The oil majors aren’t increasing their drilling budgets. Instead they’re benefiting from money invested before the rout. Lower costs combined with higher output would allow companies including Exxon Mobil Corp. and Royal Dutch Shell Plc to maximize their gains from improved oil prices. Should crude remain above US$50 ($71.8) a barrel, 2017 could be a break-out year, eliminating the need to borrow to pay dividends, according to analysts at Sanford C. Bernstein.

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