Results from second-quarter 2015 financial statements from U.S. companies with onshore oil operations suggest continued financial strain for some companies. Low oil prices have significantly reduced cash flow for U.S. oil producers. To adjust to lower cash flows, companies have turned to capital markets financing and also have reduced capital expenditures. With energy company bond yields widening in relation to U.S. Treasury bonds, some companies may have to reduce capital expenditures further to service their debt.
- Natural gas-fired power plants lead electric capacity additions in Mexico
- Natural gas prices in 2016 were the lowest in nearly 20 years
- Crude oil prices expected to increase slightly through 2017 and 2018
- Wholesale power prices in 2016 fell, reflecting lower natural gas prices
- Renewable generation capacity expected to account for most 2016 capacity additions