It’s a bit more complicated though as oil prices will rise if firms don’t take on projects. This in turn would cause those marginal projects to look a lot bette

It’s a bit more complicated though as oil prices will rise if firms don’t take on projects. This in turn would cause those marginal projects to look a lot better down the road and oil prices for consumers will be a lot higher (which might be a good thing if it lowers fuel usage). I think this might be happening right now. There isn’t a lot of reserve replacement going on as everyone is focused on cash flow and the capital markets for energy remain closed due to ESG concerns from investors. If so, the prices will rise eventually and new projects will start.