Sep 25, 2019

How the U.S. oil boom echoes through the economy

A BP oil refinery in California. Photo: David McNew/Getty Images

A new Dallas Fed note explores a metric of what the shale-driven U.S. production surge has meant for the wider economy.

What they found: "The share of the upstream oil and gas sector in the level of U.S. nonresidential fixed investment doubled from 3.4 percent in the decade before the shale oil boom to an average of 6.4 percent since 2008."

But, but, but: That can cut both ways, because investment levels are sensitive to oil price movements.

  • "While contributing positively to investment growth most of the time, upstream oil and gas became a drag from roughly 2014 to 2016 when oil prices fell about 50 percent," the report states.

Go deeper: BP CEO: "Remarkable" that prices stabilized so fast after Saudi oil attack

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BP names Bernard Looney as its next CEO

BP said Friday that Bernard Looney, head of the company's oil-and-gas exploration and production unit, will take over as CEO in early February.

Why it matters: It adds clarity to the oil giant's succession plans after word emerged recently that current CEO Bob Dudley, 64, is readying to step down after a decade in the role.

Go deeperArrowOct 4, 2019

The oil market's dueling pressures

Illustration: Sarah Grillo/Axios

Two pieces of news this morning distill the competing forces acting on oil markets these days.

The big picture: Geopolitical risks in the vital oil producing and transit region can cause short-lived price spikes, but at the same time, a drumbeat of bearish economic news is preventing a sustained price rise.

Go deeperArrowOct 11, 2019

Making sense of Chevron's new climate pledge

Illustration: Aïda Amer/Axios

Chevron's pledged this week to cut emissions intensity — that is, emissions per unit of energy produced — from its oil and gas production.

Why it matters: The oil giant hasn't been as aggressive on climate change as European-based oil majors like Shell.

Go deeperArrowOct 4, 2019