Oil and Gas Today with Chris Faulkner – Podcast #517

The latest U.S. sanctions might actually turn Russia’s head this time.  Now, American banks can not approve loans with Russian companies for longer than 90-days.

This affects Rosneft, Russia’s largest oil company.  It will now have more difficulty obtaining long-term money.  And for some of the Billion-Dollar projects it’s involved in – mostly in the Arctic – this could sting.

Russia is now becoming an International pariah, which puts other major oil companies at risk.  Exxon Mobile has billions of investments with Russia in the Arctic, and BP is a minority owner of Rosneft.

For now, the companies are sticking to their guns, and plowing ahead with their operations in Russia. But with the standoff descending into a full blown international crisis, the executives in Exxon’s and BP’s front offices must be getting more nervous by the day.

Comments are closed.