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Gas prices are high. Oil CEOs reveal why they're not drilling more 본문

Hobby/News Critic

Gas prices are high. Oil CEOs reveal why they're not drilling more

focalpoint 2022. 3. 25. 12:24

The US oil industry doesn’t appear to be in rush to increase production despite the surging prices. The oil industry is restraining growth and it is largely because of capital discipline from Wall Street, according to a Federal Reserve Bank of Dallas survey.

A few years ago, the industry invested fortune in production growth. However, it resulted in keeping oil prices low which led hundreds of oil companies to go bankrupt. Today, for that reason, shareholders of the industry are only into getting their money back through dividends and buybacks rather than re-investing.

Only small portion of the executives polled pointed to government regulations and ESG issues as the primary reason why they are restraining production growth. Still, multiple executives expressed significant concern and mentioned that they are having personnel shortages due to the ‘vilification’ of the oil industry.

 

Link: https://edition.cnn.com/2022/03/24/energy/gas-prices-oil-production-wall-street/index.html

 

Gas prices are high. Oil CEOs reveal why they're not drilling more

The US oil industry doesn't appear to be in any rush to come to the rescue of Americans struggling with high gas prices. Oil company CEOs say Wall Street is to blame.

www.cnn.com