• 3 minutes Trump vs. MbS
  • 11 minutes Can the World Survive without Saudi Oil?
  • 19 minutes Saudis Threaten Retaliation If Sanctions are Imposed
  • 56 mins WTI @ $75.75, headed for $64 - 67
  • 57 mins EU to Splash Billions on Battery Factories
  • 3 hours US top CEO's are spending their own money on the midterm elections
  • 22 mins The Dirt on Clean Electric Cars
  • 11 hours Petrol versus EV
  • 5 hours OPEC Is Struggling To Deliver On Increased Output Pledge
  • 11 mins Satellite Moons to Replace Streetlamps?!
  • 3 hours The Balkans Are Coming Apart at the Seams Again
  • 8 hours 10 Incredible Facts about U.S. LNG
  • 53 mins Uber IPO Proposals Value Company at $120 Billion
  • 16 hours E-mopeds
  • 3 hours A $2 Trillion Saudi Aramco IPO Keeps Getting Less Realistic
  • 7 hours U.N. About Climate Change: World Must Take 'Unprecedented' Steps To Avert Worst Effects
  • 1 day These are the world’s most competitive economies: US No. 1
Alt Text

Are Energy Majors Under Threat From Big Tech?

Audi and Amazon have teamed…

Alt Text

China Turns Its Back On U.S. Oil

As the ongoing trade war…

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

Trending Discussions

The Oil Investment For The Long Haul

Fracking

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…

To read the full article

Please sign up and become a premium OilPrice.com member to gain access to read the full article.

RegisterLogin

Trending Discussions





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