• 4 minutes Mueller Report Brings Into Focus Obama's Attempted Coup Against Trump
  • 7 minutes Countries with the most oil and where they're selling it
  • 10 minutes Stack gas analyzers
  • 13 minutes What Would Happen If the World Ran Out of Crude Oil?
  • 13 hours Trudeau Faces a New Foe as Conservatives Retake Power in Alberta
  • 2 hours Ecoside
  • 10 hours Oil at $40
  • 1 hour Japan’s Deflation Mindset Could Be Contagious
  • 2 days Welcome To The Club: Apple In Talks With Potential Suppliers Of Sensors For Self-Driving Cars
  • 16 hours Not Just Nuke: Cheap Solar Panels Power Consumer Appliance Boom In North Korea
  • 4 hours US Military Spend at least $81 Billion Protecting OPEC Persian Gulf Oil Shipping Lanes (16% DoD Budget)
  • 16 hours Haaretz article series _ Saudi Arabia: A Kingdom in Turmoil | Part 1 - Oil Empire
  • 2 days Guaido and the Conoco Award
  • 6 hours Mueller Report Brings Into Focus Trump's Attempts to Interfere in the Special Counsel Investigation
  • 11 hours Gas Flaring
  • 11 hours Negative Gas Prices in the Permian
  • 2 days Trump Torpedos Oil Pipeline Haters

Oil Majors Face Long-Term Challenges

It is quarterly earnings season and the latest figures are in. The world’s major oil companies posted mixed results. Some were good, some were bad, some showed signs of short-term optimism, but several have once again hinted at some worrying underlying trends that could play out over the long-term.

First, BP (NYSE: BP) saw its profits increase by more than 65 percent from a year earlier, a highly impressive number. The British oil giant posted over $3.37 billion in second quarter profits, up from $2.04 billion in the second quarter of 2013. The gains came largely from its 19.75 percent stake in the Russian oil company Rosneft, which is owned by the state but is the largest publicly traded oil firm in the world by production.

While BP’s assets in Russia paid off over the past year, Rosneft is suddenly in the crosshairs of the western world, with the United States and the European Union enacting strong sanctions targeting Rosneft’s access to long-term finance as well as high-tech equipment needed for offshore drilling. Rosneft’s stock price dropped after the sanctions were announced in late July, and while its production may not be affected in the short-term, it may face difficulty acquiring technology that could block investment in new projects, thus cutting into the company’s long-term production capability.

“In Russia, recent geopolitical events have continued to create levels of uncertainty,” BP’s CEO Bob…




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