Reduced capex delivers strong profits and will reduce future oil and gas supply
After years of pain the upsream industry has adapted to lower prices. With a tight focus on reducing capital spending and operating costs, and the realisation that cash is more important than barrels in the ground, strong profits are being delivered.
This article in the FT (here) gives a good summary. In the medium term the significant reduction in capital spending will reduce supply and thereby provide fundamental support for higher prices.