{"id":9205,"date":"2015-06-18T05:44:33","date_gmt":"2015-06-18T10:44:33","guid":{"rendered":"http:\/\/olduvai.ca\/?p=9205"},"modified":"2015-06-18T05:44:33","modified_gmt":"2015-06-18T10:44:33","slug":"how-big-oil-was-saved-from-the-oil-price-crash","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=9205","title":{"rendered":"How Big Oil Was Saved From The Oil Price Crash"},"content":{"rendered":"<h3><a href=\"http:\/\/oilprice.com\/Energy\/Crude-Oil\/How-Big-Oil-Was-Saved-From-The-Oil-Price-Crash.html\" target=\"_blank\">How Big Oil Was Saved From The Oil Price Crash<\/a><\/h3>\n<p>Low oil prices have been less of a drag on the big integrated oil companies than it has for smaller producers. Diversified portfolios have allowed the largest oil companies to weather the storm better than their smaller competitors.<\/p>\n<p>To be sure, Big Oil has not gotten off lightly. In fact, some of the largest megaprojects that are only undertaken by the oil majors appear to be huge financial burdens. Having spent billions of dollars on extraordinarily large and complex projects \u2013 ultra-deep water, LNG, large oil sands projects \u2013 the costs are a colossal weight around the necks of the oil majors. The oil industry has scrapped an\u00a0<a href=\"http:\/\/www.rigzone.com\/news\/oil_gas\/a\/139153\/Low_Oil_Price_Hits_200_Billion_In_MegaProjects\">estimated $200 billion<\/a>\u00a0in future offshore and LNG projects as the industry backs away from the massive costs.<\/p>\n<p>Smaller onshore shale projects that have shorter lead times look attractive by comparison, despite shorter lifespans and relatively high breakeven costs. Wells can be drilled for a few million dollars over the course of a few months, rather than the billions needed for the megaprojects that can take a decade to develop.<\/p>\n<p><a href=\"http:\/\/oilprice.com\/Alternative-Energy\/Nuclear-Power\/The-Front-Runners-In-Fusion-Energy.html\"><strong>Related:\u00a0The Front-Runners In Fusion Energy<\/strong><\/a><\/p>\n<p>At a time in which OPEC is fighting for market share, which could lead to oil prices remaining low for an extended period of time, smaller has its advantages. \u201cThe major oil companies are being squeezed,\u201d CEO of Italian oil giant Eni, Claudio Descalzi,\u00a0<a href=\"http:\/\/www.bloomberg.com\/news\/articles\/2015-06-03\/opec-s-shale-war-leaves-big-oil-companies-as-unexpected-casualty\">said in Vienna<\/a>\u00a0in early June. \u201cWe need to slow down and look for easier projects away from the complexity of the last 10 years.\u201d<\/p>\n<p>Nevertheless, it pays to be big and diversified. Complex megaprojects may be weighing on the balance sheets of the oil majors, but their extensive downstream assets are paying off.<\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>How Big Oil Was Saved From The Oil Price Crash Low oil prices have been less of a drag on the big integrated oil companies than it has for smaller producers. Diversified portfolios have allowed the largest oil companies to weather the storm better than their smaller competitors. To be sure, Big Oil has not [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2,3],"tags":[2688,505,6010,1775,5332,600],"class_list":["post-9205","post","type-post","status-publish","format-standard","hentry","category-economics","category-energy-2","tag-big-oil","tag-market-share","tag-nick-cunningham","tag-oil-price-collapse","tag-oilprice-com","tag-opec"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/9205","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=9205"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/9205\/revisions"}],"predecessor-version":[{"id":9206,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/9205\/revisions\/9206"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=9205"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=9205"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=9205"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}