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Economy / Finance

Article, Economy / Finance, Government and Politics, International

It’s back to normal for oil after Doha distraction

April 18, 2016

The world oil market can return to normal, at least the normal that has characterized it for the last couple of years, now that a hyped-up meeting of major oil producers has ended without striking a deal to freeze production and bolster prices. The mere hint that Saudi Arabia, Russia and other major oil producers would follow through on a commitment to limit oil output to January levels had contributed substantially to a 50% rebound in prices for the commodity since February, when the goal was announced. But even as delegates from the producing nations arrived in Doha over the weekend, expectations were widespread that the unusual meeting would end in stalemate, as it did on Sunday. (Read more)

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by Bill Loveless
Article, Economy / Finance, Energy, Utilities and Providers

Nat gas prices hit by surplus, mild winter

April 17, 2016

With the warmest winter on record this year and continued high levels of natural gas production, the U.S. ended the season with more gas stored than ever before. By producing so much gas and putting so much away, the industry is likely to face continued low prices for the commodity, not encouraging news for the sector. But the combination of factors also means more opportunities to sell gas to power plants, the U.S. Energy Information Administration says in a new report. (Read more)

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by Bill Loveless
Article, Consumer, Economy / Finance

College gift gears grads for oil’s ups, downs

April 13, 2016

The petroleum industry has historically been a cyclical one, with swings in prices periodically spelling boom and bust for companies and their workforces. But the current slump, which has seen prices fall by more than 60% since June 2014, is one of the worst ever for the sector, making job prospects that much less certain, especially for those just entering the field. With that in mind, the co-founders of a Houston oil and gas management-services company recently announced a donation of $12 million to their alma mater, Texas A&M University, to help students in petroleum engineering better understand the business side of oil and gas production. (Read more)

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by Bill Loveless
Article, Corporations, Economy / Finance, Energy, Organizations

Clean energy guru touts the power of diversity

April 10, 2016

For the makers of solar, wind and other forms of clean energy, the future looks bright, with all-time-high investments and expanding markets throughout the world. That was evident at a conference in New York held by Bloomberg New Energy Finance, where more than 1,000 producers, investors and others involved in cleaner alternatives to fossil fuels met to discuss the progress that has taken place so far and the opportunities that continue to unfold. No one is more bullish about the industry than Michael Liebreich, the chairman of BNEF, who founded the energy information and research company in 2004 and sold it to the media giant Bloomberg in 2009. (Read more)

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by Bill Loveless
Article, Corporations, Economy / Finance

Loveless: $6.8B Pepco-Exelon deal took a toll

April 4, 2016

Having just completed a $6.8 billion acquisition, Exelon CEO Chris Crane is as convinced as ever that consolidation is critical to electric power companies in the U.S. But he’s not in a hurry to make another deal. “If you look at the last few (utility) deals since we announced ours, the premiums are getting very high. So you have to be very prudent and diligent about further acquisitions in this environment,” Crane said Monday. “So, we’ll just focus on what we have right now.” What Crane has now is a new addition to Exelon, Pepco Holdings, which provides electricity to 2.2 million customers in Maryland, Delaware, New Jersey and the District of Columbia. (Read more)

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by Bill Loveless
Article, Economy / Finance

A bottom for oil prices? Producers seek signs

March 16, 2016

The recent oil price rally raised hopes among producers that the worst may be over when it comes to a slump that has persisted for 14 months now. Even the venerable International Energy Agency suggested recently that oil prices may be on a rebound after having fallen below $30 a barrel earlier this year. “For prices, there may be a light at the end of what has been a long, dark tunnel,” the IEA said in its March oil report. “But we cannot be precisely sure when in 2017 the oil market will achieve the much-desired balance.” (Read more)

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by Bill Loveless
Article, Consumer, Economy / Finance, Energy, Utilities and Providers, Weather

Winter of discontent for oil and gas producers

March 13, 2016

U.S. consumers saved substantially on their heating bills this winter, as the country enjoyed its warmest winter ever. But with the first day of spring just a few days away, not everyone is rejoicing. “If you’re a consumer, it’s great. But if you’re the guy responsible for producing the stuff, it’s not. This is a rough time,” said Porter Bennett, a longtime analyst of U.S. energy markets. In fact, Bennett’s firm, Ponderosa Energy, just put out a report whose title sums up the situation confronting oil and gas producers: “Winter of Discontent”. (Read more)

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by Bill Loveless
Article, Consumer, Economy / Finance, Energy, Government and Politics, Technology

Clean-energy effort avoids D.C. dystopia

March 7, 2016

Democrats and Republicans agree on little when it comes to government policy, including how Washington should influence the ways that Americans produce and use energy. But one exception is a relatively small program at the U.S. Department of Energy that invests in early-stage technologies with the potential to provide new forms of low- or no-carbon energy efficiently, economically and satisfactorily. Established with bipartisan support in Congress in 2007 and first funded two years later, the Advanced Research Projects Agency-Energy has awarded $1.3 billion to more than 475 projects formed by teams from academia, private industry and national laboratories with ideas for technologies in such fields as biofuels, energy storage, superconducting wires, and solar and wind systems.

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by Bill Loveless
Article, Economy / Finance, Energy, Government and Politics

Oil, gas production ramping up in the Gulf: Here’s why

March 2, 2016

The U.S. government will open nearly 45 million acres in the Gulf of Mexico to oil and natural gas development later this month, at a time when low prices are forcing producers to cut back sharply on their exploration budgets. But the industry’s troubles have had little impact so far on oil output in the region. In fact, unlike onshore production, which has been tapering off as oil prices decline, Gulf of Mexico production is on its way to setting a record in 2017. (Read more)

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by Bill Loveless
Article, Economy / Finance

Lending limits may spur oil industry shakeout

February 14, 2016

A semiannual bank review of credit lines for U.S. oil and natural gas producers may go a long way toward determining whether there will be a shakeout in the industry this year and how extensive it might be. In a new report, Standard & Poor’s Rating Services said it expects the  “borrowing bases” for 45 speculative-grade producers will fall by an average 20%-30% when banks take a fresh look in April, making it difficult for some companies to stay in business. (Read More)

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by Bill Loveless