While I agree that a healthy US industry is good, I don't see how the acquisitions make the industry better. If anything, I worry that we lose some flexibility and competition and that the resulting, bigger shale entities are easier to target by environmentalists and anti-growth types.
Hopefully, it's just typical corporate officer (agency effect) hubris. And some acquirers just lose some shareholder value, but that the industry structure is not significantly changed.
In any case, it's not like Esso is going to do a better job with their science or long laterals or whatever other silly McKinsey/Goldman justification they've come up with.
P.s. Goldman...they slap em together, they tear em apart. Glorified real estate agents.
As always, a terrific and cogent description of the current situation. It's interesting, as I consider the oil and gas space from my distance (I'm an FX guy), I cannot help but consider Doomberg's view that the current 'scarcity' is a political choice, not a physical one. As well, I concur that if/when prices rise enough such that there is significant pushback from the electorate, regardless of in the US or elsewhere, especially Europe, those political realities will result in more activity to recover reserves. But I'm sure it will be painful between now and then.
Thank you so much Andy. Without any doubt, there is on shortage of resource or infrastructure that could be developed under conditions of adequate profitability and supportive policy.
The personal note endings of your articles are refreshing. Thanks for providing balanced and reasonable analyses and also sprinkling in some wisdom/advice at the end. Much appreciated, please keep up the informative content.
"What we don't understand is why climate activists and others that are especially focused on climate spend so much time attacking the large, western, publicly-traded firms."
.
really?
1. availability heuristic. most don't look beyond their noses.
2. illusion of control. maybe some engine #1 activity will save the world.
basically it's just foolishness, ignorance and narcissism, as i'm sure you well know.
I’d add that these “activists” (aka busybodies) know their best bet on winning court cases and settlement checks is in the American court system where they can choose a favorable venue.
I’m convinced that most of the heads of these organizations don’t believe the nonsense they spew… because it is so nonsensical. Rather they continue to pursue it because they stole the bullhorn and built an effective eco-extortion business model.
Add to it the grifters looking to capitalize on public handouts and you have a climate alarmism complex that is completely uneconomic and ultimately unsustainable.
While I agree that a healthy US industry is good, I don't see how the acquisitions make the industry better. If anything, I worry that we lose some flexibility and competition and that the resulting, bigger shale entities are easier to target by environmentalists and anti-growth types.
Hopefully, it's just typical corporate officer (agency effect) hubris. And some acquirers just lose some shareholder value, but that the industry structure is not significantly changed.
In any case, it's not like Esso is going to do a better job with their science or long laterals or whatever other silly McKinsey/Goldman justification they've come up with.
P.s. Goldman...they slap em together, they tear em apart. Glorified real estate agents.
As always, a terrific and cogent description of the current situation. It's interesting, as I consider the oil and gas space from my distance (I'm an FX guy), I cannot help but consider Doomberg's view that the current 'scarcity' is a political choice, not a physical one. As well, I concur that if/when prices rise enough such that there is significant pushback from the electorate, regardless of in the US or elsewhere, especially Europe, those political realities will result in more activity to recover reserves. But I'm sure it will be painful between now and then.
Thank you so much Andy. Without any doubt, there is on shortage of resource or infrastructure that could be developed under conditions of adequate profitability and supportive policy.
Well done again!
thank you cerek!
The personal note endings of your articles are refreshing. Thanks for providing balanced and reasonable analyses and also sprinkling in some wisdom/advice at the end. Much appreciated, please keep up the informative content.
"What we don't understand is why climate activists and others that are especially focused on climate spend so much time attacking the large, western, publicly-traded firms."
.
really?
1. availability heuristic. most don't look beyond their noses.
2. illusion of control. maybe some engine #1 activity will save the world.
basically it's just foolishness, ignorance and narcissism, as i'm sure you well know.
.
and thank you for super-spiked.
I’d add that these “activists” (aka busybodies) know their best bet on winning court cases and settlement checks is in the American court system where they can choose a favorable venue.
I’m convinced that most of the heads of these organizations don’t believe the nonsense they spew… because it is so nonsensical. Rather they continue to pursue it because they stole the bullhorn and built an effective eco-extortion business model.
Add to it the grifters looking to capitalize on public handouts and you have a climate alarmism complex that is completely uneconomic and ultimately unsustainable.
Great work as always Arjun.
thank you NTX!
LOL, yes, probably directed more at the climate-oriented moderates vs the true zealots.
and thank you!
Over and over my comment is the same. Even though I repeat myself, I am sincere. Thank you Arjun. You are an important part of my Saturday mornings.
Saturday mornings I've set aside time for Superspiked. It's become a ritual. I don't drink coffee so I need a dose of Superspiked to energize me.
Thank you Investor!
I will never tire of receiving kind words!!! Thank you Martin