Oil prices are the highest in recent years, and politicians want companies to inflate more. But most major American frackers are standing or even allowing production to decline, and instead are handing out cash to investors.
Much of the U.S. shale industry recently reported higher profits than in the same quarter a year earlier, but companies are not reinvesting more in production – indeed, some have allowed U.S. production to decline by focusing on payroll investors. This week, the nine largest U.S. oil producers said they paid shareholders $ 9.4 billion through dividends and share repurchases in the first quarter about 54% more than they invested in new oil developments.
This article is first published on Source link