Oil War Truce Timeline Piques Interest
Market conditions continued to deteriorate throughout the oil and gas industry during the past week. Below is a review of the most-viewed articles on Rigzone during the period somehow tied to the downstream sector.
Many heady questions no doubt are on people’s minds these days. When will researchers develop an effective vaccine against the coronavirus? When will oil prices go back up high enough to help the industry recover? When will Saudi Arabia and Russia work out a production deal to help stabilize the global oil market? The latter question applies to the title of the above Bloomberg article, which cites previous Saudi Arabia-led price wars as evidence to suggest the fallout from the current dispute might be particularly painful.
On the first trading day after a dismal week in which oil futures shed approximately one-quarter of their value, prices fell by an additional six-plus percent. As this Bloomberg article notes, gasoline prices fared poorly as well. The news agency noted the oil market is bearing the brunt of government action to counter the COVID-19 pandemic’s spread as well as the Saudi-Russian oil price war.
Oil and gas companies are exploring ways to cope with rapidly deteriorating market conditions, and supermajor ExxonMobil is no exception. In this article from Tuesday, Rigzone’s Andreas Exarhaeus writes that ExxonMobil is examining its options to significantly cut capital and operating expenses in the near term. In a company statement, ExxonMobil CEO Darren Woods noted the cost-cutting plans will be unveiled when they have been finalized.
Tied to the price of crude oil, the price of liquefied natural gas (LNG) has become considerably less attractive to prospective developers of nearly 20 new LNG export terminals in various countries, reports Bloomberg. According to the news service, the crash in LNG spot prices is hurting the economics of the projects at a time when available capital to finance them is becoming scarcer. In addition, it points out the fate of some projects had already been questionable before the recent market challenges emerged.
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