"Meanwhile, offshore oil which suffered from slashed investments during the downturn is now coming back with projects that have improved economics, in some cases challenging those of U.S. shale. Thats due to the costs that major oil companies slashed after 2014, to simpler designs, and to the supermajors reshaping portfolios and projects to make as much money at $60 Brent as they were making at $100 Brent four years ago."
If that is so then it doesn't take much imagination to foresee effect of the Saudi cuts mentioned in my previous post on the oil industry, especially TLW which is OK at $50 Brent.
The Saudis look to be chasing a higher oil price pre the Aramco float. If the market predictions pan out it may not persuade the potential Aramco investors to pay a higher price in view of the longer term predictions here:
Haven't gone away, just bored with crude oil and the way it's price is being kept down. The market is starting to ignore the rig count with their big increases , remember we were told that wells can be drilled in half the time with new technology ...At least all the hype of electric vehicles has pulled back to a more realistic time frame. It will happen as oil shoots up..............Elon Musk flamethrower was a strange one........but you have to give him credit for Spacex Falcon launch..... Tesla still in big trouble.
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