Wrong way on Wall Street
Lack of access to capital markets could have consequences for US oil production
Wall Street is like a window: sometimes open, sometimes closed. For US-listed E&P companies, if it is open at all, it is a sliver at best. Sharply reduced access to stock and bond deals equates to less cash to grow oil output beyond projects already underway. It also alters the competitive landscape. IOCs like ExxonMobil and Chevron that do not rely on raising money in public markets could increase their share of production at the expense of small- and mid-sized E&P independents that do. According to data from Dealogic, a company that compiles transaction statistics, US E&P companies raised only $3bn from equity sales last year, down 59pc from 2017 and 91pc from 2016. In the four
Also in this section
28 March 2024
As a gas supply shortfall looms, balancing regulatory flexibility with energy security and investor confidence will be critical
27 March 2024
Oil producers have to untangle the increasingly complicated relationship with their natural resources
26 March 2024
Strategic stocks have become as much a market management tool as a security of supply buffer, and this new tactic is likely to continue beyond the next election
25 March 2024
Low carbon intensity and sizeable projects such as Johan Castberg coming onstream in late 2024 suggest a robust outlook at least until 2030