Oil companies struggle to secure financing, as banks feel climate pressure

But investment banks remain reluctant to issue long-term debt to oil companies, a trend that began even before the loss of demand that came with the COVID-19 pandemic, said Dean Foreman, chief economist at the trade group American Petroleum Institute.

Pitching financial institutions on putting money into oil and gas drilling projects has become an uphill battle, said Judd Walker, CEO of EnerVest, a privately held company in Houston. For now, interest rates for oil companies remain in line with what corporations at-large are being charged, Foreman said.

But among Republicans in fossil fuel producing states such as Texas, there is increasing concern that this new wave of climate-centric investing was likely to damage their homegrown industries. Last year, the Texas Legislature passed a law requiring banks to certify they were not discriminating against oil and gas companies because of environmental metrics, or else risk losing out on state contracts.

It’s the riskiest lending out there. When oil drops to $30/bbl, the collateral is worth virtually nothing.

According to Biden we can just shutdown all oil and gas and just buy a solar panel. Okay then.

Must be feeling the negative effects of Slow Joe's first-100-day-in-office war he waged against the petroleum industry?

Oil companies are the top investors in renewable energy.

Purposeful destruction of the US, brought to you by Democrats.

South Africa South Africa Latest News, South Africa South Africa Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

US Regulator 'Improperly' Pushing Banks to Avoid Serving Crypto Companies, Lawmaker SaysThe Federal Deposit Insurance Corporation (FDIC) may be leaning on banks to prevent them from providing services to cryptocurrency companies, U.S. Sen. Pat Toomey alleged Tuesday, citing whistleblower communications. nikhileshde reports. 🚀 Thankss a millon nikhileshde Those old geriatrics SenWarren are just slowing down the speed of progress and limiting true opportunities for youths nikhileshde Interesting to _Crypto_Pirates
Source: CoinDesk - 🏆 291. / 63 Read more »

Oil companies say they’ll move ahead to develop giant Pikka oil project on Alaska’s North SlopeThe field is considered one of the largest conventional discoveries of oil in the U.S. in decades. Global oil and gas companies Santos and Repsol announced they will invest $2.6 billion in the project. How much will they pay for the fossil fueled climate destruction they are causing? Or do they expect their Republican political puppets will ensure the taxpayers continue to pay the ever increasing costs? We need to end the fossil fuel era before it ends us ClimateActionNow Drill baby drill! Not just missing the point but literally bought and paid to close their eyes to the reality of climate changes. What ya gonna put it out with..? Oil?
Source: adndotcom - 🏆 293. / 63 Read more »