Thursday, August 27, 2015

Oil Companies Need $500 Billion To Stay Afloat

At a time when the oil price is languishing at its lowest level in six years, producers need to find half a trillion dollars to repay debt. Some might not make it.

The number of oil and gas company bonds with yields of 10 percent or more, a sign of distress, tripled in the past year, leaving 168 firms in North America, Europe and Asia holding this debt, data compiled by Bloomberg show. The ratio of net debt to earnings is the highest in two decades.

If oil stays at about $40 a barrel, the shakeout could be profound, according to Kimberley Wood, a partner for oil mergers and acquisitions at Norton Rose Fulbright LLP in London. West Texas Intermediate crude was up 2.8 percent at $39.68 a barrel at 8:10 a.m. in London.

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Screw 'em !!!

If we're serious about stopping climate change / global warming, let the oil companies collapse. That half a trillion dollars would be better spent encouraging the development of alternative energy sources (and I don't mean nuclear, or any company run by Obama ad-Dajjal's minions). Here is one possible example:

A new species of palm tree has started sprouting around Dubai. But instead of producing dates, the fronds of the Smart Palm harness the sun’s energy to allow people to look up city information, access Wi-Fi, and charge their phones, all for free.

Topped with nine leaf-shaped photovoltaic modules, a six-meter-tall Smart Palm can generate around 7.2 kilowatt hours per day, enough to operate without ever drawing off the grid.

The two prototype palms that have already been installed — one at a beach near the Burj Al Arab hotel and other at centrally located Zabeel Park — each carry a Wi-Fi hotspot, eight charging stations for phones and tablets, and a touch-screen panel giving local details on things like weather and transportation.

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