Falling prices & credit crunch - oil industry problems appearing?

    • Falling prices & credit crunch - oil industry problems appearing?

      Extract from "The Canadian Press" : <link removed>
      Shares in North Sea oil producer Oilexco Inc. (TSX:OIL) slid more than 43 per cent in early Monday trading after the company announced delays in a debt financing.

      Oilexco said Friday that "due to the unprecedented liquidity and volatility issues facing the credit markets" the closing of a refinancing of its current debt obligations and an increase in its debt availability from US$700 million to US$1 billion have been delayed.

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      Sevan is also having problems. With the oil prices falling, many projects may turn out to be uneconomical and have problems. Next step, watch for the oil rig and offshore builders.