Good post by Marcantilan
But the rest of us should be careful about saying the oil price will "never" recover - it has done so many times. It takes about 3-5 years for the projects approved and started at $ 120 a barrel to finally be completed. After that the oil companies start again, and their supply chain readjusts to $ 50 a barrel - less gold plating, less specialisation, wage cuts and job cuts (the UK oil business has lost tens of thousands of jobs in the last 2 years).
Governments adjust the fiscal terms to keep jobs, financiers see "bargains", and the oil fields still pump away 24/7 generating cash flow
Happened in 1986-88, 1999-2001 etc etc
Last edited by Heathrow Harry; 27th Dec 2016 at 08:50.