Hello Insiders, and welcome to a new week of energy news, let’s take a look at some trending topics. Last week the US government came one step closer at making a historic change to its energy policy while some oil companies reported more negative news. We will take a look at this week’s top energy headlines you should know.
A bill to repeal the U.S. ban on oil exports gained momentum on Thursday, when it passed a House of Representatives subcommittee, an initial step to overturn the 40-year-old trade restriction in the full chamber.
The House Energy and Power subcommittee passed the bill by a voice vote. The legislation, sponsored by Republican Representative Joe Barton of Texas, is expected to go to a vote by the full Energy and Commerce committee next week…(Read more)
Oklahoma-based oil driller Continental Resources said Tuesday it will lessen its 2015 capital spending plan by as much as $350 million to ensure income in the midst of falling oil prices. The company that is the largest leaseholder in the Bakken Shale said it is lessening the number of rigs it works there from 10 to eight, and will concede some well fruition.
In reporting second-quarter income a month ago, the oil firm said its capital spending was inclining beneath the $2.7 billion it had planned for the year…(Read more)
Many U.S. oil and gas firms could arrive under economic stress in the approaching months as hedging security starts to end. A lot of companies had locked in higher prices for their oil sales a year ago; enabling all of them a degree of safety as oil rates collapsed over the 2nd half of 2014. A minority of them hedged most of their production. However, profits dropped together with the oil price. Even now, with certain protection, the great majority of organizations, apart from a small group, has not overlooked debt paybacks and has remained away from personal bankruptcy.
That may be an extremely tricky task to pull off as increasingly more hedges are expiring, leaving oil firms subjected to painfully low oil prices. “A wide range of these types of smaller guys who had poor balance sheets possess very good hedge books via full-year 2015,” Andrew Byrne, an analyst with IHS stated to the Houston Chronicle. “You cannot stipulate that regarding 2016.” (Read more)
Universities and colleges that need to create an impression of environmental change by slicing off ventures with oil & gas organizations may lose a considerable measure of funding. To advance less utilization of oil, gas and coal, advocates of alternative energy have requested of higher education institutions to quit putting resources into those sectors. However, a new report supported by the Independent Petroleum Association of America (IPAA) found that schools would lose millions in venture returns in the event that they disregarded fossil fuel businesses…(Read more)