Sentences with phrase «long low oil prices»

The availability of capital to fund unconventional production is the key to how long low oil prices will last going forward.

Not exact matches

Andurand, who runs oil hedge fund Andurand Capital Management LLP, wrote in a string of tweets on Sunday that companies may be less willing to risk investment in long term oil projects because of low crude barrel prices and a predicted peak in electric vehicle demand.

The long era of too much oil sloshing around the world and low prices is coming to an end, just as global events are heating up crude prices.

With oil prices now above the long - term average, oil consumption is no longer getting a boost from low prices and is increasingly reliant on strong economic growth around the world.

If you're talking about a new project with no significant investment already deployed, building a new mine if you expect today's prices to hold in the long term is a tough call — a 50 - year oil sands project is a lot of risk for less than a 10 % rate of return — but even there, you can see the impact of the lower Canadian dollar and the hedge provided by a royalty regime which lowers rates when prices are low.

General Electric's deal with Baker Hughes to create the world's No. 2 oilfield services business is the clearest signal yet that consolidation is picking up in the energy sector as companies face long - term lower oil prices.

BP CEO Robert Dudley correctly called the «lower for longer» oil prices of 2015 - 2016 and he's making predictions again.

If you're talking about a new project with no significant investment already deployed, building a new mine if you expect today's prices to hold in the long term is a tough call — a 50 year oil sands project is a lot of risk for less than a 10 per cent rate of return — but even there, you can see the impact of the lower Canadian dollar and the hedge provided by a royalty regime which lowers rates when prices are low.

The longer that the low oil prices last, the longer that very high prices will persist in future years due to the extreme drop in spending on current exploration.

First, Canadian oil producers have lowered their long - term outlook for global oil prices, and have cut their plans for investment spending significantly more than previously announced.

What's more, analysts with Bank of America Merrill Lynch believe that oil demand will peak sometime after 2050, «as long as we remain in a relatively low oil price environment of $ 55 - 75 per barrel in real terms.»

With the much lower than expected oil prices, we can no longer expect Alberta to be the driver of economic growth in Canada.

The International Energy Agency that previously warned of lower for longer oil prices and warned last year that the oil price recovery was threatened by the possibility of weak demand now has changed its tune and is now saying that it is «mission accomplished» for OPEC as oil stocks shrink at a record pace.

Long - term interest rates are currently low due to low global inflation expectations and moderate growth potential in Canada due to lower oil prices, a heavily indebted household sector and a weakened manufacturing base due to relatively high unit labour costs.

«I think no deal is probably better for the longer - term because it continues this process of rebalancing and there is no rebalancing without pressure and pressure comes through lower oil prices, through tighter credit and we're seeing all of that playing out nicely,» he said.

These charges reflect both a lower oil and gas price outlook and the firm steps we are taking to review and reduce Shell's longer - term option set.

Lower prices for base metals and oil today do not mean that long - term investments, which may take years to complete and last for decades, were somehow a mistake.

More than three years after Bob Dudley said that oil prices would be lower for longer, BP's chief executive still thinks «a price of $ 50 a barrel looks like the right number to plan on for the rest of the decade.»

One small group thinks that lower for longer could end soon because U.S. shale can't keep a lid on prices forever and can't catch up with expected robust demand — all the more so that investments in conventional supply around the world have slumped since the oil prices started crashing.

It remains to be seen if oil prices will remain low for a long period of time, but the Federal Reserve's actions, which have kept lending rates near record lows since 2009, have allowed airlines like Alaska access to capital at a reasonably cheap cost.

Higher oil prices would reinforce current market trends based on reflation: rising long - term bond yields and a shift out of perceived safer assets — bond proxies and low - volatility stocks — and into cyclical assets such as EM.

What is clear is that the longer oil prices remain low, the greater the hardship will be on the Gulf's population.

By now, it should be obvious that the Saudis and their Gulf allies are playing the long game when it comes to the current oil situation, and that means keeping the taps flowing in the midst of a global glut no matter how low prices go.

With the Alberta twist on LOL — lower for longer oil prices — the government has cancelled its earlier promise of a balanced budget by 2020.

