For Oil Producers Cash Is King, and That's Why They Just Can't Stop Drilling
- Shale producers with growth plans at $40 oil have outperformed
- U.S. crude output rose 19% even after $22 billion in cuts
Risk of "Sharp" Oil Rebound in 12 Months, Sen Says
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Investors sent a surprising message to U.S. shale producers as crude fell almost 20 percent in August: keep calm and drill on.
While most oil stocks have fallen sharply this month, the least affected by the slump share one thing in common: they don’t plan to slow down, even though a glut of supply is forcing prices down. Cimarex Energy Co. jumped more than 8 percent in two days after executives said Aug. 5 that their rig count would more than double next year. Pioneer Natural Resources Co. rallied for three days when it disclosed a similar increase.