Fifty-nine percent of oil executives said investor pressure to maintain capital discipline is the primary reason publicly traded oil producers are restraining growth, according to a Federal Reserve Bank of Dallas survey released Wednesday.
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I'm fascinated at how the article tries to downplay the .gov interference by citing 6% "pointed to government regulations as the primary reason publicly-traded oil companies are restraining production growth", then proceeds to discuss other factors that stem from .gov interference.
ReplyDeleteFrom their perspective, why invest heavily to bail out a country that's going to turn around, villify, tax and fine, and blame you for everything as soon as the supply chain eases?
As John Polomny of Actionable Intelligence on yt notes. Why would you invest heavily in an industry that the current government has vowed to shut down. We're already stealing other countries foreign reserves on a whim why wouldn't you expect president Potato to grab oil industry cash too?
ReplyDeleteStealing? What other countries? What resources?
DeleteThis story is a bit slanted, obviously. Oil companies operate within very strong market cycles, and they are always a surprise when they manifest - both boom and bust. And the surprise is always more profoundly shocking and ugly when it happens, they're almost completely unpredictable.
ReplyDeleteAn sizeable oil/gas development project, post-discovery, will take a minimum of 5 years or so to bring into production, because of the engineering cycle followed by manufacture, installation, drilling, and so forth - and that is all capital spending with no return - until you start pumping. Often, the expenditure is in the billions.
But who can tell what the price of oil and gas will be 5 years from now? That's the problem. You can commit to a project when the prices are good, only to suffer when your wells finally start producing. The 2016 oil glut took companies by surprise, and it was a profound shock at the height of a boom, when everyone had projects on the boards and in progress. They've only started recovering from their huge debt loads in 2020 and 2021, many of the companies either stopped or cut their dividends, which is poison to many investors. It's feast or famine for this business. Feast, and everybody moans about high oil prices, and the Senators make hay demonizing them. Famine, and everybody stops complaining and instead, start praising 'just desserts' for the oil companies who can't make money. But nobody stops driving and the lights stay on, don't they.
When are all of these idiots going to admit that creepy Joe is responsible. Nemo
ReplyDeleteHow come everything Biden touches turns to shit?
ReplyDeleteThe oil companies are having a bit of a Truckers strike of their own.
ReplyDeleteThey want lefty enviro-nuts to feel the pain of expensive energy and expensive chemical feedstocks caused by their enviro-nut policies and the enviro-nut politicians they elect.
Let a bunch of them get hungry while they're freezing in the dark.
Just more proof that you can't trust the media who serve as Democrat propagandists. Stop pipe lines, don't issue permits, quit auction, freeze bank loans have nothing to do with price spirals. fjb!
ReplyDeleteThe people who control oil companies don't suffer much from the price of gas or most other necessities. They do hate the insane amount of fed regulation they have to deal with. They haven't much incentive to risk capital on exploration and drilling only to get bent over by Biden an his handlers. And of course the only people who actually suffer from this Kabuki theater of bullshit is the little guy.
ReplyDeleteI heard the Demo's are saying they have approved tons of leases to oil companies. Therefore it's the oil companies fault for not drilling. An oil company person responded saying, yup we have the leases. However, one they have no idea if they will hit or how much oil is present. Then once they determine it's worth drilling they have too go through all sorts of time consuming regulations to drill. So, the leases are there but approval to drill, held up by the government, can take years.
ReplyDeleteIF this so called news is produced by cnn, I call it BULLSHITE...because it is cnn with a adjenda made up of lies as per cnn.
ReplyDelete