Reported in Oil & Gas People, on 1st February 2018, a survey of more than 800 executives found 63% confident of growth in 2018 compared with only 32% last year. According to the report:
‘A new optimism is now emerging, driven from a common understanding that cost levels are under control and operators can make reasonable margins from an oil price that is expected to stay lower for much longer.’
I presume they meant ‘higher’ not ‘lower’ and by ‘reasonable margins’, they meant ‘healthy margins’ with crude selling at $70pb and costing only $12-15pb to extract. Given the many reports of increased and stable prices along with major discoveries already reported here, I’m surprised the number expressing confidence was not higher. See these:
I suppose industry chiefs are not going to want to appear too bullish in case we start thinking we should be taxing them more.