• 4 minutes Why Trump Is Right to Re-Open the Economy
  • 7 minutes Did Trump start the oil price war?
  • 11 minutes Covid-19 logarithmic growth
  • 15 minutes Charts of COVID-19 Fatality Rate by Age and Sex
  • 18 minutes China Takes Axe To Alternative Energy Funding, Slashing Subsidies For Solar And Wind
  • 1 hour America’s Corona Tsar, Andrew Fauci, Concedes Covid-19 May Be Just a Bad Flu With a Fatality Rate of 0.1%
  • 45 mins Saudi Arabia Can't Endure $30 Oil For Long
  • 18 mins Russia's Rosneft Oil Company announces termination of its activity in Venezuela
  • 3 hours TRUMP pushing Hydroxychloroquine + Zpak therapy forward despite FDA conservative approach. As he reasons, "What have we got to lose ?"
  • 30 mins KSA taking Missiles from ?
  • 6 hours Oxford Epidemiologist: Here’s Why That Covid-19 Doomsday Model Is Likely Way Off
  • 3 mins Where's the storage?
  • 58 mins Western Canadian Select selling for $6.48 bbl. Enbridge charges between $7 to $9 bbl to ship to the GOM refineries.
  • 2 hours China extracts record amount of natural gas from Gas Hydrates in South China Sea
  • 3 hours Wait till America opens their Q1 401k Investment Statements and see they have lost 35% of their retirement savings. They can blame the Authoritarian Chinese Communist Party..
  • 5 hours There are 4 major mfg of hydroxychloroquine in the world. China, Germany, India and Israel. Germany and India are hoarding production and blocked exports to the United States. China not shipping any , don't know their policy.
  • 7 hours Hillary Clinton tweeted a sick Covid joke just to attack Trump
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