|And why not? There will be no shortage of oil. There will be more and more differentiation about the types and qualities of oil. Today heavy crudes are being impacted by the zoos inefficiencies. Refiners will need to adjust their platforms as the logical counter program against the trend away from heavy sours to other less environmentally / economically friendly types..|
XOM's work off Guyana and soon Surinam is a huge counter program. Read more about it here.
The Zoo's production drop-off have little or no impact. Both Russia and China have large debt overhangs which will make it difficult for the zoo, to regain its status as a SouthAmerican showcase.
The debt owed will be serviced by oil shipments. As volumes continue to fall on the production side, these debts will eat up larger portions of future production Even If the zoos oil patch can be saved in the next decade or so, the debt payments to Russia and China will leave little in the way of largesse for the zoos own economy,.
China and Russia have not ,despite their enormous claims against the zoos production, have done little or nothing to stem/alleviate the shortfalls in that production.