Investors in the US refuse shale drilling-FT
2022.12.11 01:48
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Investors in the US refuse shale drilling-FT
Budrigannews.com – In an interview with the Financial Times on Sunday, U.S. energy envoy Amos Hochstein referred to the country’s shale investors’ refusal to increase drilling as “un-American.”
The White House’s chief energy adviser told the Financial Times, “I think that the idea that financiers would tell companies in the United States not to increase production, to buy back shares, and to increase dividends when profits are at all-time highs is outrageous.” He added, “It is not only un-American, it is so unfair to the American public.”
Additionally, Hochstein criticized Exxon Mobil Corp. ‘s recent program to buy back shares
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“If you want to pay dividends, do so. Pay shareholders, you want to pay shareholders. If you want bonuses, do that as well. You could still invest more money by doing all of that. The Financial Times reported that he stated, “We are asking you to increase production and seize the moment.”
This week, Exxon announced share buybacks and increased the base salaries of its top executive and other executives for the upcoming year.
This year, between share buybacks and dividends, it is giving shareholders more cash than it is investing in new production: $30 billion. The company, on the other hand, has not altered its annual capital investment range of $20 billion to $25 billion until 2027.
This year’s high profits in the oil industry have caught the attention of U.S. President Joe Biden, who has said that Exxon is making “more money than God” and accused the industry of war profiteering.
Biden has repeatedly urged oil and gas companies in the United States to make the most of their record profits by increasing production and lowering fuel prices for Americans.
Hochstein’s remarks occur in the context of the G7’s recent price cap on Russian seaborne oil. The West is attempting to restrict Moscow’s ability to finance its war in Ukraine, but Russia has stated that it will not abide by the measure even if it must reduce production.
