Capital Spending, What to Expect for Rest of 2016

The video discusses a survey on capital spending in the oilfield service industry, highlighting significant declines in 2016 but potential recovery in 2017. It examines the impact on the US oil industry, noting reduced spending and production. The discussion covers future expectations for oil prices and industry recovery, with a focus on global supply and demand dynamics. Inventory levels and market outlook for oil service firms are also analyzed, suggesting a potential rally as oil prices rise.

What was the percentage decline in capital spending in North America in 2016 according to the survey?

• 51%

• 31%

• 41%

• 21%

What is one of the main reasons for the bottoming out of capital expenditure in the U.S.?

• Improved cash flows

• Reduced rig counts

• Higher demand from China

• Increased oil prices

What percentage of companies surveyed expect to increase capital spending in 2017?

• 95%

• 73%

• 50%

• 27%

At what oil price per barrel do shale producers start to significantly increase production?

• $70-$75

• $80-$85

• $60-$65

• $50-$55

Which country is leading the demand growth in the global oil market?

• Canada

• United States

• India

• China