Buyers are demanding extra from oil corporations this 12 months: Extra spending self-discipline, additional cash returns, extra particulars round power transition methods. They need to add another factor to the record: Extra humility.
After an auspicious 12 months, a gaggle of producers tracked by Raymond James lowered the share of manufacturing they hedged utilizing derivatives by practically a half for 2022 in contrast with this 12 months. No marvel. With oil and pure gasoline costs not too long ago hitting multiyear highs, this wasn’t an incredible 12 months for power corporations to lock within the value at which they offered these commodities.
