You are correct that failure to deliver returns is a factor in the oil industry’s move to prioritize returns; however, other factors such as ESG attempts to starve oil companies of capital by activists taking over board positions (Exxon), investment companies putting pressure on funds to dump energy stocks (BlackRock), and activist pushi…
You are correct that failure to deliver returns is a factor in the oil industry’s move to prioritize returns; however, other factors such as ESG attempts to starve oil companies of capital by activists taking over board positions (Exxon), investment companies putting pressure on funds to dump energy stocks (BlackRock), and activist pushing banks and insurance company’s to stop serving energy companies also played a role. On top of that, our government did make many very detrimental moves against the energy industry and the rhetoric before and after the election sent very clear signals to Big Oil that they were in the crosshairs. Investing in oil and gas wells is a long term investment and with that number of enemies plus a hostile government arrayed against you, taking it slow is the only sane coarse of action. Saying you are focusing on shareholders is a way to explain your actions without provoking those self-proclaimed enemies.
Don't disagree with any of that. But I would distinguish between the causes of lower production today (poor returns over last decade) and likely causes of constrained investment moving forwards (those same poor returns plus the factors you mention). Too many people are trying to pin the blame for lower investment 3/4/5 years ago manifesting today on Biden, which is obviously false.
You’re correct again. Also, two other factors constraining production today are labor and supply chain shortages. Whoever caused those will have to be decided by someone smarter than myself.
You are correct that failure to deliver returns is a factor in the oil industry’s move to prioritize returns; however, other factors such as ESG attempts to starve oil companies of capital by activists taking over board positions (Exxon), investment companies putting pressure on funds to dump energy stocks (BlackRock), and activist pushing banks and insurance company’s to stop serving energy companies also played a role. On top of that, our government did make many very detrimental moves against the energy industry and the rhetoric before and after the election sent very clear signals to Big Oil that they were in the crosshairs. Investing in oil and gas wells is a long term investment and with that number of enemies plus a hostile government arrayed against you, taking it slow is the only sane coarse of action. Saying you are focusing on shareholders is a way to explain your actions without provoking those self-proclaimed enemies.
Don't disagree with any of that. But I would distinguish between the causes of lower production today (poor returns over last decade) and likely causes of constrained investment moving forwards (those same poor returns plus the factors you mention). Too many people are trying to pin the blame for lower investment 3/4/5 years ago manifesting today on Biden, which is obviously false.
You’re correct again. Also, two other factors constraining production today are labor and supply chain shortages. Whoever caused those will have to be decided by someone smarter than myself.