Traditionally, higher prices tend to be followed by increased investment: management tend to be very reactive in their planning. Given that many companies have cut back budgets by over a third in the past two years, management are likely to find it hard to resist the urge to make up for lost time and pour more money into the ground.
Continue reading: Guest post: Big oil should exercise capital discipline as prices riseGuest post: Big oil should exercise capital discipline as prices rise
Traditionally, higher prices tend to be followed by increased investment: management tend to be very reactive in their planning. Given that many companies have cut back budgets by over a third in the past two years, management are likely to find it har…