 |
Louisiana Light • 3 days | 87.12 | +0.03 | +0.03% | ||
|
Bonny Light • 1 day | 89.32 | +0.45 | +0.51% | ||
|
Opec Basket • 3 days | 86.51 | -1.01 | -1.15% | ||
|
Mars US • 174 days | 77.26 | -1.51 | -1.92% | ||
|
Gasoline • 10 mins | 2.737 | +0.003 | +0.11% |
|
Bonny Light • 1 day | 89.32 | +0.45 | +0.51% | ||
|
Girassol • 1 day | 89.90 | +0.45 | +0.50% | ||
|
Opec Basket • 3 days | 86.51 | -1.01 | -1.15% |
|
Peace Sour • 8 hours | 76.01 | -0.55 | -0.72% | ||
|
Light Sour Blend • 8 hours | 79.06 | -0.55 | -0.69% | ||
|
Syncrude Sweet Premium • 8 hours | 86.01 | -0.55 | -0.64% | ||
|
Central Alberta • 8 hours | 76.41 | -0.55 | -0.71% |
|
Eagle Ford • 3 days | 79.33 | -0.29 | -0.36% | ||
|
Oklahoma Sweet • 6 days | 79.75 | +0.50 | +0.63% | ||
|
Kansas Common • 2 days | 73.50 | +0.50 | +0.68% | ||
|
Buena Vista • 3 days | 87.02 | -0.29 | -0.33% |
Oil Price Volatility Soars Amid Geopolitical Uncertainty
Oil price volatility has climbed…
Gold Surges Past S&P 500 in Five-Year Growth
Gold has outperformed the S&P…
Oil And Gas Producers To Break New Cash Flow Records
Despite rising costs, oil and gas producers globally are expected to book new records in cash flows and offer the best return on capital employed (ROCE) in 15 years, BMO Capital Markets said in a new report cited by Upstream.
Stronger oil and gas prices will be the key driver of record cash flows in the industry, according to an analysis by BMO Capital Markets of 120 oil and gas firms globally.
Last year, for example, those companies generated a record $300 billion of free cash flow, compared to just $17 billion in 2020, the Canadian bank said. And cash flows are set to rise further as energy commodity prices rally.
The massive cash flows are expected to boost the role of the oil and gas sector in investing in the energy transition and decarbonization, BMO Capital Markets noted.
Despite rising costs of production and cost inflation in the supply chain, the bank says that the oil and gas sector offers “compelling value for a select subset of producers with vastly improving returns profiles.”
“We continue to believe that global under-investment presents substantial upside to fundamental support levels through 2025,” BMO said in its report carried by Upstream.
The oil and gas sector’s return on capital employed (ROCE) could hit next year the highest level since the 2008 financial crisis, with ROCE possibly topping 25% by 2023.
In another report, Deloitte said this week that oil and gas exploration and production (E&P) firms globally could generate combined cash flows of a record $1.4 trillion this year, thanks to high prices in the ongoing readjustment in the energy markets.
ADVERTISEMENT
Capital discipline has resulted in the oil and gas industry being “in one of its healthiest periods currently, with its lowest ever leverage ratio (20%) and one of its highest ever dividend yields (6%), compared to other sectors,” according to Deloitte.
By Michael Kern for Oilprice.com
More Top Reads From Oilprice.com:
- Natural Gas Demand Outpaces Production
- Russia Is Flaring Natural Gas While Choking Supply To Europe
- Czech Republic Calls Emergency EU Meeting On Energy Crisis
Related posts
Open57.81
Trading Vol.6.96M
Previous Vol.241.7B
That doesn't make Tesla or $IBM any less of a buy on days like today however needs noting as both are a play on keeping and sustaining an exceptionally well run electrical grid.
Long $unp Union Pacific Railroad
Strong buy