Sanford Bernstein: “Investors who had egged on management teams to reign in capex and return cash will lament the underinvestment in the industry.”
Proven reserves of the oil majors have fallen by more than 30% on average since 2000, the analysts point out. Only Exxon and BP have shown an improvement, and they only because of acquisitions.
It would be interesting at this point to know how oil experts split in favouring supply pressure over peak demand.
And lurking behind all this is the spectre of new oil availability. The “peak oil debate” has not gone away – only been suppressed by unforeseen oceans of debt-drenched shale oil. Conventional oil, we would do well to remember, has already peaked in global production. It is only unconventional oil (shale and tar sands) that has kept production growth going.
Image: from article