>>23365819Makes a lot of sense. Also the equipment servicing and depreciation probably has something to do with it as well. In an upstream oil company, the producing wells themselves are the depreciating/depleting assets and they require minimal investment to maintain, drilling a new well is a larger investment. The wells do depreciate/deplete but they still produce the oil, gas and NGLs which provides cash to offset the depletion. But the OFS companies don't have always have a source of cash flow from their equipment so those assets can depreciate without cash flows.
>Meanwhile, companies like the oil majors have both exploration & production (upstream) businesses as well as refining and chemical businesses (downstream).We can hopefully also add lithium to the list soon if Exxon and others succeed in their brine extraction technology
>>23365832see pic related. You're huffing some weird chemicals again aren't you?
