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 - BUY IMO, page-70
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Last
$7.02 |
Change
-0.005(0.07%) |
Mkt cap ! $23.02B | |||
| Open | High | Low | Value | Volume |
| $7.00 | $7.08 | $6.98 | $19.96M | 2.840M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 18 | 27338 | $7.01 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $7.02 | 49035 | 26 |
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| Last trade - 12.00pm 01/10/2024 (20 minute delay) ? |
| STO (ASX) Chart |