Russian meddling could mean big headaches for some big oil companies

BP and Chevron (CVX) rank among the biggest losers if Russia-Ukraine tension grows worse, with collateral damage in related corporate bond spreads, Gimme Credit bond analyst Philip Adams says.

BP, owner of 19.75% of Russian energy giant Rosneft, is the highest profile loser, according to Adams, and any sanctions that affect oil and gas flows to Europe or banking/capital flows, would "hit Rosneft and BP early and hard.”

CVX pipeline investments could be hurt, and it signed a 50-year deal to explore and develop oil and gas in western Ukraine; "a Russian takeover spikes that deal."

Halliburton (HAL), Baker Hughes (BHI) and Weatherford (WFT) all do business in Russia that could be prohibited if it is labeled a rogue nation.

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Comments (14)
  • Alan1967
    , contributor
    Comments (241) | Send Message
    > CVX pipeline investments could be hurt, and it signed a 50-year deal to explore and develop oil and gas in western Ukraine; "a Russian takeover spikes that deal."


    Crap. I bought CVX instead of Exxon because CVX didn't have as much exposure to Russia (i.e. Putin's corruption). Little did I know "Russia" would be moving it's boarders into Ukraine.
    4 Mar 2014, 06:29 PM Reply Like
  • bigazul
    , contributor
    Comments (1073) | Send Message
    Stupidly written "news brief." At no time was Russia invading western Ukraine. Keep your CVX, it's a drop in the bucket for them anyway.
    5 Mar 2014, 11:38 AM Reply Like
    , contributor
    Comments (5096) | Send Message
    Keep your CVX.


    Imo, All these negative concentrated pieces written over the last 2 days are nothing but noise for an Investor in BP and CVX.
    4 Mar 2014, 06:33 PM Reply Like
  • WhatdoIknow1
    , contributor
    Comments (652) | Send Message
    Try not to forget that Russia has the leverage in this instance. Europe gets about forty percent of its energy from the east and Obama's foreign policy is based on fantasy, feelings and guilt. The current reply to Putin being a warning that being on the wrong side of history might reflect poorly on his character in his biography.


    oooh scary
    4 Mar 2014, 06:58 PM Reply Like
  • deercreekvols
    , contributor
    Comments (9420) | Send Message
    Seems like a concentrated effort on someone's part to push (BP) lower over the last few days.


    Speculation, from what I can see.


    Long (BP) and getting tired of the hit pieces on them.


    Where is the Breaking News that (STO) is in position to benefit if tensions continue in Ukraine.


    Long (STO) and wondering?
    4 Mar 2014, 07:12 PM Reply Like
  • Debutant
    , contributor
    Comments (2777) | Send Message
    The real threat for BP is in that courtroom in the United States of America; not in Russia or in Ukraine.
    4 Mar 2014, 07:46 PM Reply Like
  • maudie
    , contributor
    Comments (487) | Send Message
    EU gets energy supply cut off if it enforces anything besides some requisite and understood rhetorical flourishes over the next few weeks. The formerly great Britain isn't about to harm BP more than what our lawyers have already done.
    Too bad coal isn't king, the pipeline isn't built, exploration on federal lands isn't in full swing or we could have ameliorated Putin's threat of turning off the spigot and the EU could have given more than lip service to Obama's economic threats. A retreating economic America creates a power vacuum and will be filled by whatever despot decides to fill it. Kowtowing to EPA bureaucrats and paring America's exceptionalism has its consequences.
    4 Mar 2014, 08:03 PM Reply Like
  • Disturber
    , contributor
    Comments (198) | Send Message
    Obama keep bloviating threats that he has neither the will nor the capacity to carry out. Germany is certainly not going along with sanctions and neither is Britain. The other countries that are dependent upon Russian gas are not going to support sanctions and so all of the fuss is not likely to result in anything negative. We are seeing the consequences of lazy, uninformed supposed leadership and it isn't pretty. When O failed to attend the meeting of the National Security Agency on the day the Russians moved, I gave up on any happy ending. He will go down in history as the man who revived the cold war.


    4 Mar 2014, 09:57 PM Reply Like
  • KimFeil
    , contributor
    Comments (87) | Send Message
    I read an unconfirmed report that the Ukraine president died of a heart attack..
    4 Mar 2014, 11:56 PM Reply Like
  • gray67
    , contributor
    Comments (63) | Send Message
    It was radiation poisoning.
    5 Mar 2014, 12:07 AM Reply Like
  • Dorleans
    , contributor
    Comments (26) | Send Message
    I am a retired wall street equity trader at the MD level. In my humble opinion, this market is taking this event extremely lightly, and the repercussions of our impotent foreign policy will continue be felt by many of our "former" allies. We seem to welcome our enemies like Iran, and treat Israel like dirt. Now as to the point of CVX; indeed it is truly exposed, but having said that it will psychologically rise as oil regains its strength (along with Gold, Silver), so I wouldn't worry much about that stock. If I owned C, or a number of other companies with both rushian and EU exposure, and being hurt by the net interest margin falling once we begin declining again, I would be worried. Note, I have a short position in C, no position in CVX, but am long USO.
    5 Mar 2014, 01:30 AM Reply Like
  • AlfredBurdett
    , contributor
    Comments (2) | Send Message
    <i>... Russia that could be prohibited if it is labeled a rogue nation.</i>


    Sheesh, is that the best you can come up with for an argument?


    Do you seriously believe those to whom oil and gas flows in Europe are going to shut down their industries just to add credibility to John Kerry's self-serving lies about what's happening in Ukraine?


    And do you really see the UK collaborating with the US in sabotaging BP, their largest company?


    The most likely effect of a worsening crisis in Ukraine are (a) an increase in oil price and (b) possible devaluation of the ruble. Since Rosneft's costs are denominated in rubles and their sales are denominated in dollars, there should be a net benefit to Rosneft.
    5 Mar 2014, 03:27 AM Reply Like
  • Rose_Colored_Glasses
    , contributor
    Comments (1089) | Send Message
    Be logical. The EU is going to disrupt their energy flow for a perogi peninsula? Buy this dip, from an economic standpoint it is noise. Hope it works out for the folks, but the reality is that Putin trumped the world on this move, taking over the ports, airports, and military bases without firing a shot. Still, in the long run, he knows that his Achilles heel is the ruble and cannot take a hit or win a currency war. In a couple of months, this will be history and have little impact on the global economy. This is an instance where global markets drive the peace and solution.
    5 Mar 2014, 08:58 AM Reply Like
  • Landsharks6
    , contributor
    Comments (153) | Send Message
    I have held through the spill, added through the spill, & will continue to hold & add to BP through this crises, they / we have been through controversy after controversy and continues on , its a great company who puts their employees & shareholders first. One of my largest holdings.


    Peace & Dividends to all
    5 Mar 2014, 02:12 PM Reply Like
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