With the collapse in oil prices over the past eighteen months, the major exploration and production companies have been doing everything they can to cut costs. Ultimately, this means the conglomerates have less cash available to pay suppliers, who provide them with essential services and products.
More than 100 energy companies have had their credit ratings put on review for possible downgrade by Moody’s Investor Service.
Shell, Total and Statoil are included in the move as oil prices are expected to recover more slowly than companies expect.
The international community must take concerted action to “choke off” funding to Islamic State (IS), Britain has warned.
Chancellor George Osborne and Foreign Secretary Philip Hammond said it was essential that jihadists - who have seized control of vast oilfields in Syria and Iraq - were isolated from the international financial system.
Writing in The Daily Telegraph ahead of a meeting of United Nations Security Council finance ministers in New York to discuss action against IS, they said weaknesses in IS’ funding network must be exploited.
Just as gas export-terminals are preparing to start up along America’s Gulf Coast, the oil-price crash has made it unprofitable to send the U.S. fuel abroad, according to the North America head of power and natural gas supplier Engie.
It costs about $2 to liquefy gas and another $3 to take it from the U.S. to Asia, said Zin Smati, president and chief executive officer of Engie’s GDF Suez Energy North America. Engie changed its name from GDF Suez SA in April.
Those costs used to leave plenty of profit margin when the gap between LNG prices in Asia and natural gas in the U.S. was more than $14 per million British thermal units. Now, the spread is less than $5, according to data compiled by Bloomberg.
Freedom of information campaigners are claiming victory in their bid to force the Tate to say how much money it has received in sponsorship from oil giant BP.
The funding has attracted controversy since the Deepwater Horizon oil spill in 2010, when 11 workers were killed and four million barrels of oil were spilled into the Gulf of Mexico.
Protesters have picketed events at a central London gallery and 8,000 people signed a petition demanding an end to the deal.