07-29-2022, 11:56 PM
(07-29-2022, 01:02 PM)Stewy Wrote: Let's clear something up here about record earnings in the O&G sector.
#1 - As I hope I proved in several posts in the Oil and Oil Price threads, the major Oil companies have little to no control on oil prices.
#2 - The Price Crash of 2014 and the continued oil price volatility to this day had the Oil companies slashing investments.
- No countries came to the Energy Industries rescue with subsidies or slashing royalties like the auto industry was bailed out.
- These for profit energy companies did what ANY corporate sector would do during a down turn, slashed investment and laid off workers of which I was one in 2015.
#3 - This economic driven lack of investment in finding new oil fields, has lead to long term production loss worldwide among the "for profit" portion of the oil industry. And companies are still following the capital discipline implemented in 2014-2016.
#4 - TotalEnergies - I work for TTE and our worldwide exploration budget has been the same the last three years and project to NOT go up over the next 5 years.
#5 - TTE is one of the staunchest investors in renewable energy worldwide, which is where all the extra money that we are not using for O&G exploration is going. And these are just two recent examples:
https://www.prnewswire.com/news-releases/united-states-totalenergies-wins-maritime-lease-to-develop-a-3-gw-offshore-wind-farm-on-the-east-coast-of-new-york-and-new-jersey-301491485.html
https://www.prnewswire.com/news-releases/totalenergies-wins-maritime-lease-to-develop-a-1-gw-offshore-wind-farm-off-north-carolinas-coast-301546953.html
I am sorry but people can't, have their cake and eat it too. Who do people think are going to PAY for the Energy transition. Not our govts'. it will be the current Energy companies that move us to a renewable and EV future, because they have the money and capitol discipline to make it work. it is so stupid how much people blame the O&G companies, when they're the ones who know how to find, produce and deliver energy. But the ignorance of the masses think it can happen over night, which is a fallacy.
Expecting immediate action, without thinking about the costs, consequences or having contingency plans is a luxury for profit corporations can literally not afford. The best example is the UK last winter that put all their bets into wind energy without a contingency plan, they experienced a "wind drought" and had to fire up coal fired plants again. When what they should have done was converted their coal plants to natural Gas (90% cleaner), with subsidies and tax breaks to encourage investment in renewables. Instead they are taxing O&G company profits, discouraging investment and hampering the Energy transition for political gain.
Bottom Line: The Energy companies need their profits because they are the ones will pay for and make the Energy Transition actually happen (as they already are). Leave it to our governments and the planet will burn.
I point to them when it comes to inflation because it all starts there, at least this time. They raise the price and make record profits and every piece of the supply chain gets more expensive and the consumer gets walloped. I’m not expecting immediate action. I’ve known pumping stuff out of the ground and burning it and dumping the waste into our atmosphere is bad for a long time. They have known longer than me.
And to me the timing doesn’t look accidental. Big oil lost money in 2020. Then a new prez takes over. One that didn’t name a big oil CEO as Secretary of State like Rex Tillerson. And like big powerful companies do they wield their power to get politicians helpful to their business back in power. Hence the price hikes.
