Oil Investors Get $128 Billion Handout as Doubts Grow About Fossil Fuels

[Scott]

 

(Bloomberg) -- Worldwide oil demand is racing toward an all-time high and some of the smartest minds in the industry are forecasting $100-a-barrel crude in a matter of months, but US producers are playing the short game and looking to turn over as much cash as possible to investors.

 

Shareholders in US oil companies reaped a $128 billion windfall in 2022 thanks to a combination of global supply disruptions such as Russia’s war in Ukraine and intensifying Wall Street pressure to prioritize returns over finding untapped crude reserves. Oil executives who in years past were rewarded for investing in gigantic, long-term energy projects are now under the gun to funnel cash to investors who are increasingly convinced that the sunset of the fossil-fuel era is nigh.

 

https://finance.yahoo.com/news/oil-128-billion-handout-doubts-150101988.html

 

[KhunLA]

"Shareholders in US oil companies reaped a $128 billion windfall in 2022 thanks to"....

... price gouging the ignorant / stupid people who fell for all the BS.

 

I'm very thankful they did though, as pushed me to invest a few baht into solar & EVs.   Talk about biting the hand that feeds you ...  who's stupid now ????

[placeholder]

10 minutes ago, KhunLA said:

"Shareholders in US oil companies reaped a $128 billion windfall in 2022 thanks to"....

... price gouging the ignorant / stupid people who fell for all the BS.

 

I'm very thankful they did though, as pushed me to invest a few baht into solar & EVs.   Talk about biting the hand that feeds you ...  who's stupid now ????

You missed the point. Fossil fuel companies aren't plowing back their revenue into exploration the way they used to because investors believe that the long-term outlook for fossil fuels is grim. 

[KhunLA]

9 minutes ago, placeholder said:

You missed the point. Fossil fuel companies aren't plowing back their revenue into exploration the way they used to because investors believe that the long-term outlook for fossil fuels is grim. 

I think they found all the oil already for the people's needs, for the next century or so.  So they aren't really backing off, they simply don't need to.

 

Some of my market trades were in oil exploration companies, and then the rights to drill (deep sea) were auctioned off to oil companies, who, 15 yrs later, have yet to tap or pump 1 barrel from the reserves.  Just siting on the rights.