bigger question for the tight oil plays that have very high flow rates early on, but quickly drop. If you enough of your total production before the prices climb up, you many never even break even on some wells.
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Thanks. I guess I should just stay out of criticizing the market decisions of experts. :)
Just seemed odd to me that this week’s price seems to be taken so seriously, as if it’s likely to last at this level for years.
Maybe it will, maybe it won’t. But I can’t see how this week’s price is any more indicative of the price for the third week of November in 2016 than the price in the third week of November in 2013 or for that matter 2008.