Benjamin starts off the video by speaking to how the industry seems to be very negative at the moment, but that there is a silver-lining to every recession, even this one. In the current industry recession, majors know how to draw the line in the sand and kill projects. Juniors on the other hand, are not able to efficiently kill projects. This has led to too many poor projects getting funding, and actually good projects not receiving proper funding, which has led them not being able to develop properly. This has led to what Benjamin calls “Pipeline Interruptus,” which is going to cause a gap in supply from 2016-2020 in certain commodities. Benjamin calls for Juniors to do one of two things: develop projects that are material to majors or develop a project that is material to themselves. Investors should buy rational majors or look for juniors that are well structured that have assets that make sense. All in all though, demand is going to far surpass supply due to not enough investment in the supply chain.
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