Monday, September 28, 2015

Why Shell and not Eni?

Shell just announced that it is ceasing its exploration for oil and gas in offshore Alaska. However, Eni plans to "bring online its 100,000 barrels a day Goliat project in the Barents Sea, that field was discovered more than a decade ago and had billions of dollars spent on bringing it to production before oil prices plunged."

Is Eni committing a Sunk Cost Fallacy?

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