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Shell

Blog, Oil, Shale

Amid shale revival, don’t forget oil bounty offshore

Given their extensive oil and natural gas capacity and their accessibility, U.S. shale reserves are increasingly the investment of choice for producers. Integrated oil companies like Chevron are making that clear as they plan to spend more on areas like the Permian Basin in Texas and New Mexico. But don’t rule out a comeback for oil buried deep beneath offshore waters. A new report by the consulting firm Wood Mackenzie says the deepwater industry is emerging leaner and more cost-competitive from the slump in oil prices that began in 2014, especially in the U.S. Gulf of Mexico. On average, the costs of deepwater projects have fallen by just over 20% since 2014, the Scotland-based consultancy says. Assuming a 15% rate of return for producers, 5 billion barrels of deepwater reserves now break even at $50 per barrel or less. By…

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Article, Consumer, Corporations, Economy / Finance, Energy

Oil companies slip in new list of leading energy firms

Integrated oil majors like ExxonMobil, Chevron and Shell once dominated the standings of the world’s leading energy companies, with assets, revenue and earnings far outpacing just about everyone else. That’s not the case anymore, as companies that sell electricity and refine crude oil into fuel are gaining ground, as seen in a new survey by S&P Global Platts, a provider of energy information and benchmark prices. (Read more)

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Article, Consumer, Corporations, Economy / Finance, Energy

Oil sector may see spurt in M&A activity

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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