Big Oil Is Planning to Produce at $50 Forever

Big Oil Is Planning to Produce at $50 Forever

Last week, Shell (NYSE: RDS-A) (NYSE: RDS-B) and BP (NYSE: BP) made headlines by announcing that they plan to produce oil at $50 a barrel forever, and many of the other big players are planning to produce more cheaply from now on.

In this segment from Industry Focus: Energy, Motley Fool analysts Sean O'Reilly and Taylor Muckerman explain why and how these big oil players are cutting their production costs down, how this will affect smaller oil producers, and what this means for the oil markets going forward.

A full transcript follows the video.

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Source: Fool.com