Reported in Oil & Gas People, on 1st February 2018, a survey of more than 800 executives found 63% confident of growth in 2018 compared with only 32% last year. According to the report:
‘A new optimism is now emerging, driven from a common understanding that cost levels are under control and operators can make reasonable margins from an oil price that is expected to stay lower for much longer.’
I presume they meant ‘higher’ not ‘lower’ and by ‘reasonable margins’, they meant ‘healthy margins’ with crude selling at $70pb and costing only $12-15pb to extract. Given the many reports of increased and stable prices along with major discoveries already reported here, I’m surprised the number expressing confidence was not higher. See these:
I suppose industry chiefs are not going to want to appear too bullish in case we start thinking we should be taxing them more.
You can read more from John Robertson at https://thoughtcontrolscotland.com/