RE:WolfJD, 100% correct. Operational efficiency has improved dramatically on a cost per boe...I am taking that as my upside (being conservative) not knowing where inflation will take us...but yes the cost per boe has dropped dramatically.
From this perspective the downturn helped Canadian Oil and Gas significantly...downturns force you to look at LEAN operations...I have not quantified the impact but will look at Q3, Q4 and Q1 as a good guage.
My expectation is this adds double digit financial impact to the bottom line but I would like to see the flow through on differentials.
JohnnyDoe wrote: Something your comparative analysis between 2014 and today doesn't consider is cost structure... Or did I miss that?
Oil companies reacted to the 2014 meltdown by driving their cost profile lower. They did the same thing when covid hit. I suspect most companies today are generating more fcf per barrel at 80 buck oil today than they were generating in 2014 at 100 buck oil.