At the end of 2022, US oil companies paid their shareholders “unexpectedly high” dividends totaling $128 billion. But these dynamics also have their downsides – leaders of large commodity firms may suffer more from investments in long-term projects related to fossil fuels. , a period that will inevitably end in the foreseeable future, informs Bloomberg agency.
“U.S. oil shareholders made an unexpected $128 billion gain in 2022, thanks to a combination of global supply disruptions, such as Russia’s war in Ukraine, and Wall Street’s pressure to prioritize profitability over finding untapped oil reserves,” the article states.
As a result, the long-term sustainability of major US oil companies may be at stake. The reason for this may be an increase in the costs associated with paying dividends and developing new fields, against the background of the impending decline in world demand for fossil fuels. The article states that as a result, the payback for their work may come to naught in the future.
“Oil managers, who have been rewarded in the past for investing in giant, long-term energy projects, are now under arms to channel money to investors who are increasingly convinced that the end of the fossil fuel age is near,” the note said.
February 25 Natalia Milchakova, Lead Analyst at Freedom Finance Global estimated Oil prices are in the $82-$85 a barrel corridor in early March this year. At the same time, the dynamics of commodity quotes will largely depend on the data on commercial oil reserves in the United States – their decrease can cause a sharp jump in prices.