I picked the following from a Bloomberg report
Mark Papa, the former EOG Resources Inc. chief executive officer who helped create the shale industry more than a decade ago, said drillers are “grievously wounded” as crashing crude prices exact their toll.
Shale explorers will be “decimated” in coming months amid a wave of restructurings and bankruptcies, fallout from the 70 percent drop in oil prices since mid-2014, Papa, who is now a partner at private-equity firm Riverstone Holdings LLC, said during a panel discussion at the IHS CERAWeek event in Houston on Tuesday. Low prices probably will linger for another 16 to 24 months before supply cuts cause a rebound, he said.
“From those ashes, you will see the companies that survive, a lot of them will be grievously wounded financially, and the management teams that come out of it will be a lot more conservative going forward,” Papa said.
This is interesting to note, now that oil prices are hovering in USD30-35/barrel it must have severely affected those companies invested in shale oil & gas exploration and extraction.
How will this affect Petronas’ venture in Canada?
The Canadian government may cave down to the demands of special interest groups opposing the proposal from Pacific NorthWest, but from a cost-cutting perspective, this may not be such a bad thing after all for Petronas.
However, despite the project being almost exclusively reported to be linked to Petronas, this project actually involves other shareholders with national interests: namely Indian Oil Corp., Japan Petroleum Exploration Co., China Petroleum & Chemical Corp. and Brunei National Petroleum Co..
They may not be as sanguine as to walk away as all have ready customers and are quite willing to wait it out with the Canadian government considering their ventures are closely linked to their respective national interests.
And I doubt that Canada, more specifically British Columbia, would actually want to walk away from what potentially will be a massive boost to their GDP and the corresponding socio-economic benefits that the project brings to the province.