• 3 minutes Biden Seeks $2 Trillion Clean Energy And Infrastructure Spending Boost
  • 5 minutes While U.S. Pipelines Are Under Siege, China Streamlines Its Oil and Gas Network
  • 8 minutes Gazprom fails to exempt Nord Stream-2 from EU market rules
  • 15 hours Trumpist lies about coronavirus too bad for Facebook - BANNED!
  • 1 day The Truth about Chinese and Indian Engineering
  • 57 mins Why Oil could hit $100
  • 36 mins China's impending economic meltdown
  • 15 hours The World is Facing a Solar Panel Waste Problem
  • 2 days The Core Issue Of US Chaos..Finally disclosed
  • 8 hours Pompeo upsets China; oil & gas prices to fall
  • 5 hours Renewables Overtake Coal, But Lag Far Behind Oil And Natural Gas
  • 4 hours Open letter from Politico about US-russian relations
  • 3 hours Brent above $45. Holding breath for $50??
  • 1 day Sell Natural Gas Benefits to Grow the Market!
  • 2 days Rational analysis of CV19 from Harvard Medical School
  • 1 day Trump Suggests Delaying Election Amid Fraud Claims
  • 2 days Russia Trying To Steal COVID-19 Vaccine Data, Say UK, U.S. and Canada
Dan Dicker

Dan Dicker

Dan Dicker is a 25 year veteran of the New York Mercantile Exchange where he traded crude oil, natural gas, unleaded gasoline and heating oil…

More Info

The Oil Investment For The Long Haul

Conoco-Philips started the ball rolling with 3rd quarter reports yesterday and most of the analysts buried the lede. Yes, there was a minor beat on earnings, but that was hardly the story that needed highlighting; it was the continued reduction of capex guidance, down 6% from Q2 reports, that has indicated a very, very critical trend for oil companies and oil’s price going forward from here.

I have written in the past with much frustration about oil companies “lemmings-like” behavior. To quickly recap, oil companies were being rewarded for years by stock analysts and the markets by one measure of progress only – production increases. As oil cratered in mid-2014, oil companies were slow to realign this strategy; Instead, cutting top line spending while maintaining production growth in core holdings, whether those were conventional, non-conventional or off-shore assets.

The theory among oil companies was that the turn down in oil prices was a very temporary one, and when prices inevitably (and quickly) rebounded, they would be on track to be best rewarded (just as they always had) with ever increasing crude oil production. Obviously it didn’t happen in 2015. Suddenly in 2016, oil companies believed that the worst was surely behind them and they prepared to re-ramp capex upwards to ‘pre-bust’ levels. But the markets foiled their plans again – and oil prices couldn’t recover in 2016 either.

This year, oil…




Oilprice - The No. 1 Source for Oil & Energy News