Back with The Frack
With oil hovering below $50 a barrel, it might surprise you that U.S. oil companies are doing well. Just take a peek at Exxon.
Despite a share price that’s been stuck in a rut (down 12% this year), Exxon posted second quarter profits of $3.35 billion, up from $1.7 billion in Q2 last year. So, what’s been the secret sauce?
A shift toward short-term strategies like fracking and deepwater drilling. U.S. oil companies are moving from long-term, high upfront cost productions to “short cycle” operations as they prepare for a world, where oil never returns to $100 a barrel.
And with Exxon posting its strongest quarter since the 2014 price crash, it looks to be paying off.
(BroBible.com)
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