Tornado Alley (PROG)

[sortagreen]

OK... so this is why people call you a moron.

Did you read the headline and make up a story? Sheffield spells it out in the article, and it has nothing to do with policy. It's about money. If you pump more oil the price goes down. And so does your stock.

Let me guess that before an hour ago you had no fucking idea who Pioneer even was. (duhhh... Didn't they used to make stereos?) How about Continental? Devon?

Try not to be so fucking lazy. Have you ever read an article on oilprice.com? Do you follow any of the news that affects your life? No. You watch Tucker Carlson and learn nothing but how to fling poop, like the other monkeys.

Speaking to the Financial Times in an interview, Sheffield said that returning to production growth now would cause an outflow of investors and energy stocks will plummet to the bottom of the stock market. And this is why no public oil driller would do it.

“You’ve got to realise: when you produce a 2 per cent return on capital employed, you end up being at the bottom of the S&P 500,” Sheffield told the FT. “And so if we end up doing what he’s asking us to do, we’ll end up back at the bottom of the S&P 500.”

Investor pressure for higher returns has been one of the reasons given by both industry and analysts for the current unwillingness of the U.S. shale oil industry to start ramping up output the way it always did in the past when prices rose.

These investors have been watching for years how shale drillers burn their cash in order to turn the United States in the biggest oil producer in the world. Then they had to watch all this breakdown in 2020 with oil prices dropping below zero for the first time in history, even though the drop was a short one

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Oilfield services cost a lot more than they did a couple of years ago and there are equipment shortages.

“He was criticising the majors and independents for not growing more. He doesn’t realise if we wanted to grow more than 5 per cent, I’d have to call up all the service contractors; they’re going to charge me 30 to 40 per cent more; it’s going to take a year to build new equipment; it’s going to take two years to start showing results. By that time, you may go through an oil price collapse,” Sheffield explained.

https://oilprice.com/Energy/Crude-Oil/Shale-Giant-Pioneer-Explains-Why-US-Drillers-Wont-Drill-More.html

I read all this a year ago in Forbes. You might claim you can read... Maybe you can, but it's pretty obvious you don't.