Between 2014 and 2019, executive compensation among these companies rose almost 70%, according to the watchdog group Documented.
Why that's surprising: In the same time period, an S&P shale ETF fell by roughly the same amount.
Two questions: (1) What am I doing with my life and (2) why are shale oil CEOs making so much money — even as their companies lose billions in market value?
In early May, Chesapeake Energy announced it would pre-pay $25 million of executive bonuses, days before Bloomberg News reported that the natural gas giant was preparing a bankruptcy filing.
Neither company responded to Business Insider's request for comment.
"If you're an oil CEO, you're kind of in a no-fail situation because you get compensated even if you don't make any money," Kelly Mitchell, senior analyst at Documented, told me.
The rise: Oil gained value faster than most Wall Street analysts expected.
In May, US crude oil posted its sharpest monthly gains ever. Today, it's up more than 15% since mid-March.
OPEC+ extended its record supply cuts through July, but the recovery is mostly about rising demand for fuel. Apple data suggest people are driving a lot more.
Demand could fully recover by the end of 2021, Morgan Stanley analysts say.
Some US producers are taking shuttered oil wells back online as a result of the recovery.
The stall: The rally that sent prices surging has stalled as concerns of a second coronavirus outbreak mount.
Oil prices are on track to fall for the first week in about two months.
Goldman analysts said fear of a second outbreak, an enormous oil surplus, and an uncertain future of demand would cause the price to fall in the "coming weeks."
The bank went as far as to call reversing well shut-ins "premature."
It might have come as good news when BP announced a three-month layoff moratorium back in March, amid the oil market meltdown. But any assurance quickly dried up on Monday, when the London-based company announced that it would cut about 10,000 workers.
BP's chief said it costs about $22 billion a year to run BP, and more than one-third of that budget is allocated to personnel.
"The oil price has plunged well below the level we need to turn a profit," he said in a memo published on LinkedIn. "We are spending much, much more than we make — I am talking millions of dollars, every day."
The company also said it's lifting a freeze on pay increases and promotions, but that it won't pay bonuses this year.
Will Shell follow suit? BP's cut followed a similar move by Chevron, reported in late May. Bloomberg reported that Shell is offering voluntary severance for at least some staff, but it's not yet clear what the extent of its cuts will look like.
A master reading list on racism and the environment. (New York Times)
This week's top stories
Big study. The US can achieve 90% clean energy by 2035 affordably, according to a new study from UC Berkeley and GridLab.
Solar growth. The solar industry is set to install a record amount of solar energy this year, even as the coronavirus stalls the residential sector, according to research by Wood Mackenzie and SEIA.
Tesla's competitor. Shares of the electric truck maker Nikola Motors surged this week. At market close on Tuesday, Nikola was more valuable than Ford, CNBC's Pippa Stevens reports.
That's it! Have a great weekend.
- Benji
Ps. I grew a thing! This is a radish. Its shape is perfect.
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