Why Oil companies aren't drilling more

[Moonglow]

Which means absolutely nothing, as production has yet to reach pre-COVID numbers.

Weekly U.S. Field Production of Crude Oil (Thousand Barrels per Day)

You have to realize, the current price spike has not a damned thing to do with supply. It is caused by speculation and FUD. Demand is still lower than it was just 3 years ago, when oil was less than half the price it is today.

It took eleven years to reach the production levels in 2019 after the crash of 2007-8.

 

[Mushroom]

Is that why Exxon committed 3 trillion to new wells in the US

I would absolutely love to see a verified reference to that claim.

I find it absolutely impossible to believe that a corporation valued at around $175 billion and with an annual profit of only around $30 billion could do a $3 trillion dollar investment. That would take only about a century to pay off, if it used all of the profits if they remained the same and there is absolutely no interest.

Reference, please.

 

[task0778]

Is that why Exxon committed 3 trillion to new wells in the US and has invested 10 billion more for their Guyana deposits?

LINK?

 

[Moonglow]

I would absolutely love to see a verified reference to that claim.

I find it absolutely impossible to believe that a corporation valued at around $175 billion and with an annual profit of only around $30 billion could do a $3 trillion dollar investment. That would take only about a century to pay off, if it used all of the profits if they remained the same and there is absolutely no interest.

Reference, please.

Exxon to invest $10 billion in massive Guyana offshore oil ...​

https://www.reuters.com › business › energy › exxon-inve...



Apr 4, 2022 — Exxon Mobil Corp on Monday decided to invest $10 billion in a fourth oil production project off the coast of Guyana, the largest in the ...

 

[Mushroom]

It took eleven years to reach the production levels in 2019 after the crash of 2007-8.

Because for most of that period the cost of oil was at record lows when accounting for inflation. It was cheaper to but it than to pump it ourselves.

 

[Moonglow]

LINK?

Just like the links I requested from you earlier?

 

[Moonglow]

I would absolutely love to see a verified reference to that claim.

I find it absolutely impossible to believe that a corporation valued at around $175 billion and with an annual profit of only around $30 billion could do a $3 trillion dollar investment. That would take only about a century to pay off, if it used all of the profits if they remained the same and there is absolutely no interest.

Reference, please.

Looking For Investment Income? This Stock Is A ... - Forbes​

https://www.forbes.com › greatspeculations › 2022/01/05



Jan 5, 2022 — In 2019, Exxon Mobil reported $265 billion in total revenues and $30 billion of operating cash flow at an operating cash flow margin of 11%.

 

[Dekster]

Not many businesses want to sell something at half what they can sell it for now, especially if it would cost them even more money to do it. That is just common sense.

 

[Mushroom]

Exxon to invest $10 billion in massive Guyana offshore oil ...​

https://www.reuters.com › business › energy › exxon-inve...



Apr 4, 2022 — Exxon Mobil Corp on Monday decided to invest $10 billion in a fourth oil production project off the coast of Guyana, the largest in the ...

That is not what we are demanding the link to.

Is that why Exxon committed 3 trillion to new wells in the US and has invested 10 billion more for their Guyana deposits?

Care to try again?

 

[Mushroom]

In 2019, Exxon Mobil reported $265 billion in total revenues

Revenues are not profit.

One is the gross money taken in, the other is the net money left over after expenses.

Holy hell, do you know nothing about economics at all?

 

[Moonglow]

Revenues are not profit.

One is the gross money taken in, the other is the net money left over after expenses.

Holy hell, do you know nothing about economics at all?

Am I supposed to know about economics or show your numbers are off?

 

[Mushroom]

Am I supposed to know about economics or show your numbers are off?

YOU ARE THE ONE THAT CLAIMED EXXON IS SPENDING THREE TRILLION DOLLARS IN NEW DRILLING!

Reference? Or do you want to just admit you were pulling nonsense out of your ass again?

You know I might even accept that you made a mistake, but there is a huge difference between writing three trillion in words, and $10 billion.

And I am not off, you apparently have no concept of the difference between revenue and profits. They are not even close to being the same thing.

 

[Toddsterpatriot]

The oil well count increased by 189 wells since 2021.

That's awesome!!!

Which Biden policy gets the credit?

 

[task0778]

Exxon to invest $10 billion in massive Guyana offshore oil ...​

https://www.reuters.com › business › energy › exxon-inve...



Apr 4, 2022 — Exxon Mobil Corp on Monday decided to invest $10 billion in a fourth oil production project off the coast of Guyana, the largest in the ...

So, how much did Exxon invest in new wells in the UNITED STATES? I'm guessing it wasn't anywhere near $3 trillion.

 

[okfine]

Nice, two your references are blocked by a paywall.

Of course, unless you are aware of this, a lot of oil production shut down in early 2020. And it had not a damned thing to do with the President. In fact, the price of oil at that time was so low that it was actually worthless. A lot of companies increased production, as many were predicting an oil shortage. When the demand dropped, the price sank like a stone and most companies simply shut down. And oil production still has not regained the levels of 2019.

Of course, there is something completely unrelated to anything else that is the cause for that.

So, pump more when it's worthless? Hmmm. How about leave it in the hole when it's worthless. Get it?

 

[Mushroom]

So, pump more when it's worthless? Hmmm. How about leave it in the hole when it's worthless. Get it?

