g5000
Diamond Member
- Nov 26, 2011
- 127,128
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- #41
Our oil companies shut down a lot of their operations when the oil price went negative last year. They laid off tens of thousands of workers. They took a bath financially.
It will take a while to get back up to speed. But it will get back up to speed.
Their investors don't want them to, though.
But even the investors who are sticking with oil and gas are putting a lot of pressure on companies to rein themselves in.
And that makes a big difference. Many oil producers need Wall Street money to fund new wells. Investors control the purse strings. And right now, investors just aren't impressed by how many barrels a company says they can drill.
"Investing for the sake of growth is not what investors want," says Pickering, of Pickering Energy Partners. "Growth got us more barrels. It got us too many barrels. It got us low prices. It got us weak returns."
Less oil, more cash in hand: That, in a nutshell, is what oil financiers are demanding. And in response, executives are vowing that they'll be responsible, and focus on profits over oil.
It will take a while to get back up to speed. But it will get back up to speed.
Their investors don't want them to, though.
Hold That Drill: Why Wall Street Wants Energy Companies To Pump Less Oil, Not More
After bankrolling oil companies for years and seeing poor returns, investors are now pressuring companies to keep their oil output lower, instead of higher.
www.npr.org
But even the investors who are sticking with oil and gas are putting a lot of pressure on companies to rein themselves in.
And that makes a big difference. Many oil producers need Wall Street money to fund new wells. Investors control the purse strings. And right now, investors just aren't impressed by how many barrels a company says they can drill.
"Investing for the sake of growth is not what investors want," says Pickering, of Pickering Energy Partners. "Growth got us more barrels. It got us too many barrels. It got us low prices. It got us weak returns."
Less oil, more cash in hand: That, in a nutshell, is what oil financiers are demanding. And in response, executives are vowing that they'll be responsible, and focus on profits over oil.