The Shocking News Of Bankruptcy And What It Meant To The Texas Crude Oil Industry
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More ...The US is among the major importers of crude oil and various crude oil products. But, is itself an important producer of the commodity.
More ...The US is one of the most important countries for investors in the oil and gas sector and companies that want to export crude oil along with its products.
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The Shell Exploration and Production Company, which is a subsidiary of Royal Dutch Shell, recently contracted Danos to be in charge of the maintenance of its Gulf of Mexico oil and gas exploration infrastructure. The contract which was secured late in September 2017, entails that Danos will be in charge of providing both the automation and mechanical services to facilitate the maintenance of three of the Gulf of Mexico oil and gas exploration infrastructure. It is a huge contract which was sought after by many other companies within the sector. Danos led the bids based on its robust and highly innovative mechanical and automation services. But, there are other factors which are at play and largely account for the firm’s ability to have emerged as winners of the contract.
Danos is one of the world’s most prolific figures of the oil and gas sector. Even though it is not actively involved in the production and distribution of oil and natural gas, it works closely with a number of notable companies within the sector to maintain the oil and gas production infrastructure. It also offers project management services involving automation and mechanical related projects. The company has been around for more than 50 years and has enjoyed attention from many oil and natural gas firms across the US and beyond. This contract is one out of the many that Shell has given to Danos owing to the firms' strong relations. It is understood that the project will open a new chapter in the cooperation between them.
The recent oil supply glut which surged over the global oil and natural gas market is to bear a huge blame for the continued drop in oil prices. Most economic experts are actually in agreement on this matter. Granted, the demand and other economic factors have also contributed to the recent drop in oil prices. But the supply glut still bears a lion share of the blame. It is very easy to make this deduction based on the fact that the recent reduction in supply instantly triggered a sharp change in oil prices.
For example, OPEC’s deal to curb supplies for the next 9 months instantly caused oil and natural gas futures to gain significantly. This is testimony to the huge impact that supply has on global oil prices.
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