US oil companies find energy independence isn't so profitable
HOUSTON — For decades, elected leaders and corporate executives have chased a dream of independence from unstable or unfriendly foreign oil producers. Mission accomplished: Oil companies are producing record amounts of crude oil and natural gas in the United States and have become major exporters.
Yet the companies themselves are finding little to love about this seeming bonanza. With a global glut driving down prices, many are losing money and are staying afloat by selling assets and taking on debt.
The value of oil and gas stocks as a proportion of the S&P 500 over the last six years has dropped to about 4.6 percent, from 8.7 percent.
“It’s really a psychological punch in the gut,” said Matt Gallagher, chief executive of Parsley Energy, which has productive shale fields in the Permian Basin of Texas and New Mexico and has tripled output over the last three years. His company’s shares have tumbled to about $19 a share, from $38 in late 2016. “There’s a lot of risk in this industry, people are working very hard, and we feel we have made the right moves and it doesn’t show up in the share price.”
https://www.msn.com/en-us/money/companies/us-oil-companies-find-energy-independence-isnt-so-profitable/ar-AADEyRH?li=BBnbfcN
= new reply since forum marked as read
