Stay in business capex depends on the price of oil. The cost to drill has dropped 42% from the peak in 2014, this is most of the "miracle" of "efficiency" and is having devastating consequences on an industry in depresssion.
Just have a look at MRM on ASX or RIG in the U.S.
I expect rising drilling costs will partially offset the benefits of oil price increases with a lag.
It's an insane way to run an essential industry, really need storage and stability as old Ben said.
If you think that the price of oil is $60 forever then not just STO the entire industry is going out of business. Doesn't need to invest for stay in business capex then.
That's not going to happen.
STO Price at posting:
$3.64 Sentiment: Buy Disclosure: Held
