Oil and Gas - Still in the headlines
Yesterday we commented on a number of stories concerning the oil and gas sector. Today articles from the Daily Telegraph continue on the sector, with similar themes.
The troubles in dispute and the use of sanctions by the international community ( http://www.telegraph.co.uk/finance/financialcrisis/10794425/US-hits-Russias-oil-kingpin-Igor-Sechin-with-first-energy-sanctions.html ) on the chairman of Rosneft that could result in serious implications for the Russian economy. The close business relationship between BP and Rosneft could also be affected by the use of sanctions and this is covered in an article highlighting the position of BP's chairman, Bob Dudley, who also sits on the Rosneft board ( http://www.telegraph.co.uk/finance/newsbysector/energy/oilandgas/10794083/BP-committed-to-Rosneft-as-Russian-energy-giants-chief-Igor-Sechin-is-placed-on-US-sanctions-list.html )
Yesterday's coverage of the positive and significant contribution to the UK economy by North Sea oil is in stark contrast to the news of continuing woes of BG Group and the impatience of institutional investors in realising profits from its extensive portfolio. ( http://www.telegraph.co.uk/finance/newsbysector/energy/oilandgas/10794223/Asset-sell-down-looms-as-BG-ousts-chief-executive.html )
There is clearly a long way to go in the Russia / Ukraine dispute and the impact that this will have on the oil and gas sector will continue to run. Furthermore, the sanction targeting of Putin allies who have significant oil and gas sector influence will have notable consequences for western economies. Continuing yesterdays theme of mergers and acquisitions in oil exploration companies; the news of BG Group woes has the potential for divestment and partial sell-offs. There is considerable turbulence in the sector and further news would not be unexpected.
The troubles in dispute and the use of sanctions by the international community ( http://www.telegraph.co.uk/finance/financialcrisis/10794425/US-hits-Russias-oil-kingpin-Igor-Sechin-with-first-energy-sanctions.html ) on the chairman of Rosneft that could result in serious implications for the Russian economy. The close business relationship between BP and Rosneft could also be affected by the use of sanctions and this is covered in an article highlighting the position of BP's chairman, Bob Dudley, who also sits on the Rosneft board ( http://www.telegraph.co.uk/finance/newsbysector/energy/oilandgas/10794083/BP-committed-to-Rosneft-as-Russian-energy-giants-chief-Igor-Sechin-is-placed-on-US-sanctions-list.html )
Yesterday's coverage of the positive and significant contribution to the UK economy by North Sea oil is in stark contrast to the news of continuing woes of BG Group and the impatience of institutional investors in realising profits from its extensive portfolio. ( http://www.telegraph.co.uk/finance/newsbysector/energy/oilandgas/10794223/Asset-sell-down-looms-as-BG-ousts-chief-executive.html )
There is clearly a long way to go in the Russia / Ukraine dispute and the impact that this will have on the oil and gas sector will continue to run. Furthermore, the sanction targeting of Putin allies who have significant oil and gas sector influence will have notable consequences for western economies. Continuing yesterdays theme of mergers and acquisitions in oil exploration companies; the news of BG Group woes has the potential for divestment and partial sell-offs. There is considerable turbulence in the sector and further news would not be unexpected.
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