Views on MCE?, page-21

"Are you suggesting that pure offshore oil/gas play is a sustainable mid/long term future for MCE?"

Yes. While most people focus on the recent oil glut, a new supply crisis is looming. Underinvestment in the current environment could cause prices to spike.

HSBC Report

"Given the backdrop of the past two years’ severe oversupply in the global oil market, it’s not surprising that few are discussing the possibility of a future supply squeeze"

"We think the market could be underestimating the scale of the supply tightening and the almost unprecedented fall in industry investment seen in the past two years is likely to have long-term implications for the supply outlook"

Wood Mackenzie Report.

"Before the oil price crash the volume of conventional liquids being discovered was on a downward trend and this, combined with lower exploration budgets, will have a significant impact on long term supply"

Deloitte Report

"Oil and gas is a depleting resource with average annual production decline rates from existing wells of approximately 7-9 percent (including shales). This mismatch, or underinvestment, points toward a looming problem of sustaining current production levels and adding new capacity"

"capex levels have gone below the minimum required levels to offset depletion, let alone meet any expected growth. The impact of these actual and projected capex cuts over three years in row will likely start reflecting in the future availability of reserves and production"