From the blog, January 13, 2022:
From COP's CEO, link to Julianne Geiger:There are three reasons given for rig counts not increasing:
- operators showing restraint; focused on free cash flow, not growth;
- supply chain shortages impacting oil industry;
- labor shortage.
Consolidation: so, if operators want to grow, how do they do it? Simply buying land / mineral rights won't be enough. They need to acquire entire companies: drilling assets and human resources.
- COP's CEO sees more consolidation.
- ConocoPhillips itself snagged some assets from Shell and Concho
Resources last year in two deals worth nearly $20 billion. The deal
catapulted Conoco into America's second most prolific Permian producer.
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