Bulgaria has picked Royal Dutch Shell to carry out deepwater oil and gas exploration off its Black Sea coast and plans to sign a contract by the end of October, hoping the project will help reduce its reliance on imports from Russia.
Crude oil prices are under pressure again as global growth fears seem to outweigh oil production cutbacks. Weak industrial profits in China and the International Monetary potentially lowering its growth forecast.
Another 6.2% drop in the Shanghai composite helped drive oil and industrial metals to a six-year low, and only seemed to slow after China pumped 120 billion yuan worth of seven-day reverse repurchase agreements, or reverse repos, which are a short-term loans to commercial lenders in the money market.
Many oil companies had trimmed their budgets heading into 2015 to deal with lower oil prices. But the rebound in April and May to $60 per barrel from the mid-$40s suggested that the severe drop was merely temporary.
Capitalizing on the panicked sell-off in junior oil and gas stocks may prove to be a smart move now as oil prices have recovered some 50 percent since crashing to $42/barrel WTIC in March, whereas many juniors still trade at relatively low levels.
Oil and natural gas producer Chevron Corp reported a better-than-expected quarterly profit on Friday as cost cuts and strong refining margins helped offset the impact of lower oil prices sending shares up in early trading.
As we come to the end of 2013, it’s a good time to reflect on some of the biggest resources stories of the year. One that immediately comes to mind is the U.S. energy resurgence and its tremendous effect on oil and gas.