• 6 minutes Corporations Are Buying More Renewables Than Ever
  • 17 minutes WTI @ 67.50, charts show $62.50 next
  • 23 minutes Starvation, horror in Venezuela
  • 5 hours Permian already crested the productivity bell curve - downward now to Tier 2 geological locations
  • 1 day Desperate Call or... Erdogan Says Turkey Will Boycott U.S. Electronics
  • 2 days The Discount Airline Model Is Coming for Europe’s Railways
  • 1 day Renewable Energy Could "Effectively Be Free" by 2030
  • 1 day Saudi Fund Wants to Take Tesla Private?
  • 2 days Venezuela set to raise gasoline prices to international levels.
  • 4 hours China goes against US natural gas
  • 2 days Mike Shellman's musings on "Cartoon of the Week"
  • 5 hours Hey Oil Bulls - How Long Till Increasing Oil Prices and Strengthening Dollar Start Killing Demand in Developing Countries?
  • 2 days Pakistan: "Heart" Of Terrorism and Global Threat
  • 2 days Are Trump's steel tariffs working? Seems they are!
  • 3 days Scottish Battery ‘Breakthrough’ Could Charge Electric Cars In Seconds
  • 22 hours Why hydrogen economics does not work
Alt Text

Goldman: Trade War Won't Crash Oil Prices

In spite of the impact…

Alt Text

Philippines Cracks Down On Fuel Pirates

Though fuel smuggling in Southeast…

Alt Text

All-Time Low Spare Capacity Could Send Oil To $150

Many oil markets watchers have…

Nick Cunningham

Nick Cunningham

Nick Cunningham is a freelance writer on oil and gas, renewable energy, climate change, energy policy and geopolitics. He is based in Pittsburgh, PA.

More Info

Trending Discussions

Oil Majors Have Seen Debt Double And Spending Fall 45%

Friday, May 27, 2016

In the latest edition of the Numbers Report, we’ll take a look at some of the most interesting figures put out this week in the energy sector. Each week we’ll dig into some data and provide a bit of explanation on what drives the numbers.

Let’s take a look.

1. Rising debt for oil majors

(Click to enlarge)

- The oil majors are taking on ever more volumes of debt in order to finance their spending programs and maintain generous dividend policies. 
- The six largest oil companies have issued $37 billion in new debt so far this year, double the levels from 2014 when oil prices were at their highs. 
- Generous interest rate policies from central banks have kept the appetite for top-quality debt high, meaning that the oil majors can borrow cheaply. 
- Borrowing costs are at their lowest level in more than a year as oil prices have rebounded from lows. BP (NYSE: BP) issued $1.25 billion in new debt in April with yields of only 3.12 percent. Shell (NYSE: RDS.A) offered $1.5 billion in fresh debt at a 1.99 percent yield. 
- Still, with cash flows not high enough to cover capex and dividends, net debt at all of the oil majors is rising.

2. New discoveries at 64-year low

(Click to enlarge)

- The global oil industry only discovered 12.1 billion barrels of new oil in 2015, the lowest total since 1952. 
- Part of the terrible result last…

To read the full article

Please sign up and become a premium OilPrice.com member to gain access to read the full article.

RegisterLogin

Trending Discussions





Oilprice - The No. 1 Source for Oil & Energy News