Big Oil hits the brakes on shale spending
With oil prices in free fall, the fear is that hunting for new shale in the U.S. may just not be that profitable.
ConocoPhillips (COP) became the first major U.S. oil company on Monday to reveal that it is slashing spending for 2015. There are expectations that more energy companies will follow.
Oil prices have dropped 40% since June. And OPEC’s bombshell decision in November not to scale back on production has sent prices even lower. It was also widely seen as an attempt by the oil cartel to choke off the U.S. shale boom.
Other oil companies to follow: Good, the Morningstar analyst, expects Chevron (CVX), ExxonMobil (XOM) and other major U.S. oil producers to announce “some marginal spending cuts” in the coming months, though not as deep as Conoco.
http://www.hellenicshippingnews.com/big-oil-hits-the-brakes-on-shale-spending/
I also expect the same thing is happening for alternative energy projects. Solar can't compete against cheap oil any better than shale oil can.
= new reply since forum marked as read
There's a big difference between $100/barrel and $65/barrel.
http://www.businessinsider.com/shale-basin-breakeven-prices-2014-10
