Category: US

Whiting Petroleum Corp, Oasis Petroleum, Apache Corp, EnCana, Devon Energy Corp, Anadarko Petroleum Corp. are only a few of the big names of shale oil sector in north America. These are some of the names that have given a boost to the fall of the oil price. Only in America there are 75 shale-focused companies with different sizes. What is going to happen with all these companies if the oil stays at this level? Many of them have big debts and have also big problems on paying the debts because the initial projections have been made with a 100 Usd oil price. Now many of these companies are under the eye of the majors. Exxon Mobil and Chevron most likely are going to buy some of them. The problem with these companies is also that their valuation is made on a reserve basis. As the price of oil has dropped the valuation will be less interesting from what the owners would like. This is a golden moment for the majors to enlarge their reserves with a cheap price. Now it remains to see if it will be a consolidation between peers or these small medium and large companies will finish in the belly of the largest and oldest oil companies. We know that the crises are made for the strongest. So if these companies come out from the hell they will be stronger in the future. The only thing we wait to know is the way these companies will escape from the death. Many analysts suggest that one of the ways to consolidate the sector would be a "stock for stock" because of the financing lack and the amount of the debt these companies already have. Otherwise the major part of them will be incorporated by any big fish of this market.

Time for a consolidation in the oil shale industry

Whiting Petroleum Corp, Oasis Petroleum, Apache Corp, EnCana, Devon Energy Corp, Anadarko Petroleum Corp. are only a few of the big names of shale oil sector in north America. These are some of the names that have given a boost to the fall of the price of oil. Only in America there are 75 shale-focused...

Nasdaq reaches again 5.000 points

“Nasdaq” Reaches again 5.000 points!

We had to wait fifteen years to see another time the Nasdaq to touch the 5.000 points level. Few analysts would have imagined that the Nasdaq would take so much time to reach again this historic level. Now the question is: What ought to think the investors? May be they have to be afraid? In...

oil_the energy of the next fifty years

“OIL” The energy of the next fifty years

One year ago we all were very worried about the impact that the high oil price would have on the world’s economy. Nowadays we are worried about the impact that would have the low price of oil. Why all this confusion on the investor minds within one year. The real oil demand has changes between...

Lessons from Alan Greenspan

Lessons from Alan Greenspan

We often need to hear Alan Greenspan to be sure about what is going on with the economy. According to the ex president of the Federal Reserve, the economy is not so strong as the markets are telling us. There is not a solid economic growth he told to the Cnbc. And the reason why...