The extent of present meltdown in E&P shares, which was triggered by commodity price weakness, has raised anew serious concerns not only about the way independents are evaluated but also about their future role in the upstream energy sector (the implication being that too few companies have added any real value). The record does indeed indicate that a certain amount of value has been destroyed in recent years, in large part owing to too much capital formation at the peak of the commodity price cycle. However, a critical review of the evidence also shows that no segment is better equipped, or more profitable, than the independents when it comes to fulfilling domestic energy needs, particularly gas.
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