Exxon Anticipates Shale Shakeout | Russell T. Rudy Energy LLC
Exxon CEO, Rex Tillerson, stated in an interview with CNBC that a “sorting out” of shale operators will be the result of recent crude price declines. However, he said that Exxon is a big investor in shale in the U. S. and is increasing its exposure. He feels confident in the future of shale and indicated that Exxon tests the economic viability of projects on prices ranging from $40 -120 per barrel before committing financially.
Tillerson feels that the recent crude price drop was inevitable, given that recent supply has grown by 1.6 million barrels per day (bpd) and demand has only grown by 1 million bpd. “You’ll fill storage up, fill inventories up, and at some point it’s got to show up in prices” he said.
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