Quote:
Originally Posted by Frequitude
Replying to blueski's post regarding Suncor in the layoffs thread since it makes more sense here.
This doesn't make any sense. What do "better days" (I'm assuming you mean better oil prices so higher revenues) and "higher capex" (I'm assuming you mean growth capex) have to do with cash costs on sustaining assets? It's not like they have been or are slashing sustaining capital. I just don't follow what you are trying to say here.
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Perhaps he is referring to the inevitable snap back in service prices from contractors/drilling companies/suppliers that will occur once the price of oil recovers.
E&P companies grind the services industry into a pulp when in a down cycle and have to pay the piper as a result when things improve.