echemi logo
Product
  • Product
  • Supplier
  • Inquiry
    Home > Chemicals Industry > International Chemical > Chronic underinvestment could push oil prices higher in 2022

    Chronic underinvestment could push oil prices higher in 2022

    • Last Update: 2022-01-23
    • Source: Internet
    • Author: User
    Search more information of high quality chemicals, good prices and reliable suppliers, visit www.echemi.com

    •Wall Street has increased pressure on the oil and gas industry to cut debt and boost shareholder value after the hydraulic fracturing revolution dried up the US shale industry with cash flow and debt.


    •After the hydraulic fracturing revolution dried up the US shale industry with cash flow and debt, Wall Street increased pressure on the oil and gas industry to cut debt and boost shareholder value •

    • The US shale industry has shown incredible restraint during the 2021 oil price rally

    • The US shale industry has shown incredible restraint during the 2021 oil price rally

    • Investment in new wells is down 60% from the 2014 peak, which could push oil prices higher in 2022

    • Investment in new wells is down 60% from the 2014 peak, which could push oil prices higher in 2022

    Americans, who have long suffered from runaway inflation, are finally getting a chance to breathe


    Sinochem News 

    The roots of today's high oil prices in the U.


    As a result, investment in new wells has plummeted 60% since its 2014 peak, causing U.


      No new drilling activity

     No new drilling activity No new drilling activity

      U.


      The EIA said sharp declines in DUC numbers in most major U.


      The two main stages of putting horizontal and hydraulically fractured wells into production are the drilling and completion stages


      According to statistics released by S&P Capital IQ, capital spending by 27 major U.


      shareholder return

     shareholder return shareholder return

      In addition to severely limiting new drilling activity, U.


      A recent report published by the website Accountable.


      Meanwhile, oil and gas companies have spent $8 billion on share buybacks, even as Exxon and Chevron have pledged to buy back as much as $20 billion over the next two years


      However, the most important reason why oil prices are likely to remain high in the coming year is OPEC's discipline: Tom Klossa, president of the Oil Price Information Service, quipped in an interview with CNBC recently: "This The cartel has traditionally been as disciplined as Charlie Sheen's alcoholism, but in 2020 this cartel is as disciplined as an Olympic gymnast


      oil shortage

    oil shortage oil shortage

      According to the International Energy Agency, global crude oil consumption is expected to rise to 99.


      Higher crude demand will put pressure on OPEC and the U.


      Canada, Norway, Guyana and Brazil may be trying to fill the global oil supply and demand gap, but some Wall Street investors believe that's not enough and prices will continue to rise


      In fact, Barclays predicts that the U.


      Goldman Sachs investment bank shares the optimistic outlook and forecasts that Brent crude will hit $85 a barrel by 2023, compared with the current $76.
    30 a barrel
    .

    This article is an English version of an article which is originally in the Chinese language on echemi.com and is provided for information purposes only. This website makes no representation or warranty of any kind, either expressed or implied, as to the accuracy, completeness ownership or reliability of the article or any translations thereof. If you have any concerns or complaints relating to the article, please send an email, providing a detailed description of the concern or complaint, to service@echemi.com. A staff member will contact you within 5 working days. Once verified, infringing content will be removed immediately.

    Contact Us

    The source of this page with content of products and services is from Internet, which doesn't represent ECHEMI's opinion. If you have any queries, please write to service@echemi.com. It will be replied within 5 days.

    Moreover, if you find any instances of plagiarism from the page, please send email to service@echemi.com with relevant evidence.