Replies to post #14186 on The Rising Influence of Rising Affluence

[OakesCS]

i read that as an observation of current practice rather than an assumption that big oil would not eventually return to mega-projects.

I think the return to 'mega-projects' is inevitable but the specific cases mentioned in the article make zero sense to pursue at the moment and probably for at least another 2 yrs. If i were running a large E&P i'd be looking to buy known assets in much less physically challenging areas and they can be had for pennies on the dollar now.

Regarding Shell's Chukchi Sea adventure: that project was rife with mismanagement as well as being assaulted by regulatory agencies. So I wouldnt say that big companies have a competitive advantage just because the company is big and the project requires substantial capital. It can just be a big opportunity to lose a lot of money. Plenty of E&P and service companies have adopted that plan.

This may be Trumpian naivete but given the dislocation in the industry now, I suspect that big oil is not capable of pulling off mega-projects now even if the price were to go back to $70 tomorrow. Little projects will be the training wheels for a lot of people.

[semi_infinite]

Yes, awful. I can't remember the last time WSJ did a quality in depth analysis of industry trends. I calendared a reminder not to renew when the time is up.

[DewDiligence]

WSJ piece on Big Oil has a strange quote from a VP at Woods Mackenzie:

https://www.wsj.com/articles/oil-companies-take-to-thrifty-bets-1488974401

“They want to be in a position to future proof themselves against peak oil demand when it comes.”

Huh?