Post by the Scribe on Jul 11, 2022 22:15:57 GMT
"Oil and gas companies do not want to drill more," Pavel Molchanov, an analyst at Raymond James, said earlier this spring.
"They are under pressure from the financial community to pay more dividends, to do more share buybacks, instead of the proverbial 'drill baby drill,' which is the way they would have done things 10 years ago. Corporate strategy has fundamentally changed."
One of the starkest examples: ExxonMobil (XOM) last month announced first quarter profits of $8.8 billion, more than triple the level of a year ago when excluding special items. It also announced a $30 billion share repurchase plan, far more than the $21 billion to $24 billion it expects to spend on all capital investment, including searching for new oil.
www.cnn.com/2022/06/06/energy/record-gas-prices-causes/index.html
"They are under pressure from the financial community to pay more dividends, to do more share buybacks, instead of the proverbial 'drill baby drill,' which is the way they would have done things 10 years ago. Corporate strategy has fundamentally changed."
One of the starkest examples: ExxonMobil (XOM) last month announced first quarter profits of $8.8 billion, more than triple the level of a year ago when excluding special items. It also announced a $30 billion share repurchase plan, far more than the $21 billion to $24 billion it expects to spend on all capital investment, including searching for new oil.
www.cnn.com/2022/06/06/energy/record-gas-prices-causes/index.html