Oilman and energy trader T. Boone Pickens, 89, said he is closing the hedge fund he's run for the past 20 years, BP Capital, per the WSJ. He cited his deteriorating health and the fund's weak financial performance.
Why it matters: It's the end of an era for a key energy figure, but separately, and more broadly, his decision to wind down the fund reflects the struggles being felt industry-wide. Several other commodity funds have also closed recently as a result of low returns and falling oil prices.
Brent crude oil prices rose above $70-per-barrel for the first time in a little over three years in trading yesterday before falling back slightly, while WTI, the U.S. crude benchmark, also rose to its highest levels since late 2014.
The latest:Via the Wall Street Journal, “Oil prices slipped off a three-year high on Friday after China reported a fall in monthly crude imports.”
Why it matters: Yes, prices remain modest compared to the first half of the decade, which saw prices above $100 in several years. But if prices keep climbing (a big if, to be sure), it could provide a political lift for the White House as it pushes for expanded industry drilling access.
BP CEO Bob Dudley just visited Alaska to discuss with Gov. Bill Walker the producer’s potential involvement in a massive liquified natural gas export project there, Dudley told Axios in an exclusive interview this week.
Why it matters: BP’s consideration gives potential credence to the $43 billion proposed project, which coincided with President Trump visiting China in November and touting his administration’s backing of it. Many analysts doubt the proposal will actually come through, though, given a lack of details and firm commitments at the time of the announcement.
Let's get caught up on the latest developments after the Interior Secretary Ryan Zinke announced Tuesday evening that he's yanking Florida from the agency's new plan to massively expand coastal areas offered for oil-and-gas leasing.
Not normal: Offshore leasing policy is usually the stuff of painstaking detail, so a big, abrupt policy shift made without any accompanying documents has left confusion in its wake.
BP CEO Bob Dudley showed a muted appetite for pursuing drilling in new areas off America’s coasts in an exclusive interview with Axios this week.
Why it matters: Dudley's comments throw cold water on the idea oil companies are going to jump on drilling new wells off America’s coasts in response to the Trump administration proposal to open up almost all federal waters to new leasing. The reality is more complicated — and less compelling — than top administration officials have made it seem as they pursue President Trump’s “energy dominance” agenda.
