The first factor I want to look at is the curious case of the US rig count decline, even as oil prices have seen a dramatic increase since the beginning of the year. – via seekingalpha.com It remains to be seen whether this trend of declining rig activity, even as oil prices remain relatively firm.
Why? #Cash is King ,#Cashflow, Wallstreet has been pushing Oil companies to show more positive cash flow, and it’s working. Top 20 Oil Companies Improved Cash Flow By $34 Billion . Capital expenditures are the main reason that FCF went deeply negative for so many companies in recent years. When oil prices were $100 a barrel, oil companies invested every penny they could get their hands on into producing more oil. – It is true that capital expenditures are the main reason that FCF went deeply negative for so many companies in recent years. – Forbes.com In 2018 Only 10 of the 32 Fracking Companies secured positive cash flows towards the end of the year.