Major oil companies reduced investment again in 2016 1/4/2016
Major oil companies reduced investment again in 2016
1/4/2016 0 Comments
With falling oil prices to their lowest levels in a ten-year-old facing the world's major producers of oil and gas the longest period of low investment in decades.
It is expected to be used by companies to borrow more to keep the dividends that investors demand levels.
At about $ 37 a barrel, oil prices are far below the $ 60 a level that you need companies such as Total and Statoil, and BP to balance their books, which already saw a decline sharply over eighteen last month.
and find international oil companies feel compelled again to cut spending and sell assets, reduce jobs and postpone projects with showing no signs of the recovery of oil from the landing.
It was announced by producers in the United States, including Chevron and ConocoPhillips plans to cut their budgets in 2016 about a quarter. Announced Royal Dutch Shell also for new spending cuts worth five billion dollars if ago its deal planned to acquire [BG crop ahead.
According Resthad Energy estimates Consulting, based in Oslo that the expected decline in global investments in the oil and gas to $ 522 billion in 2016 registered the lowest level in six years after it fell 22 percent to $ 595 billion in 2015.
He said Baorner Tunhujn vice president of oil and gas markets have Resthad Energy, said he "would be the first time since the fall in oil prices in 1986, we see lower investments for two years Mtaliyn.
"The fall in oil prices to a loss of corporate revenues of billions of dollars despite the fact that strong earnings from refining activities eased much of the impact of such a strike.
With the pressures on the growth of the self-production of oil and gas, companies could be heading to the acquisition of competitors with budgets at least as flexible as in the acquisition of Shell planned to Ba.ja.