(We knew this)
Reminder: US oil companies are loyally republican and really don’t give a crap about American consumers
www.cnbc.com
Reminder: US oil companies are loyally republican and really don’t give a crap about American consumers
Why isn't Big Oil drilling more as gas prices surge? The answer is more Wall Street than White House
Behind the 38% surge in pump prices this year is a 24% drop in domestic crude production after Covid, but not for the reasons you think.
- Oil company capital spending has been dropping since the mid-2010s, making it hard to ramp up new production quickly as economy rebounds.
- About half of last year’s lost production has returned, but prices will stay high until domestic producers pump more, or OPEC nations make a change in their production quotas.
- Investment in new wells has dropped more than 60%, causing U.S. crude oil production to plummet by more than 3 million barrels a day, or nearly 25%, just as the Covid virus hit, and then fail to recover with the economy. For an oil-drilling sector that lost 90% of its stock value from 2012 through early last year, it hasn’t been the toughest call in the world
- “For really the decade that ended in 2019 or 2020, there was an energy revolution and what did the energy sector get? They were the worst performers in the S&P 500,″ said Rob Thummel, portfolio manager at Tortoise Capital in Overland Park, Kansas.
