December 1, 2020 Read More →

Pandemic deepened oil and gas woes, but didn’t cause them

Marketplace:

There is a lot going on in the world of oil and gas right now. OPEC delayed an announcement about whether to continue to curb output for the next quarter. And ExxonMobil said it is slashing its capital expenditures and could write off as much as $20 billion of investments in natural gas. All that after The Wall Street Journal reported that Exxon Mobil had lowered its outlook on oil prices for the next decade.

Oh, and demand is getting crushed by a pandemic and the industry has to prepare for a political transition.

“The industry is cash-starved, with declining assets — a maturing industry with a negative outlook,” said Tom Sanzillo, director of finance at the Institute for Energy Economics and Financial Analysis. 

[Andy Uhler]

 

More: OPEC delays and spending cuts: Uncertainty abounds in the oil and gas industry

Posted in: IEEFA In the News

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