Economics ///

Greater Houston Partnership says city’s economy “eerily similar” to 1980s bust days

“The situation Houston faces today is eerily similar to what it faced after the 1980s bust -- an oversaturated real estate market, a bleak outlook for oil and gas, and the need for innovation to drive the economy forward,” the Greater Houston Partnership said in a report Thursday.

Petrobras plans $34 billion in dividends by 2024 as debt shrinks

Petrobras plans to pay its shareholders $34 billion in dividends over the next five years as it cuts debt and sells assets to shore up its finances, CEO Roberto Castello Branco said.

Canada rail strike ends, restoring shipments Wednesday morning

A week-long rail strike that halted shipments of oil and other goods across Canada, threatening to take a multibillion-dollar bite out of the economy, is over.

Months of unpaid bills in Mexico’s oil patch add to Pemex woes

Companies that help keep Mexico’s faltering oil wells operating are waiting months to get paid and the debts are building up, complicating efforts to revive an industry whose production has plunged by half since 2004.

Has a global LNG glut forced the U.S. to become the swing producer?

A global glut of natural gas has gotten so massive that U.S. exporters could soon face their worst-case scenario: Halting shipments to get supply and demand back in balance.

Reduced access to credit making life harder for shale operators

Banks have begun trimming back the credit lines of America’s shale producers, further undercutting a beleaguered industry that’s been struggling to rebuild investor confidence.

Ohio’s shale energy industry attracts nearly $78 billion in investment since 2011

Total investment in Ohio’s resource rich shale energy sector has reached $78 billion since tracking began in 2011, according to a Cleveland State University (CSU) study.

Canadian heavy crude weakens as rail strike halts shipments

The price of Canadian heavy crude weakened Tuesday as a worker strike at the nation’s largest railway curbed oil shipments, exacerbating a supply glut that’s crippled Canada’s oil industry.

Exxon’s credit rating outlook goes negative on ‘substantial’ cash burn

The oil major’s credit metrics will probably weaken over the next few years as it pursues a rebuild of its upstream portfolio, as well as new chemical facilities and refinery upgrades, Moody’s said in a statement Tuesday.

Aramco valuation falls short of crown prince’s $2 trillion target

Saudi Arabia put a valuation on state-owned oil giant Aramco of between $1.6 trillion and $1.71 trillion, well below the $2 trillion target sought by Crown Prince Mohammed bin Salman since he first mooted an initial public offering in 2016.

OPEC still sees oil surplus in early 2020 as meeting approaches

OPEC signaled that oil markets remain on course for a surplus in early 2020, even as delegates said the organization and its allies probably won’t step up efforts to remove the excess when they meet next month.

Billionaires poised to buy U.S. oil and gas assets at distressed prices

Dallas Cowboys owner Jerry Jones is among the billionaires circling the distressed U.S. oil and gas patch, looking to pick up assets on the cheap at a time when the state of the industry is scaring off other investors.

Oxy looks to sell as much as $15 billion in assets by mid-2020

Oxy is trading at its lowest in 14 years as investors balked at the amount of borrowing needed to complete the Anadarko deal, and then questioned whether Oxy can produce enough oil to manage the debt burden.

IEA predicts global oil demand will level off around 2030

While the current growth rate of 1 MMbpd -- or about 1% -- will hold for the next five years, it will ebb to just 100,000 bpd in the 2030s, the agency said.

Oil firms facing a credit crunch as lender patience wears thin

About $83 billion of outstanding debt issued by explorer and producer companies in the U.S. and Canada is yielding at least 10%, the typical threshold for distressed debt.

Chesapeake Energy’s CEO voices confidence in company’s operating and capital plans

Chesapeake’s stock has tumbled as much as 43% in recent weeks, following a third quarter earnings report that raised doubts about the company’s ability to continue as a going concern.

OPEC+ risks sub-$50 oil without deeper supply cuts

“The prospect of oversupply looms over the market in 2020,” said Martijn Rats, global oil strategist at Morgan Stanley. “Either OPEC deepens its cuts, or prices will fall to about $45/bbl, and force a slowdown in U.S. shale that balances the market.”

ADNOC to launch futures exchange for its Murban crude

Murban pricing will move from a retroactive official selling price to market-driven, forward pricing using a Murban futures contract as its price marker.

Aramco sees oil demand falling after 2040, per IPO prospectus

Global oil demand may peak within the next 20 years, according to an assessment included in the prospectus for Saudi Aramco’s initial public offering, suggesting views are slowly changing in the kingdom where officials long dismissed the notion as overblown.

Petrobras faults high price, regulatory uncertainties for auction failure

Petrobras CEO Roberto Castello Branco said the reason most major oil companies didn’t show up for Brazil’s massive auction was because of the astronomic price tag and regulatory uncertainties.