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20:48
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Originally posted by tgn01
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Striebs. I fully appreciate your point on the definition of swing producer. Maybe fill up the gap producer is a closer definition. While deep sea and offshore fields discovery and exploration are getting harder to come by and costly. So shale asset will be easier to scale up and down depending on market price although it will take longer than a few days as you quoted as a typical swing producer. And shale asset is an easier option to replace their diminishing reserves while they try to find the next North Sea. Also geopolitical and market location is a significant factor for the value and strategic asset. Oil majors like US shale for these reasons-oil is important for US economy and politics. And so while shale is not the bona fide swing producer they can quickly set up to fill the gap in production when market conditions demand it.
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Regarding my previous point that shale asset is more attractive as a way to replenish big oil reserves is supported by this FT articles.https://www.ft.com/content/441d0184-f13f-11e6-8758-6876151821a6
