I have no problem with the "investing too much in exploration" part of his argument. But avoiding overinvestment is not what unleashes the tsunami of cash he's talking about. It's asset sales that should bring on that tsunami of cash.

What is the break even of oil companies' proven reserves after not overspending on investment? That is the all important question. If that break even is below future long term oil prices, as he seems to suggest, then these assets are worth exactly $0.