With lower prices forcing many oil companies to take on more debt, the bankruptcy or closure of one or more major oil companies is not an impossible scenario, and would have major repercussions on oil prices, both in the short and long term.

The potential reduction in Chinese imports could lead to lower oil prices for much longer, Gunzberg says.

As long as Canada remains weak because of low oil prices, a weakened currency and a general slowdown of the world economy, we'll continue to see opportunities in the beaten down Canadian banking sector.

The lower - for - longer outlook for oil prices took its heaviest toll yet in the third quarter as oil companies again reported a dramatic drop in income.

Yes potentially longer - term low oil prices means the risk of lower earnings next year are increased.

The last time this happened the unwinding of the large long position in 2014 sent oil prices crashing from $ 107 per barrel to a low of $ 26 per barrel.

With oil prices trending near their long - term lows, you can profit from a rebound by buying oil stocks and energy - related stocks.

The committee, in a communique issued at the end of its first meeting for the 2016 fiscal period in Abuja, observed that while the period of low oil prices, which occurred in 2005, lasted for a maximum of eight months, the current situation was expected to continue over a longer period of time.

But if oil prices stay too low for too long, they will no longer be able to afford to keep purchasing CO2.

The last time oil prices stayed low for a very long time was the 1980s and 1990s.

As we mentioned in our last quarterly update, with declining oil prices driving oil shares lower, it is easy to lose sight of the longer term fundamental case for oil and gas.

No one really knows how long oil prices will continue to support low mortgage rates.

I'm a long term bull on oil, and consider $ 70 - 75 as pretty much the lower bound on prices, coupled with frequent and ultimately sustained price spikes above $ 100.

What this argues for is crude oil prices staying lower for a longer period of time — my guess is between $ 30 and $ 50 per barrel of Brent - type crude.

ii) Corporate Stupidity: Focusing on long - term asset values, particularly in this lower oil price environment, assumes corporate execs.

«We want to make sure we buy long lead - life, low decline - rate assets at attractive valuations, with good balance sheets, in order to survive the short - term and very intense volatility we're seeing in the price of oil,» McKinley said.

They've done just fine through longer periods of much lower oil prices.

The contango exhibited in Crude Oil in 2009 explains the discrepancy between the headline spot price increase (bottoming at $ 35 and topping $ 80 in the year) and the various tradeable instruments for Crude Oil (such as rolled contracts or longer - dated futures contracts) showing a much lower price increase.

Also, any incremental efforts to lower world oil prices will only facilitate the increased consumption of oil by the emerging economies, so there's little to be gained in the short run and a lot to be lost in the long run.

Over the last few months, a consensus has gelled that lower crude oil prices, if not these very low prices, will persist for a longer time, and that has led to significant cuts in spending — 30 to 50 percent for independent companies, and about 10 to 15 percent for the large companies.

Levi said low oil prices can affect a long - term exploration strategy simply by crimping cash flow:

I noted that oil exploration is a «long game» gauged around the likelihood for rising demand in decades to come, but asked if they thought low prices (and projections for more of the same) played a role?

So while falling oil prices may threaten renewables in the short - term, climate policies have the potential to act as a counterweight, encouraging long - term, low carbon, investment.

2) Low oil prices mean difficult - to - decarbonize sectors of the economy — like long - haul trucking and aviation — get even more difficult to decarbonize on a relative basis, increasing the demand for indirect GHG abatement options (such as CDR).

The 2010 Deepwater Horizon accident and spill in the Gulf of Mexico was a major setback for the offshore hydrocarbons industry; prospects for offshore oil and gas have also been shaken by the shale revolution and by lower prices, and must cope with longer - term uncertainties over demand.

The analysis found, somewhat surprisingly, that only proceeding with lower cost, less carbon - intensive projects needed to satisfy demand in a carbon - constrained world will add over $ 100 billion to the value of the world's seven oil majors, unless oil prices spike beyond $ 100 a barrel for a sustained period of time — well over OPEC's long - term average assumption of around $ 80 a barrel.