09 May Financial Recovery for Oil and Gas can Support the Energy Transition
This week’s review of hits and misses of the oil and gas market by Rigzone highlights the positives for the oil and gas players which can subsequently support and catalyze the transition to renewables.
When producers are strained to make ends meet, it’s difficult for them to focus their resources and attention on reducing emissions and on the overall energy transition. This week Chevron lifted its dividend and ExxonMobil announced a Q1 free cash flow of more than $9 billion. Other producers are expected to reflect positive forecasts for the remainder of 2021. These are signs of a speedy recovery from 2020, and should lead to more flexibility to invest into the energy transition.
Although the outlook for overall demand is still uncertain, causing producers to continue to temper their drilling programs, Validere’s Mark Le Dain adds that a surplus of production this week due to low non-OPEC compliance did not have an impact on price.
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