Replies to post #9840 on The Rising Influence of Rising Affluence

[semi_infinite]

Not a surprise at all. It is cheaper to buy production on the stock exchange so why not. As for getting out of refining, I think it was the right decision at the time and will be for the long term. All you have to do is look at a map of Ghawar. If memory serves, it took less than 100 wells in the old days to produce the majority of Aramco output. The current well map looks like tapioca pudding. And whatever happen to the new Ghawar named Kashagan. The majors will have to be very careful about how they spend their money and where they want to make it. The next up cycle could be the last good one.

[DewDiligence]

COP exiting deepwater business:

http://finance.yahoo.com/news/conocophillips-posts-quarterly-loss-crude-111247649.html

On a conference call with analysts, executives said Conoco planned to exit all deepwater exploration by 2017 as other projects win out in the budgeting process. Currently, it has deepwater operations in the Gulf of Mexico and offshore Senegal, Angola and Canada. Conoco would also consider selling the deepwater prospects it is appraising…

…Conoco said it would further cut its 2015 capital budget, to $10.2 billion from $11.0 billion.

This is the second cut to 2015 cap-ex; the original plan called for $16B (#msg-111833052).