Related: IMF: Global Economy Heading Towards Worst Slowdown In 50 Years In the sector's most bullish forecast yet, Schlumberger compared the current era to the heady days of 2008 when oilfield contractors posted some of their best results in history thanks to high energy prices. ![]() Oil explorers across the globe are rapidly expanding the search for crude and natural gas on land and at sea. Schlumberger's robust growth is not an isolated case. It also does not help that oilfield services and drilling companies had some of the most high-risk debt during the crisis. oil companies are drilling much less, which does not bode well for revenue-starved oilfield services companies. The large decline in DUCs clearly shows that U.S. Energy Information Administration's latest Drilling Productivity Report, the United States' DUC tally plunged to 4,245 in June 2022, a sharp drop from 8,900 at its peak in 2019. However, many shale companies have so far been reluctant to go back to their trigger-happy drilling days, preferring instead to fall back on their dwindling stocks of drilled but uncompleted wells (DUCs) to keep going. ![]() Luckily for them, the good times are here again, with high oil and gas prices helping to massively improve their balance sheets. When the energy crisis hit a nadir two years ago, highly indebted American oil and gas companies quickly changed their playbook, adopting stricter cost discipline, cutting back on expensive drilling programs, and vowing to return more cash to shareholders in the form of dividends and buybacks.
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