Posted on 04/22/2015 8:17:45 AM PDT by thackney
Low crude prices will trigger consolidation in the oil industry but a new bull market might arrive much sooner than expected given the huge scale of capital and workforce withdrawal in the sector, a former boss of oil major BP said.
"The actions the industry is taking to withdraw capital are laying the seeds for the next bull market," Tony Hayward told the FT Commodities Summit.
"The peak of U.S. shale supply has arrived – earlier than anticipated ... The supply chain in the U.S. has been decimated ... It will take several years to take activity back," Hayward said.
He compared current developments to the situation at the end of the 1990s when oil companies slashed investments, which ultimately sparked an oil price rally to record highs in 2003-2007.
Hayward now serves as chairman of commodities giant Glencore and chief executive of mid-sized oil producer Genel , which is active in Iraqi Kurdistan.
(Excerpt) Read more at rigzone.com ...
On any given day, we can find articles explain why oil is going to go up and also go down by someone else.
Looks to me that the big oil companies are using propaganda to boost prices and stem the bleeding of cash.
There’s oil under them thar grounds, and there is lots of it.
All they think they need to do is get the prices right.
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