By Paul Sankey
Published on August 1, 2021 at 1:25 PM
We found ourselves standing on the North Slope, Alaska, above the Arctic Circle, surveying the endless flat tundra. There there is no sunlight from October to early March; total darkness over half the year. For the rest of the year, the sun does not go down – no darkness. That place, my friend, is Far North. The nearest city is Anchorage, 1,000 miles south, itself as distant as Perth Australia; palpably remote; strange and distant […]
Read More
By Paul Sankey
Published on July 29, 2021 at 9:29 AM
When we wrote The Renaissance Thesis of US E&P in 2017, we argued that oil companies had to stop pursuing growth, reduce capex, increase returns and free cashflow and stop hedging. We also highlighted that management pay relative to performance was an insult to shareholders (those shareholders that remain). The anti-hedging argument was originally made successfully to the refiners. In fact, the overall thesis on E&P was based on success earlier in the decade, changing […]
Read More
By Paul Sankey
Published on July 9, 2021 at 12:03 PM
It was the optimum Happy Hour last night, with two expert witnesses, Kathleen Kelley and Jan Stuart, both highly tenured oil market experts, and a mix of long-only and long-short investors, mutual fund and hedge fund. We were also spread across the globe from Amsterdam to Mexico, with Kathleen struggling in a New York flash flood situation that resulted in a viral video of a lady wading into waist deep water to the NYC Subway. […]
Read More
