ExxonMobil's $60 billion acquisition was actually the second-most important number in the oil market: the US just hit record production of 13.2 million barrels.
Domestic oil production hit an all-time high last week, marking a full recovery from the Covid pandemic after drilling had dropped more than 25% between pre-Covid peaks and a bottom in early 2021.
The energy sector's big stock move in 2021 and 2022 was mostly a recovery from a disastrous decade for Big Oil, when tens of billions of cash flow were lost on unprofitable fracking wells, and of a consolidation that was good for company profits, dividends and shareholder returns. lost 40% of its value between 2014 and 2019. But the pandemic drove the fast part of the bust, in part by leading Wall Street to insist on further cuts in capital spending, Thummel said.Recessions end, and oil demand has slowly rebounded after the 2020 downturn and lingering supply-chain shock. And rising prices for– which careened during Covid to less than $15 a barrel, shot back to $120 in 2022, and is now near $90 – can make previously-unprofitable plays work, he said.
to $106.6 billion last year from $199.7 billion in 2014, according to Statista, contributing to the decline in oil production and arguably delaying the recovery. AndAccording to Energy Department data, oil and gas companies paid out about $75 billion per quarter in the last year. The share of oil-company operating cash flow going to shareholdersOffsetting the decline in capital spending is higher productivity per well — while all of the U.S.
"The super-majors are taking capital out of offshore," Hatfield said. "They are reducing overseas development because it is more risky." "I believe crude prices will stay around the current level in the short term, and in the long term should trend down,'' he said. "If there are sanctions against Iran, that will be bad for consumers."What's good for oil companies in the short-term doesn't change the longer-term trajectory of the oil market or carbon reduction.
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