![]() ![]() That left many companies overextended, indebted and struggling - and that was before the pandemic caused an acute crisis for the entire oil industry. When they did make money, they poured it right back into more drilling, instead of taking it as profit. ![]() They turned all that Wall Street money into as much oil as they could possibly pump - oversupplying the market and keeping prices down. oil producers don't coordinate like that. That's why members of oil cartel OPEC negotiate with each other to keep global supply down, to limit volatility, boost prices and improve the bottom line for producers.īut U.S. It's a simple principle of supply and demand: the more oil that's for sale, the less each individual barrel is worth. got burned," says Dan Pickering, chief investment officer of Pickering Energy Partners.Įnergy The End Of Oil? Battle Lines Drawn As Industry Grapples With Energy's Future Instead, "the people that came in and put money to work. ![]() Even after oil prices crashed in 2014, they bailed out companies on the brink of bankruptcy, and waited for all their investments to pay off. Starry-eyed investors poured vast sums of money into the oil patch. Over the last decade, the fracking revolution sent U.S. To understand why, it helps to take a little trip back in time. And the call is coming from inside the house: it's oil investors who are pushing for companies to pump less oil. Oil companies are under a lot of pressure to keep their production down. producers are actually being restrained at the moment," says Helima Croft, global head of commodities strategy at RBC Capital Markets. But something strange is happening, or rather, not happening. Normally, that's a recipe for a drilling frenzy from U.S. Oil prices have risen sharply over the last few months. After getting burned by the oil industry's previous boom-and-bust cycles, Wall Street now wants energy companies to pump less crude, not more. Oil pump jacks operate at dusk in Long Beach, Calif., on April 21, 2020. ![]()
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