Tuesday 18 October 2016

OPEC Reversal Is Gift to Oil Majors After 2 Years of ‘Hell’ - Bloomberg

OPEC Reversal Is Gift to Oil Majors After 2 Years of ‘Hell’ - Bloomberg:

"When the bosses of the world’s biggest oil companies gather in London on Tuesday, they might have the urge to track down the Saudi energy minister and shake him by the hand.
After two years pursuing a Saudi-led strategy to pump without limits, pummeling industry earnings, OPEC has unexpectedly come to the aid of the oil majors. Last month, it surprised the market by deciding to cut production and put a floor under volatile crude prices.
The question now is how soon they will resume drilling. Prices are near levels where many majors have said they can start investing again after billions of dollars of spending cuts and thousands of job losses sent discoveries to the lowest level in 70 years. In U.S. shale fields, explorers are already adding rigs, boosting oilfield work to the highest since February."



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