BP Finds Deepwater Gulf Oil as Prices Slow Drilling

The video discusses a joint project by BP and Chevron, highlighting the impact of oil prices on large investments and the global market. It examines the historical context of oil prices, the economic pressures on countries like Russia, and the profitability of shale oil drilling. Analysts provide insights into market trends and potential future developments.

What is a key characteristic of the mega projects pursued by oil majors like BP and Chevron?

• They are primarily onshore projects.

• They need high oil prices to be profitable.

• They are short-term projects.

• They require minimal investment.

Why is an oil price of $80 considered significant in the historical context?

• It is the price at which all oil projects are profitable.

• It is the highest price ever recorded.

• It is the lowest price ever recorded.

• It is higher than the average price of the last four years.

What oil price does Russia need to avoid financial pressure?

• $100 per barrel

• $90 per barrel

• $80 per barrel

• $70 per barrel

What happens to shale drilling when oil prices fall to the low 70s?

• Growth in shale drilling turns negative.

• Growth in shale drilling accelerates.

• Growth in shale drilling remains stable.

• Shale drilling becomes more profitable.

How does a decrease in oil prices affect the cash flow for shale drillers?

• Cash flow decreases, affecting lending.

• Cash flow remains unchanged.

• Cash flow increases significantly.

• Cash flow becomes irrelevant.