Costs for servicing oil projects have pulled back considerably after a nice decade of price spikes, but oil servicing costs are going to rise again, necessitating higher oil prices to justify capital allocation behavior. There is no cure for low prices like low prices when the globe utilizes around 95 million barrels of oil per day. Remember when oil spiked to $147 a barrel, well we were at 89 million barrels per day in global consumption. Global oil consumption is going to outpace the growth of global oil production over the next decade which is going to lead to a really tight oil market in the future.
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