Task: The estimate of growth in US GDP over the past quarter has been revised upwards to 8.2%.
Q1. How would this news affect capital investment and budgeting decisions in the petroleum industry? Give some examples and explain. Comment briefly on the past decisions made in the industry, leading up to the current situation.
Q2. Would the growth in petroleum firms' capital expenditure tend to coincide with the growth in GDP? Why or why not?
Q3. How will the recent economic growth affect the sources and cost of external capital (comment on the IPO and bond markets), and how will this in turn affect decisions mad by firms.