U.S. energy shareholders seek to leave behind a lost decade

NEW YORK (Reuters) – The 2010s was a lost decade for shares of U.S. energy companies overall. Volatile commodity prices amid growing supply, poor financial performance and disfavor from some investor groups all contributed to the energy sector’s transformation from investor darling to investor outcast. U.S. crude prices CLc1 fell more than 20% during the 2010s, while the rise of alternative energy also brought pressure, with some stock buyers shunning fossil fuel investments as socially irresponsible. But with the dawn of a new decade, some investors say the sun is also rising on energy shares. The energy sector’s swoon defied a boom in U.S. domestic oil production, sparked by the advent of hydraulic fracturing, or “fracking.” Ten years ago, the United States was a net importer of about 10 million barrels per day of oil and fuels. It ends the decade poised to become a net exporter of oil and fuel products. “It really is a great irony that at a time when the United States became the world’s biggest producer and has become a great exporter, that investors have become skeptical and have adopted a position of ‘show me the money,’” said Daniel Yergin, vice chairman of IHS Markit.… continue reading

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