AI-powered
podcast player
Listen to all your favourite podcasts with AI-powered features
Capital Discipline in the Energy Sector
There was a huge boom, a huge expansion of capacity around fracking in response to an earlier spike in prices. A lot of those firms ended up really wiped out because there wasn't actually the final demand there. OPEC also launched sort of a coordinated assault on the American fracking boom. And so there's a kind of rational basis to this capital discipline if you want to think about it that way.