And that is what they did. Production and use has yet to recover from Corona.

 

[theHawk]

The latest quarterly survey put out by the Federal Reserve Bank of Dallas shows that most executives are reticent about ramping up drilling because of pressure from investors and lenders, not from government regulations. That said, in anonymous comment sections of the survey, the executives laid into Biden and other officials for getting in the industry’s way.
.
.
When asked why they aren’t raising production more, 59% of respondents said it was because investors are pressuring them to maintain capital discipline. Another 11% said it was because of the environmental social and governance movement, 8% said it was because of trouble accessing financing and 6% said it was because of government regulations. Another 15% marked “other,” which included things like “personnel shortages, limited availability of equipment, and supply-chain issues.”

“The industry is facing serious supply issues for the materials needed to grow production,” wrote one production executive in the comments section.

In addition, the Fed asked producers what price of West Texas Intermediate oil it would take for them to get back into “growth mode.” For 41%, they said they needed prices to be $80 to $99 a barrel, a level that WTI has already surpassed. But the second-most respondents—29%—said the price didn’t matter. That implies that they are sticking to their production plans no matter what, a departure from past oil booms.

Even if other factors are causing slow growth, several executives said in the comments section of the survey that political pressure—from the federal or state government—was hurting the industry.

“In the first quarter of 2021, I divested all properties in the state of Colorado due to the unbelievably hostile and increasingly aggressive regulatory environment driven by anti-fossil-fuel ideology,” said one oil producer. “The administration has no clue about the oil-and-gas industry,” an oil services executive said.

Texas Survey Shows Why Oil Producers Aren't Drilling More

Some 59% of the energy firms that responded said investors were pressuring them to maintain capital discipline.

www.barrons.com

The Biden Administration has made no secret of their desire to put the Oil & Gas industry out of business, and they have not been shy about doing whatever they can to make it more difficult to produce more oil and LNG. Even now, the Biden would rather buy foreign oil from people who are less constrained by environmental concerns and also release oil reserves that are supposed to be only for national emergencies.

They can’t drill where they want. The few government approved “permits” are remote areas with no ability to build new pipelines. They cancelled or blocked permits that would be useful, like the Gulf of Mexico.

They also see the incoming economic reckoning coming, so they aren’t going to want to make risky expansions.

 

[toobfreak]

Why Oil companies aren't drilling more​

ALL PART OF THE DEMOCRAT PLAN. I mean, you didn't really think these people were stupid enough not to expect and see their actions were not

only not working, but were having a disastrous effect on everything? The only ones benefiting from the Biden Administration are 3rd world aliens

being let in and actually assisted into the country and they are NOT Americans, they hold no sway for nor allegiance to this country, and, we don't

even know WHO THESE PEOPLE ARE, WHERE THEY CAME FROM, OR WHAT THEY ARE DOING HERE!

Now imagine doing all this to a nation just just went through two years of Covid, masks, restrictions, and total social and economic shut downs?!

Can you think of a WORSE THING you could do to a country right now than what the Bidens are doing?

 

[RoshawnMarkwees]

Not many businesses want to sell something at half what they can sell it for now, especially if it would cost them even more money to do it. That is just common sense.

Unless they price themselves out of business or if what they sell undergirds every aspect of the economy.

 

[badger2]

The latest quarterly survey put out by the Federal Reserve Bank of Dallas shows that most executives are reticent about ramping up drilling because of pressure from investors and lenders, not from government regulations. That said, in anonymous comment sections of the survey, the executives laid into Biden and other officials for getting in the industry’s way.
.
.
When asked why they aren’t raising production more, 59% of respondents said it was because investors are pressuring them to maintain capital discipline. Another 11% said it was because of the environmental social and governance movement, 8% said it was because of trouble accessing financing and 6% said it was because of government regulations. Another 15% marked “other,” which included things like “personnel shortages, limited availability of equipment, and supply-chain issues.”

“The industry is facing serious supply issues for the materials needed to grow production,” wrote one production executive in the comments section.

In addition, the Fed asked producers what price of West Texas Intermediate oil it would take for them to get back into “growth mode.” For 41%, they said they needed prices to be $80 to $99 a barrel, a level that WTI has already surpassed. But the second-most respondents—29%—said the price didn’t matter. That implies that they are sticking to their production plans no matter what, a departure from past oil booms.

Even if other factors are causing slow growth, several executives said in the comments section of the survey that political pressure—from the federal or state government—was hurting the industry.

“In the first quarter of 2021, I divested all properties in the state of Colorado due to the unbelievably hostile and increasingly aggressive regulatory environment driven by anti-fossil-fuel ideology,” said one oil producer. “The administration has no clue about the oil-and-gas industry,” an oil services executive said.

Texas Survey Shows Why Oil Producers Aren't Drilling More

Some 59% of the energy firms that responded said investors were pressuring them to maintain capital discipline.

www.barrons.com

The Biden Administration has made no secret of their desire to put the Oil & Gas industry out of business, and they have not been shy about doing whatever they can to make it more difficult to produce more oil and LNG. Even now, the Biden would rather buy foreign oil from people who are less constrained by environmental concerns and also release oil reserves that are supposed to be only for national emergencies.

"Capital discipline" is just another way of saying putting a leash on capitalism's intimate relationship to the schizophrenic process, where it constantly sets, then repels, its own limits.