Crude oil prices in first-quarter 2015 were the lowest in several years, which contributed to reduced profitability for these companies compared to previous quarters. Although companies reduced investment spending, declines in operating cash flow were greater, contributing to a decline in cash balances. Second-quarter 2015 results could show continued declines in profits, cash flow, and capital expenditure.

Russia is the world's largest producer of crude oil (including lease condensate) and the second-largest producer of dry natural gas. Russia also produces significant amounts of coal. Russia's economy is highly dependent on its hydrocarbons, and oil and natural gas revenues account for more than 50% of the federal budget revenues.

Global oil and natural-gas producers have delayed $200 billion of investment in more than 45 projects following the slump in crude prices, according to Wood Mackenzie.

Gazprom is first and foremost a tool of Russian foreign policy, which Putin is not shy about wielding to pursue Russian interests. During Putin’s years in power, the Kremlin has used its control over Gazprom — increasing or decreasing the cost of energy — to maintain influence over Russia’s neighbors. Putin once described Gazprom as “a powerful political and economic lever of influence over the rest of the world,” and a team of Russian foreign policy experts noted that “if the leaders of this or that country decide to show good will towards the Russian Federation, then the situation with gas deliveries, pricing policy and former debts changes on a far more favorable note to the buyer.”

Gazprom has every opportunity for financing the scheduled transboundary gas transmission projects.

U.S. Rig Count is up 19 rigs from last week to 876, with oil rigs up 21 to 659, gas rigs down 2 to 216, and miscellaneous rigs unchanged at 1. U.S. Rig Count is down 1,007 rigs from last year at 1,883, with oil rigs down 903, gas rigs down 102, and miscellaneous rigs down 2. The U.S. Offshore rig count is 31, unchanged from last week, and down 29 rigs year over year. Canadian Rig Count is up 8 rigs from last week to 200, with oil rigs unchanged at 98, and gas rigs up 8 to 102. Canadian Rig Count is down 195 rigs from last year at 395, with oil rigs down 140, and gas rigs down 55.

Last week, Operator Statoil and its PL146/PL333 partner Total E&P Norge announced they made a gas and condensate discovery in the Julius prospect in the King Lear area in Norway’s North Sea

Fifteen nations, more than half of them from the former Soviet bloc, endorsed an action plan to improve energy infrastructure and ultimately to ensure each of them maintains three separate sources of supply. Ministers meeting in Dubrovnik, Croatia, with Maros Sefcovic, the European Commission’s vice president in charge of energy union, chose seven gas link projects that should be sped up and that may be eligible for financial support.

This month the head of the EBRD said the bank could invest hundreds of millions of dollars in Ukraine's energy sector this year, but that any investment would depend on Kiev implementing long-promised energy sector reforms.

For many years, Russia has advocated that the frequent gas interruptions are the fault of transit states such as Ukraine, whom the Kremlin sees as unreliable. As a result, Gazprom rolled out several pipeline projects that would bypass Ukraine altogether and provide a direct route to its customer base in Europe.

U.S. Rig Count is up 1 rig from last week to 863, with oil rigs up 5 to 645, gas rigs down 2 to 217, and miscellaneous rigs down 2 to 1.

Eni has started production of the giant gas field Perla, located in the Gulf of Venezuela, 50 kilometers offshore. The first production well has been opened and is currently in the clean-up phase.

Running from Russia to Germany under the Baltic Sea, Nord Stream I is an export gas pipeline with an annual capacity of 55 billion cubic meters. Nord Stream AG is the project operator (Gazprom holds 51 per cent, Wintershall and E.ON – 15.5 per cent and ENGIE – 9 per cent).

The implementation of the terms of the signed document will allow Rosneft to access the high growth potential Egyptian gas market and deepen broader cooperation between the two companies. In addition the cooperation with EGAS will allow Rosneft to strengthen its position in the global LNG trading market.

Europe could take advantage of global LNG dynamics, but much of the evolution of the European LNG market depends on Gazprom’s decisions in the short to medium term,