![]() By acquiring Concho, it will become a major player in the world’s most lucrative shale field, the Permian Basin, which straddles West Texas and New Mexico. The company is a major producer in the Bakken shale field of North Dakota and the Eagle Ford shale field in South Texas. Nevertheless, ConocoPhillips’s stock price has dropped by roughly half so far this year. More than 100,000 American oil workers have lost their jobs in recent months.ĬonocoPhillips, the largest American independent oil company, has been something of an outlier, recently raising its dividend and buying back shares. Rig rental rates are down roughly 10 percent, pressuring the companies that do the field work. Oil companies are hoarding cash and renegotiating contracts with service companies that drill and complete wells. The oil and gas rig count has dropped by 569 since last fall, to only 282 operating across the country. They have adapted to low oil and gas prices by slashing investments by 30 percent or more. ![]() While those companies have had limited success so far, American companies have for the most part stuck with their traditional businesses. But a few rules of thumb can stave off some nasty surprises.Įuropean oil companies have already begun pivoting away from oil and gas, plotting investments in renewable energy like wind and solar to attract new investors. Tips for Investors: When you invest and where matters for taxes.May I Speak to a Human?: Younger investors who are navigating market volatility and trying to save for retirement are finding that digital investment platforms lack the personal touch.Value and Growth Stocks: Eight tech giants are no longer “pure growth” stocks, while Exxon and Chevron are, according to a new study.They’re also potentially warning of a recession. Bond Trading: Wild swings in the Treasury market are unlike anything many investors have ever seen.Our Coverage of the Investment World The decline of the stock and bond markets this year has been painful, and it remains difficult to predict what is in store for the future. becomes president and Democrats take control of the Senate. Small companies fear a crackdown on methane leaks and tightening regulations, especially if former Vice President Joseph R. Oil companies are facing daunting uncertainties, particularly as concerns over climate change mount and governments impose tougher regulations to reduce greenhouse gas emissions caused by the burning of fossil fuels. More failures could come in the next two years as companies are required to repay tens of billions of dollars in debt. Among the casualties was Chesapeake Energy, a shale pioneer based in Oklahoma City. More than 50 North American oil and gas companies with debts totaling more than $50 billion have sought bankruptcy protection this year. Most people don’t think the oil price will recover for a couple of years.” “Companies are trying to hunker down and weather the storm. “There’s a lot more red ink than there is black gold,” said Michael Lynch, president of Strategic Energy and Economic Research, who periodically advises the Organization of the Petroleum Exporting Countries. Few experts expect a full recovery of oil demand before 2022, and some analysts have gone so far as to declare that oil demand might have peaked in 2019 and could slide in the years to come as the popularity of electric cars grows. The big problem is that the fortunes of oil companies are fundamentally tied to oil and natural gas prices, which remain stubbornly low. The share prices of ConocoPhillips and Concho closed down by about 3 percent on Monday. Just last month Devon Energy said it would buy WPX Energy for $2.6 billion.īut many investors are not sure such deal making will be enough to protect the industry from a sharp decline. The acquisition, days after the completion of Chevron’s takeover of Noble Energy, would create one of the country’s biggest shale drillers and signals an accelerating industry consolidation as oil prices languish around $40 a barrel, just above the levels many businesses need to break even. ConocoPhillips announced on Monday that it was acquiring Concho Resources for $9.7 billion, the biggest deal in the industry since oil prices collapsed in March. ![]() Now some are seeking out merger and acquisition targets to reduce costs. Most companies have cut back drilling, laid off workers and written off assets. ![]() HOUSTON - The once mighty oil and gas industry is flailing, desperately trying to survive a pandemic that has sharply reduced demand for its products. ![]()
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