The Rebirth Of Oil And Gas

Gregory Callebaut -

From Bankruptcy In 2020 To Racking Profits in 2022

One of the biggest stars of the fracking boom was Chesapeake Energy Corp., which enjoyed years of success thanks to its capacity to access massive reserves of American natural gas. But by the summer of 2020, the pandemic and lockdowns had dried up revenue, and the business had filed for bankruptcy protection following a significant, poorly timed growth.

However, Chesapeake made $1.3 billion in profit in the first nine months of last year. Over the same time period, it distributed $800 million in dividends to its shareholders. Since the company's shares were re-listed in early 2021, their stock has more than doubled.

  • Fossil fuels have shown remarkable resilience thanks to a variety of events, from the Russian invasion of Ukraine to the U.S. economic recovery
  • According to analysts' estimates, profits for the world's largest oil firms have increased to about $173 billion so far this year

A Surge In Global Demand For U.S. Oil And Gas

Over the past few years, the U.S. has emerged as a major exporter of crude oil, but since World War II, exports have not kept pace with imports. This might change in 2023.

A record 3.4 million barrels per day (bpd) of U.S. oil are being exported to other countries, along with around 3 million bpd of refined products like gasoline and diesel. The U.S. is also the largest LNG exporter, where growth is anticipated to skyrocket in the upcoming years.

  • The surge in worldwide demand for American oil and gas led to hug profit margins producers have benefitted from
  • “What’s really happened is the world has realized there is a need for hydrocarbons in energy policy,” Domenic Dell'Osso, CEO of Chesapeake
  • "Russia's invasion of Ukraine has spurred new demand for U.S. energy and should push oil exports above imports late next year assuming shale output accelerates," Rohit Rathod, analyst at Vortexa

Disclaimer

Please note that this article does not constitute investment advice in any form. This article is not a research report and is not intended to serve as the basis for any investment decision. All investments involve risk and the past performance of a security or financial product does not guarantee future returns. Investors have to conduct their own research before conducting any transaction. There is always the risk of losing parts or all of your money when you invest in securities or other financial products.

Credits

Photo by David Thielen on Unsplash