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Economy / Finance

Article, Economy / Finance, Government and Politics

8 states take a big budget hit due to falling oil prices

February 7, 2016

It’s no surprise that the slump in oil prices, now 20 months old, is taking its toll on states that are particularly dependent on oil production to balance their budgets. But the impact is becoming clearer than ever, especially when you factor in steep declines in natural gas and coal prices over the same period. A new report from the Rockefeller Institute of Government at the State University of New York suggests growing trouble for the eight states where oil, gas and mining account for 10% or more of gross domestic product. (Read More)

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

Oil sector may see spurt in M&A activity

February 1, 2016

Shareholders for the British-based BG Group paved the way for the biggest energy merger in more than five years the other day when they approved the acquisition of their oil and gas company by Royal Dutch Shell for $50 billion. When Shell announced plans for the takeover last April, the proposed deal was widely seen as a possible harbinger of mergers and acquisitions across the industry. But aside from an earlier and still pending bid by the oil service provider Halliburton to buy one of its rivals, Baker Hughes, for $35 billion, no such trend has emerged, despite the plunge in oil prices that has taken place over the last 18 months and its devastating impact on many companies. (Read More)

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by Bill Loveless
Article, Consumer, Economy / Finance, Policy, Regulations, Utilities and Providers

2016: Another volatile year for energy

January 19, 2016

The year 2016 promises to be an eventful one for energy in the U.S. and nations throughout the world, with more turbulence in oil and natural gas markets, new opportunities for solar, wind and other forms of renewable energy, and increasing challenges for the electric grid. The extraordinary slump in oil and natural gas prices is likely to continue this year, with both good and bad implications, depending on which side of the pump is important to you. For consumers, low prices will mean more savings when they fuel their vehicles and homes. But for oil and gas producers, and the entire industry that supports their operations, low prices will dampen the resurgence of U.S. production and lead to more layoffs, bankruptcies and mergers. How extensive is the toll of the price decline on the U.S. shale revolution? How quickly…

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

‘Worst is over’ on oil plunge, CEO says

January 13, 2016

When it comes to putting the best foot forward in difficult times, Harold Hamm does so as surely as anyone in the U.S. oil industry. Since oil prices began spiraling down last year, the CEO of Continental Resources has predicted a recovery sooner than many analysts would venture, and he’s sticking to that point of view even now as the cost of a barrel of crude has sunk to 12-year lows. “The worst is over, I believe,” Hamm said the other day as oil markets struggled to take account of the escalation in tensions between Saudi Arabia and Iran and turmoil in the Chinese economy. (Read more)

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by Bill Loveless
Article, Consumer, Corporations, Economy / Finance, Energy, Government and Politics, Utilities and Providers

Cheap gas, oil craters: 2015 rocked energy sector

January 3, 2016

The year 2015 has been a tumultuous one for energy throughout the world, including in the U.S. A new era of abundant supplies is emerging here, bringing with it low prices, at least for now. All this comes as the U.S. and other nations take stock of climate change, and the role that producing and using energy plays in the phenomenon. With that in mind, here’s a look back at 10 big developments in energy in the U.S. in 2015. (Read More)

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

Electric execs get charge out of tech possibilities

November 16, 2015

Top executives from investor-owned electric utilities across the U.S. gathered in Hollywood, Fla., last week for the annual financial conference held by their trade association, the Edison Electric Institute. They spent hours meeting with analysts, investment bankers and ratings agencies regarding their utilities’ financial returns and the outlook for capital spending, revenue and earnings. That’s the sort of talk that’s characterized the EEI meeting since it began 50 years ago. (Read more)

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

Cuts in oil industry could get worse

September 8, 2015

The plunge in energy prices has forced companies drilling for oil and natural gas in the U.S. to cut spending substantially and lay off thousands of workers in Texas, North Dakota and other states that depend on the industry. And those companies will likely pull back even more if the banks they rely on for loans tighten their purse strings in anticipation of a slow recovery for oil prices. (Read more)

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by Bill Loveless
Article, Economy / Finance, Energy

Oil woes? Not in North Dakota

August 19, 2015

An earlier version of this story incorrectly stated North Dakota’s recently-set monthly record for natural gas production. The state produced 1.6 billion cubic feet a day in June. North Dakota is holding its own when it comes to producing oil, despite the stubborn slump in oil prices and predictions that the U.S. shale boom is about to fade. (Read more)

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by Bill Loveless
Article, Economy / Finance, Energy

Amid oil downturn, silver lining for shale producers?

August 3, 2015

The slump in oil prices is more than a year old now, with bad news continuing for producers around the world, including those responsible for the shale revolution in the U.S. Just look at second-quarter earnings, which largely show disappointing results again for oil companies and their shareholders. But while there may be no end in sight for the industry’s dilemma, there may be a silver lining for producers, especially those using the downturn to hone drilling techniques, like hydraulic fracturing, to reinforce their output and profits later. (Read More)

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by Bill Loveless