Tuesday, October 08, 2013

Light sweet saturation and a malinvestment *alert* | FT Alphaville

FT Alphaville: The origin of the US oil 'glut'.

"In other words, oil prices were simply not high enough to justify energy investment during that period. The industry had to squeeze itself to make the investment case compelling enough to attract all that surplus capital. It was only when oil prices soared to 2008 record levels, that enough of the risk was removed to once again attract capital to the sector."

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