“The banks have pulled away from financing,” said Scott Sheffield, chief executive of Pioneer Natural Resources, a major Texas oil and gas producer. The flow of capital from Wall Street has slowed to a trickle after a decade in which investors poured over $1.4 trillion into North American oil and gas producers through stock and bond issues and loans, according to the research firm Dealogic. oil output has nearly recovered to prepandemic days as companies pull crude out of wells they drilled years ago.Īnother reason for the pullback from drilling is that banks and investors are reluctant to put more money into the oil and gas business. Still, aside from recent interruptions in Gulf of Mexico production from Hurricane Ida, U.S. Largely because of the industry’s caution, the nationwide count of rigs producing oil is 528, roughly half its 2019 peak. Prices were in the same territory in the middle of 2018 and are still some ways from the $100-a-barrel level they topped as recently as 2014. Oil prices may seem high relative to 2020, but they are not stratospheric, executives said. Since the pandemic began, the oil industry has laid off tens of thousands of workers, and dozens of companies have gone bankrupt or loaded up on debt. Oil executives contend that while prices may seem high, there is no guarantee that they will stay elevated, especially if the global economy weakens because coronavirus cases begin to increase again. Biden has said he plans to run for a second term, but at 79, his age has become an uncomfortable issue. Biden’s drive to buttress democracy at home and abroad has taken on more urgency by the persistent power of China, Russia and former President Donald J. Diplomatic Limits : OPEC’s decision to curb oil production has exposed the failure of President Biden’s fist-bump diplomacy with the crown prince of Saudi Arabia.Storyteller in Chief: President Biden has been unable to break himself of the habit of spinning embellished narratives to weave a political identity.The Biden Presidency With midterm elections approaching, here’s where President Biden stands. “We continue to speak to international partners, including OPEC, on the importance of competitive markets and setting prices and doing more to support the recovery,” Jen Psaki, Mr. That helps explain why the Biden administration has been pressing the Organization of the Petroleum Exporting Countries to produce more oil. Goldman Sachs analysts say energy supplies could further tighten, potentially raising oil prices by $10 before the end of the year. And while use of renewable energy and electric cars is growing, it remains too small to meaningfully offset the pain of higher gasoline and natural gas prices. Many Americans, especially lower-income families, are vulnerable to big swings in oil and gas prices. That would present a political problem for Mr. If the drillers don’t increase production, fuel prices could stay high and even rise. He was recalling a time of so little demand and storage capacity that some traders paid buyers to take oil off their hands. “Everyone is very wary since it was just 15 or 16 months ago we had negative-$30-a-barrel oil prices,” said Kirk Edwards, president of Latigo Petroleum, which has interests in 2,000 oil and natural gas wells in Texas and Oklahoma. Not only have banks and investors lost money in the boom-bust cycles that whipsawed the sector over the past decade, but many also say they are prepared to pare their exposure to fossil fuels to meet the commitments they have made to fight climate change. Producers are still chafing at memories of the price crash early in the pandemic. oil price jumped nearly 3 percent on Monday, to about $78 a barrel, a seven-year high, after OPEC and its allies on Monday declined to significantly increase supply. energy executives and the Wall Street bankers and investors who finance them are not doing anything to bolster production to levels that could bring down prices. He is doing so as he simultaneously pushes Congress to address climate change by moving the country away from fossil fuels toward renewable energy and electric cars. The situation in the United States is not quite as dire, but oil and gasoline prices are high enough that President Biden has been calling on foreign producers to crank up supply. In China, Britain and elsewhere, fuel shortages and panic buying have led to blackouts and long lines at filling stations. The energy system is suddenly in crisis around the world as the cost of oil, natural gas and coal has climbed rapidly in recent months. Natural gas prices have shot up more than 150 percent over the same time, threatening to raise prices of food, chemicals, plastic goods and heat this winter. HOUSTON - Americans are spending a dollar more for a gallon of gasoline than they were a year ago.
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