GREY:LSTMF - Post by User
Post by
kmappon Jan 03, 2016 1:05pm
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Post# 24425860
Big oil to cut investment again in 2016
Big oil to cut investment again in 2016 International oil companies are once again being forced to cut spending, sell assets, shed jobs and delay projects as the oil slump shows no sign of recovery.
U.S. producers Chevron (CVX.N) and ConocoPhillips (COP.N) have published plans to slash their 2016 budgets by a quarter. Royal Dutch Shell (RDSa.L) has also announced a further $5 billion in spending cuts if its planned takeover of BG Group (BG.L) goes ahead.
Global oil and gas investments are expected to fall to their lowest in six years in 2016 to $522 billion, following a 22 percent fall to $595 billion in 2015, according to the Oslo-based consultancy Rystad Energy.
"This will be the first time since the 1986 oil price downturn that we see two consecutive years of a decline in investments,"
Full article at:
https://ca.finance.yahoo.com/news/big-oil-cut-investment-again-112407671.html
As I have commented in past these continued cutbacks can only have one effect in the future, less projects available to come on-line to replace the worlds natural decline in well production and continued demand growth which needs to be replaced with new projects. If the future projects never come on-line for many years due to all these cutbacks we can only see one result, higher prices eventually. When this occurs is anyone's guess, most likely long after many companies like LTS meet their demise only contributing to even less oil available. Only an opinion, kmapp.