On Wednesday, Shares of Chesapeake Energy Corporation (NYSE:CHK), lost -3.93% to $4.40, as the energy sector takes a hit from the decline in oil prices this morning.
The price of the commodity is back trading in the red as Saudi Arabia reiterated its plan to ongoing to produce oil at higher levels and as investors await stockpile data out of the U.S., the Wall Street Journal reports.
The Energy Information Administration is supposed to release its latest U.S. supply data at 10:30 a.m. ET recently. Oil prices fell on concerns that the data will show an improvement in crude stockpiles.
Analysts surveyed by the Journal had forecast that the EIA would show a decline in supplies for last week. However, the American Petroleum Institute released its weekly figures yesterday and stated a rise of 2.9 million barrels for the same period.
Chesapeake Energy Corporation produces oil and natural gas through acquisition, exploration, and development of from underground reservoirs in the United States. It holds interests in natural gas resource plays, counting the Haynesville/Bossier Shales in northwestern Louisiana and East Texas; the Marcellus Shale in the northern Appalachian Basin of West Virginia and Pennsylvania; and the Barnett Shale in the Fort Worth Basin of north-central Texas.
Shares of Petróleo Brasileiro S.A. - Petrobras (NYSE:PBR), declined -3.85% to $4.25, during its last trading session, as Brazilian stocks declined amid a 52 percent dip in trading volume on Ibovespa companies after a report showed Latin America’s biggest economy posted its biggest primary budget deficit of the year in November, according to Bloomberg.
Forty-seven of 63 stocks on the Ibovespa declined amid speculation Brazil’s finances are deteriorating. The nation’s stock market reopened Monday after being shut two days for the holiday season, which according to traders has reduced the amount of shares changing handing hands in the Sao Paulo exchange contrast with a 30-day average. Bloomberg Reports
“The economy keeps getting worse and worse, which ends up dragging markets down as well,” said Rogerio Freitas, a partner at Rio de Janeiro-based hedge fund Teorica Investimentos. “I don’t see things improving anytime soon.”
Petróleo Brasileiro S.A. Petrobras operates as an integrated energy company in Brazil and internationally. Its Exploration and Production segment engages in the exploration, development, and production of crude oil, natural gas liquids, and natural gas; and sale of crude oil and oil products produced at natural gas processing plants in domestic and foreign markets.
Finally, Shares of Energy Transfer Equity, L.P. (NYSE:ETE), ended its last trade with -2.01% loss, and closed at $13.18.
BG Group (BG.L) and Energy Transfer Equity, L.P. (ETE) and Energy Transfer Partners, L.P. (ETP) declared that the Lake Charles LNG Project has received approval from the US Federal Energy Regulatory Commission (FERC) to site, construct and operate a natural gas liquefaction and export facility in Lake Charles, Louisiana. FERC approval was a key remaining regulatory consent for the Lake Charles LNG Project.
With a conditional authorization from the US Department of Energy to export up to 2 billion cubic feet of natural gas per day (or about 15 million metric tons of LNG per annum), the Lake Charles LNG Project is predictable to be one of the largest LNG export initiatives in the United States. The technology chosen for the project, which comprises aero derivative turbines with selective catalytic reduction, is designed to make it one of the most efficient and cleanest operating LNG facilities in the world, with air emissions predictable to be well below US and state limits.
Final investment decisions from both BG Group and Energy Transfer are predictable to be made in 2016, with construction to start right away following a positive decision and first LNG exports anticipated about four years later.
Energy Transfer Equity, L.P., through its auxiliaries, provides diversified energy-related services in the Unites States. It owns and operates about 7,700 miles of natural gas transportation pipelines and 3 natural gas storage facilities located in the state of Texas; and about 12,800 miles of interstate natural gas pipeline.
