What’s up Chroniclers?! As many of you know, I study oil cycles and the massive outlier thus far in this cycle has been the lack of a capital spending (capex). The narrative is pretty clear at this point around the subject. managements’ and shareholders’ interests are better aligned,
Very interesting all the articles and very good graphics. The articles of the oil service companies are very good, could you do a similar one for NOV INC? It is one of the most punished by the market and could go up a lot if CAPEX is reinvested.
Thank you very much for sharing so much useful information.
Nice piece! Wonder what drove the remarkably steep drop in capital intensity of upstream production from $22 in 2014 to $8/boe now. Was it the majors exiting their highest-cost production acreages?
Excellent work. Id quibble only with one thing, PPE is a junky number unless you go back and add back write-offs - which for all but XOM are huge. Annual F&D over time would be a better proxy and more “market” oriented.
Excellent. As an old, now retired contrarian analyst, I am truly appreciative of your effort.
Yet given my now restricted life expectancy and hyper pessimistic outlook, my focus and portfolio is totally dedicated to PMs.
But I relayed your piece to younger and more knowledgeable friends.
I mean, capex/BoE should go down with technology. I agree overall absolute capex should keep increasing with inflation and more oil.
Very interesting all the articles and very good graphics. The articles of the oil service companies are very good, could you do a similar one for NOV INC? It is one of the most punished by the market and could go up a lot if CAPEX is reinvested.
Thank you very much for sharing so much useful information.
Nice piece! Wonder what drove the remarkably steep drop in capital intensity of upstream production from $22 in 2014 to $8/boe now. Was it the majors exiting their highest-cost production acreages?
Excellent work. Id quibble only with one thing, PPE is a junky number unless you go back and add back write-offs - which for all but XOM are huge. Annual F&D over time would be a better proxy and more “market” oriented.
Thanks,
A happy new subscriber
Great work. You always teach us a thing or two. Thank you.