More from the Goldman report yesterday, and an important perspective for Alaska government, which from a revenue and spending perspective is essentially an oil company of its own. So what does the oil industry have to do? Goldman Sachs calls for two key changes in the industry to make these developments profitable and avoid cancellation of the projects: cost-cutting and consolidation. ... Cost-cutting: They estimated that costs across the industry need to be slashed by 20%-30%. For the world’s largest oil companies, referred to as big Big Oil, this calls for a 30% cut to capital expenditures .... Consolidation: With oil prices around $70, some unprofitable projects will have to be scrapped in a bigger mix-and-match exercise, according to the report. ow.ly/Hfs4q
Posted on: Tue, 13 Jan 2015 21:10:07 +0000
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