PPP Management

There are 3 major issues for, at least half if not all of, 2015.   The first one will affect the second and both have the potential to impact the third. The price of oil The global economy, although specifically Europe, US and China. The UK General Election The continuing devaluation of the price of oil has already have significant detrimental impact for Russia and has the potential to severely threaten the economies of those countries dependent upon exports.   Whilst a lower oil price is good news for the consumer, with lower prices at the petrol pumps and lower costs for consumer goods; the impact on government finances, including the UK are significant.   A continued low price has not only the resultant effect that governments raise less revenue the deflationary effect could further worsen consumer confidence and the wider economy. Economies around the world are having mixed fortunes and the prospect for world trade faces a challenging time. ...

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...

The press is carrying a number of stories covering the oil and gas and energy sectors which makes for interesting reading. A positive article in Supply Management ( http://www.supplymanagement.com/news/2014/oil-and-gas-supply-chain-contributes-ps35-billion-to-uk-economy  ) covers an EY report detailing the benefit to the UK economy of North Sea oil and gas production.  A number of interesting points: 1) Peak production was 1999 for oil and 2000 for gas and by 2012 production was down by a third in both commodities; however, a contribution of £35Bn to the UK economy is not an insignificant amount. 2) This financial amount is clearly of great interest to both UK and Scottish governments with the Independence vote only a few months away, as the economic viability of an independent Scotland has the potential to be a deciding factor in the vote. 3) Only a short mention is given to shale gas.  The exploitation of shale gas, whilst contentious, has much le...