Conventional wisdom would lead one to conclude that cheaper oil prices discourage drilling more wells, but this is not exactly the case. Yes, some rigs have been taken out of production, but not enough to stem the growing supply of oil being produced. Bloomberg’s Tom Randall explains some of the finer nuances of energy’s exploration and production industry and provides some excellent graphics to facilitate better understanding.
A Few Reasons Why Cheap Oil Doesn’t Discourage Drilling
If oil rigs lead to new wells, fewer rigs should lead to less oil, right? Not necessarily. Here's a video in which Bloomberg's Tom Randall explains.
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