Are today’s spending cuts setting the global oil market up for a supply crunch in a few years? An oil supply deficit may be hard to fathom given two years of surplus and rock bottom prices, but with the financials of so many oil companies badly damaged, upstream investment could come up short in the not-too-distant future, even if prices continue to rise this year. Globally, the oil industry is set to cut investment by $1 trillion between 2015 and 2020 due to the collapse in oil prices, according to a new estimate from Wood Mackenzie. Spending on development will be $740 billion lower than the pre-crash estimate for that five-year period, and exploration spending is also expected be down by another $300 billion. Dickson says that although “virtually every oil-producing country has seen some form of capex cuts” over the past two years, the United States has been […]