After a year of low oil prices, only 0.1 percent of global production has been curtailed because it’s unprofitable, according to a report from consultants Wood Mackenzie Ltd. that highlights the industry’s resilience.
The analysis, published ahead of an annual oil-industry gathering in London next week, suggests that oil prices will need to drop even more – or stay low for a lot longer – to meaningfully reduce global production.
This post was published at David Stockmans Contra Corner on February 5, 2016.
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