Washington Update From the U.S. Oil & Gas Association: Like Real Meat, Oil is Back on the Menu

[Note: Tim Stewart, President of the U.S. Oil and Gas Association, writes terrific updates for his members periodically. He gave me permission to share this with paid subscribers.]

Looks Like Meat’s Back on the Menu!  

It is interesting how sizable profits can change investor’s outlook on the longevity of one’s core business. You likely have seen how London-based supermajors have backpedaled on their prior movement away from oil and gas in the last couple of weeks. Last week Shell’s CEO Wael Sawan said, “Our natural gas business continues to grow in a world that is desperately in need of natural gas at the moment, and I think for a long time to come.” He continued, “Gas has a critical role to play in the transition” to lower-carbon energy.”

This week, BP announced they were slowing their retreat from oil and gas. The stock market loved it and the stock advanced 10 percent in the next day and a half of trading.   

Turns out that in some years there is actual money to be made in oil and gas and diluting the portfolio away from those core assets impact returns.