“At our conference, producers largely did not provide specifics on what capex/ production would look like at $35/bbl of oil. Instead, producers spoke largely of their agility to spend within cash flow and … ramp up when needed. Commentary suggested $50 per barrel WTI is now where producers would raise activity.”
Goldman Sachs, in a note to investors
Q: “Can you imagine selling shares in Saudi Aramco?
A: “This is something that is being reviewed, and we believe a decision will be made over the next few months. Personally, I’m enthusiastic about this step. I believe it is in the interest of the Saudi market, and it is in the interest of Aramco, and it is for the interest of more transparency, and to counter corruption, if any, that may be circling around Aramco.”
Interview with Saudi Arabia’s deputy crown prince Muhammad bin Salman in The Economist
“By our calculations it will require additional debt formation of $39 trillion over the next decade to keep petroleum production operating. Where that funding will originate from, when it is very unlikely to ever be repaid, will be of tantamount importance. It will take very strong-willed societies to make such sacrifices. If those sacrifices are not made, the integrated global production system will have disappeared by 2026. 2016 will be witness to the beginning of this event with dramatically increasing closures and bankruptcies throughout the world’s petroleum industry.”
The Hill’s Group — “an association of consulting petroleum engineers and professional project managers”
“Around $200 billion of investments in energy have been canceled this year, with energy companies planning to cut another 3 to 8 percent from their investments next year. This is the first time since the mid-1980s that the oil and gas industry will have cut investment in two consecutive years.”
Prince Abdulaziz bin Salman al Saud, Saudi Arabia’s vice minister of petroleum and mineral resources
If the ban on US oil exports is lifted…] “The net effect of export of American oil on the market is zero. This will have no effect on the price because the U.S. still is an importing country. They export some, but they need to import the same quantity from somewhere else.”
Abdalla El-Badri, Secretary-General of OPEC
“The long-term price of oil is literally unforecastable. The only thing that can be said with absolute certainty is that oil prices will continue to defy the expectations of experts.”
John Kemp, Reuters
“Nothing is economic at today’s prices… We’re drilling the best of the best rock right now. At some point we’ll have to move to lesser-quality rock, which will increase the break-even costs.”
James West, analyst at Evercore ISI
“Credit rating agency Fitch says defaults for oil and gas companies are already at the highest since 1999. Since the start of the third quarter, at least 12 oil and gas companies have defaulted on their debt. The ‘zombies’ bet that by shifting into survival mode they can hang on until oil prices recover, but the outlook is grim.”
Anna Driver and Tracy Rucinski, Reuters, “Zombies Appear in U.S. Oil Fields”
“It’s very clear that the production of oil and gas has carried [Texas] through this boomlet. Once the golden goose leaves, there’s nothing left but them regular gooses.”
Texas state Representative Garnet Coleman
“We’ll demonstrate that we are serious about climate change. This means making decisions based on science; it means reducing carbon emissions, including through carbon pricing towards a climate resilient economy.”
Justin Trudeau, new prime minister of Canada
