Oil industry facing (c)rude awakening

The game is up: Oil and gas companies can no longer mask their financial frailty

Oil industry facing (c)rude awakeningThe decline in oil demand accelerated by Covid-19 may be a sign of the future. Forty publicly-traded U.S. oil producers wrote down a collective $48 billion worth of the value of their assets in the first quarter of 2020, the U.S. Energy Information Administration reported. Quoting Deloitte, Oilprice.com points out that the collapse in crude…

Middle East oil exporters facing tough economic times

Despite the recent unprecedented output cuts by oil-producing countries, crude continues to trade around $40 a barrel

Middle East oil exporters facing tough economic timesGlobal economies are in distress. In the United States, the world’s largest economy, jobless claims rose last week for the first time since March. With measures to contain the COVID-19 virus keeping drivers off the road, recent data shows gasoline demand edging even lower. In South Korea, a large crude oil consumer, the economy is…

Crude oil marketplace bubble can’t last

Iran, Venezuela and Libya have virtually been forced out of production. But that hasn’t made the lives of other producers easier

Crude oil marketplace bubble can’t lastAn uneven playing field exists in the crude oil marketplace. Two major producers, Iran and Venezuela, face sanctions on their oil sales from the United States. Meanwhile, Libya is in the midst of civil strife. These circumstances mean a considerable volume of oil isn’t available to the markets. Yet the Organization of Petroleum Exporting Countries…

China the big winner in world oil price calamity

The Chinese have stockpiled huge reserves of low-priced oil, giving them significant geopolitical leverage over Russia and Saudi Arabia

China the big winner in world oil price calamityWith the major stakeholders – Saudi Arabia, Russia and the United States – emerging badly bruised from the last round of the crude oil price war, a new world order is set to emerge. The cost of the battle has been immense to all three. In April, as the battle erupted, the value of Saudi…

Brakes applied to worldwide oil, gas exploration

The long-term view is frightening. With long gestation periods, new oil and gas projects may not get online when needed

Brakes applied to worldwide oil, gas explorationInternational oil and gas exploration and production are in the doldrums and won’t likely rebound any time soon. Canada has curtailed its crude output by one million barrels per day (bpd). The country’s active oil and gas rig count had fallen to an all-time low of 17 in early June, Baker Hughes reported. That was…

Oil-rich Saudis squeezed by Trump

Current oil production cuts can’t continue for long or the Saudis, and others, won’t balance their budgets

Oil-rich Saudis squeezed by TrumpThe U.S. is putting extreme pressure on the major oil producers, Saudi Arabia in particular, to cut output, firm up crude markets and ensure the continuity of the U.S. shale revolution. But on the other hand, the administration of United States President Donald Trump doesn’t want oil prices to go much higher. In an election…

Oil market finally showing signs of life again

President Donald Trump’s efforts at salvaging the United States shale oil sector seem to be paying off

Oil market finally showing signs of life againSaudi Arabia, Russia and their allies have opted to roll over crude oil output cuts for another month – until the end of July. Markets have somewhat firmed up. Oil prices have inched up. And President Donald Trump’s efforts at salvaging the United States shale oil sector seem to be paying off. The U.S. president…

Energy industry investment cools dramatically

The oil price crash of recent weeks has triggered a wave of huge exploration and production capital expenditure cuts

Energy industry investment cools dramaticallyLack of appetite to invest in the energy sector is leading the world into a supply crunch, says the International Energy Agency (IEA) in its recently unveiled World Energy Investment (WEI) 2020 report. The COVID-19 pandemic is having widespread and often dramatic effects on investments in the energy sector. At the start of the year,…

Oil market resurgence sustained by hope

Will producers be tempted by a rise in crude oil prices to disregard quotas and voluntary production cuts?

Oil market resurgence sustained by hopeOil markets have taken some respite. But is this rally sustainable? Prices were surging until reports that Russia might back off on oil production cuts spooked the market. But even with that uncertainty, we’ve seen a complete turnaround in the markets. Just a month ago, crude oil markets faced a bloodbath. Since then, demand has…