• 3 minutes Shale Oil Fiasco
  • 7 minutes "Leaked" request by some Democrats that they were asking Nancy to coordinate censure instead of impeachment.
  • 12 minutes Trump's China Strategy: Death By a Thousand Paper Cuts
  • 16 minutes Global Debt Worries. How Will This End?
  • 2 hours Greta named Time Magazine "Person of the Year"
  • 12 mins DUMB IT DOWN-IMPEACHMENT
  • 4 hours Everything you think you know about economics is WRONG!
  • 6 hours americavchina.com
  • 5 hours POTUS Trump signs the HK Bill
  • 7 hours Democrats through impeachment process helped Trump go out of China deal conundrum. Now Trump can safely postpone deal till after November 2020 elections
  • 8 hours WTO is effectively neutered. Trump *already* won the trade war against China and WTO is helpless to intervene
  • 18 hours Winter Storms Hitting Continental US
Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

Recession Risk Poses Major Threat For North American Oil

The U.S.-China trade war and geopolitical flare-ups could threaten the growth of North America’s upstream oil and gas as oil market volatility and the specter of global recession rise, S&P Global Ratings said in a new report this week.

S&P Global Ratings’ report “North America: Rising Recession Risk Adds to Trade, Rate Uncertainty” found that American consumers have so far propped up the world’s biggest economy, but the trade disputes, heightened tension in the Middle East, and slowing global economic growth will weigh on many industrial sectors in the U.S., including the energy sector.

According to S&P Global Ratings, the risk of a recession in the United States beginning over the next 12 months has now increased to 30 percent-35 percent, up by five percentage points compared to the previous quarter.

Geopolitical tensions, especially in the Middle East with the attacks on Saudi oil infrastructure, and trade disputes “are leading to more frequent and intense periods of market volatility,” S&P Global Ratings says.

The rating agency has revised down its outlook on the U.S. upstream oil and gas industry from ‘stable’ in the second quarter to ‘stable-to-negative’ now. S&P Global Ratings’ outlook on the U.S. midstream oil and gas segment—including pipelines and refinery businesses—remains ‘stable’.

The U.S. shale production is indeed slowing down, according to the latest data from the U.S. Energy Information Administration (EIA). The most recent EIA data showed that American oil production fell sharply in July, dipping by 276,000 barrels per day. Moreover, shale producers are now facing financial stress and the prospect of stubbornly low prices.

According to a Moody’s report from June, North American exploration and production (E&P) companies will see their capital efficiency improvements stall this year and next as oil prices stay range-bound. Moody’s study of the 40 largest rated independent E&P companies in North America showed that companies are unlikely to significantly cut debt further because of the prospect of meager earnings and higher shareholder payouts.   

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage



Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play