E&P capex-II: If $ 1 trillion of investments has been taken out, why are oil prices lower next year and onwards?
Sep 07:
The whole lack of capex story eventually rolls on to impact the price of crude 8So, as Wood Mackenzie claims $1 trillion in capex from 2015 to 2020 has been taken out of the system, surely crude prices must go up 8Additional barrels of oil will come out of non-producing assets with a higher breakeven point 8But then why is the crude price slated to be lower next year than this year? 8What explain this contradiction? Click on Reports for more