Much of this decline in cash flows is already priced in the stocks. Capital spending appears to be the victim of the lower prices, not the dividends. With the majors there is plenty of cash to cover them for quite a while.
An awful lot has been made of 'geopolitical events' limiting oil flows. Has anyone really calculated how much oil has NOT come to market because of 'geopolitical events'? IMO this is more fear than reality.
I am in agreement that supply cuts now will bring higher prices later. Perhaps sooner than many think. Markets anticipate quite well and the discounting can begin long before the fundamentals are obvious. Supply cuts by producers are REAL unlike imagined or feared forced cuts caused by 'geopolitical events'.
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I am in agreement that supply cuts now will bring higher prices later. Perhaps sooner than many think. Markets anticipate quite well and the discounting can begin long before the fundamentals are obvious. Supply cuts by producers are REAL unlike imagined or feared forced cuts caused by 'geopolitical events'.