The Guardian quotes Chairman of the Atlantic Council’s Energy Advisory Group and Adrienne Arsht Latin America Center Nonresident Senior Fellow David L. Goldwyn on how oil companies need to invest in longer-term growth strategies if they want to remain competitive in a falling oil-price market:
Oil companies are used to boom-and-bust cycles, but no one expected prices this low, for this long. Now firms need to make hard decisions that go beyond becoming more efficient and operating their most productive wells, said David Goldwyn, president of Goldwyn Global Strategies and former special envoy for international energy affairs at the US Department of State. One-off moves like issuing debt or selling assets are short-term measures, he said.
The oil industry is resilient, but moves taken in 2015 are “sustainable in a world [with prices] north of $50. That’s not going to be sustainable for a long time in a world that’s south of $40,” he said.