Oil Industry Facing a Severe Test: Sanford C. Bernstein’s Beveridge

The video discusses the impact of government support on oil pricing in China, highlighting the challenges faced by the oil industry due to low prices. It explores the need for CapEx cuts to achieve sustainable cash flow and examines the potential for demand recovery as China resumes operations. The video also analyzes the price sensitivity of CNOOC and the defensive nature of Sinopec, providing insights into stock choices for exposure to crude prices.

What is the break-even price range for onshore oil producers in China?

• $70-$80 per barrel

• $20-$30 per barrel

• $90-$100 per barrel

• $50-$60 per barrel

What percentage of CapEx cuts is suggested to achieve sustainable free cash flow levels?

• 40-50%

• 30-40%

• 10-20%

• 20-30%

How much did refinery runs in China decline during February?

• 10-20%

• 30-40%

• 20-30%

• 40-50%

Which company is identified as the most price sensitive among China's oil majors?

• PetroChina

• Sinopec

• CNOOC

• China National Petroleum Corporation

What is the primary advantage of Sinopec in the context of lower oil prices?

• Expansion into new markets

• Higher crude oil prices

• Lower feedstock costs for petrochemical production

• Increased upstream production