Posted on 06/29/2021 11:01:15 AM PDT by SeekAndFind
Higher oil prices and capital expenditure discipline are setting the stage for the highest free cash flow on record for the world’s exploration and production companies this year. And U.S. shale firms—set to generate $60 billion free cash flow—are primed for playing a key role in the record-breaking free cash flow from global upstream operations. The U.S. shale patch is expected to be the biggest beneficiary of capex discipline and high oil prices, as well as the largest contributor to the highest-ever free cash flows from the upstream business globally, independent research firm Rystad Energy said in a new report.
$70 oil can certainly help a lot, but it is also capital discipline at every single oil company - from supermajors to U.S. independents - that is contributing to record cash flows this year.
The world’s public oil firms are set to see their combined free cash flow—all cash flows from upstream activity excluding such from financing or hedging effects—surge to a record-breaking $348 billion in 2021. According to estimates from Rystad Energy, this would be $37 billion higher than the previous all-time high of $311 billion, which was generated in 2008. Back then, just before the financial crisis, oil prices averaged $100 a barrel that year.
The key driver of record cash flows would be the U.S. shale patch, which is estimated to rake in nearly $60 billion in free cash flow before hedging effects, Rystad Energy forecasts.
This would be quite a U-turn in the financial fortunes of U.S. shale drillers, which have struggled to generate positive free cash flow for a decade since the shale revolution began.
(Excerpt) Read more at oilprice.com ...
The US needs crude at $55 - 60 a barrel NO HIGHER!
About $75 is perfect.
By the way. Natural gas is selling about twice as much as it did this time last year. Dims love using energy to beat down the middle class.
I called my propane supplier last week to inquire about their current rate per gallon. I wanted to have them top off my tank thinking it was that time of year when it’s usually at it’s cheapest cost. Nope, it’s the exact same price it was in late January when I had to have the tank filled.
I can only image how expensive it will become this winter...
Bkmk
This is one of the reasons I put a bunch of solar panels on my roof.
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