According to an analysis by the U.S. Energy Information Administration, low oil prices have “significantly reduced cash flow for U.S. oil producers.” To cope with the lower cash flows, companies have turned to capital markets financing and have reduced spending. Energy company bond yields are widening in relation to U.S. Treasury bonds. For that reason some companies may have to reduce spending further to pay off their debt.
And the submarine fiber industry is feeling the pressure. According to Submarine Telecoms Forum’s database
systems for offshore energy companies for 2015-2017. As of last year, there had been seven more systems
Other systems have been pushed back as far as 2018, which will theoretically have eight, and five in 2019. The new dates are not set in stone, however, and new delays may occur depending on how the oil industry proceeds from here.
The 44 companies analyzed in the report contributed to the global increase in oil production over the last few years. Most of their operations are focused in onshore shale plays in the United States. According to their financial statements, their combined production was about 2.7 million barrels per day over the first half of 2015. This represents about 35 percent of U.S. Lower 48 production.
After the continual tumble of crude oil prices, there were no new systems this year. There are now five planned for 2016 and two planned in 2017.
All hope is not lost, however. According to an Aug. 30 Bloomberg article, Italian oil company Eni SpA discovered a “super giant” natural gas field offshore Egypt in what the company said is the largest find in the Mediterranean Sea. of collected, current information on the industry, there has been a 61 percent decrease in planned
planned for 2016, 11 for 2017 and five in 2018. One had been planned for this year.
Eni will most likely sell most of the fuel into Egypt’s domestic market, according to an unnamed source in the article. They expect a