RE:RE:RE:The seesaw battleThe whole oil industry is in a difficult place. Particularly the majors. BP saw the writing on the wall after their Gulf Coast disaster. Share prices increases have been stunted for most companies way below the increase in commodity prices an yet cash flows are rising dramatically.
Renewables etc are very capex intensive and low return investments. The Industry knows this and so does the market What to do ?
Well the first one is obvious . Pay down debt. The next is very risky increase Capex. That leaves 2 choices divies vs buyback reward investors now or much more later ?
It really is that simple !!