Collapsing oil prices have already triggered a sell-off in oil and gas equities - Brent has fallen 26% since June, wiping off US$630 billion from the market value of largest 60 IOCs. US$80/bbl would reduce cash flow for these companies by US$160 billion over 2015/16. Sustained prices below US$80/bbl would force the industry to cut E&P spend, dividends and buy-backs. Assets would be put up for sale, potentially triggering a buyers’ market in M&A.
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Wood Mackenzie Oil Prices company sensitivities October 2014.pdf