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Quoted By: >>1111776
https://oilprice.com/Energy/Energy-General/Big-Oil-Is-Not-Dancing-To-Government-Tunes-Period.html
https://www.ft.com/content/4192caf1-8626-4131-9777-ceb82860fdb3?desktop=true&segmentId=7c8f09b9-9b61-4fbb-9430-9208a9e233c8
Several days ago, President Biden made a media splash when he threatened oil companies with windfall taxes and “other restrictions” if they don’t stop returning cash to shareholders and start investing this cash in more oil production.
The industry, via the American Petroleum Institute, responded with yet another reiteration of the fact that the oil market is a global one, and producers don’t have complete control over prices because it is also a free market.
Oil producers, big and small, did not react to the U.S. President’s latest attack on it. The industry simply continued what it has been doing since oil prices rebounded: returning cash to shareholders and planning its spending carefully.
Bloomberg’s Javier Blas summed the situation up in a pithy commentary that basically reminded everyone that this same administration that is now calling for more oil, just two years ago pledged to reduce oil drilling in the U.S. as much as possible. And that this administration, along with other powerful institutions was the same one that convinced the oil industry there was really no point in including strong production growth in their long-term plans.
The Financial Times also published an analysis with the same message this week: too many agencies wanted the oil industry to stop expanding its business by increasing the production of oil. What we see now is the logical consequences of this behavior.
None other than the International Energy Agency has just warned that oil demand growth will peak by the mid-2030s, the FT noted, and the U.S. president wants oil companies to spend billions on what will effectively become stranded assets in a few short years.
https://www.ft.com/content/4192caf1-8626-4131-9777-ceb82860fdb3?desktop=true&segmentId=7c8f09b9-9b61-4fbb-9430-9208a9e233c8
Several days ago, President Biden made a media splash when he threatened oil companies with windfall taxes and “other restrictions” if they don’t stop returning cash to shareholders and start investing this cash in more oil production.
The industry, via the American Petroleum Institute, responded with yet another reiteration of the fact that the oil market is a global one, and producers don’t have complete control over prices because it is also a free market.
Oil producers, big and small, did not react to the U.S. President’s latest attack on it. The industry simply continued what it has been doing since oil prices rebounded: returning cash to shareholders and planning its spending carefully.
Bloomberg’s Javier Blas summed the situation up in a pithy commentary that basically reminded everyone that this same administration that is now calling for more oil, just two years ago pledged to reduce oil drilling in the U.S. as much as possible. And that this administration, along with other powerful institutions was the same one that convinced the oil industry there was really no point in including strong production growth in their long-term plans.
The Financial Times also published an analysis with the same message this week: too many agencies wanted the oil industry to stop expanding its business by increasing the production of oil. What we see now is the logical consequences of this behavior.
None other than the International Energy Agency has just warned that oil demand growth will peak by the mid-2030s, the FT noted, and the U.S. president wants oil companies to spend billions on what will effectively become stranded assets in a few short years.
