stockanalyst1 - sorry, you have lost me again. Why is using...

stockanalyst1 - sorry, you have lost me again. Why is using contractors to carry out capital work equivalent to using a pick and shovel? Very few other operators buy their own drilling rigs and workover rigs (I can only think of one) . It is normal to contract these services out, especially if you don't have enough work to keep them busy all the time. The vast majority of oil companies from juniors to majors and national oil companies are not vertically integrated when it comes to upstream services. I personally have been involved in drilling many wells and we have always used contractors.

The JV which AUT are part of, and are now citing as an example of how to maximise shareholder return is not vertically integrated either.

Short