Boston, MA 09/11/2014 (wallstreetpr) – Oil and natural gas are two of the major problems for the U.S. and European countries, and they are trying hard to get rid of it as soon as possible. According to reports, U.S. and European unions are all set to cut down the billions of dollars that were to be invested by some of the world’s largest companies for oil exploration in Russia. If it happens, then it will certainly affect Putin’s oil deal with Exxon Mobil Corporation (NYSE:XOM) in an adverse way.
Road ahead:
The differences that rose between U.S. and Russia over Ukraine issue have affected both the countries badly in terms of businesses, revenues and mutual respect. According to new amendments passed by Russian government, U.S and European union nations will not be able to search crude oil in Russia’s Arctic, shale formations or deep seas. The information was revealed by three U.S officials who were very close to this matter on the condition of not revealing their names as this matter was very confidential in nature.
If these amendments are regularized, then a lot of companies from London to Dallas including companies like BP plc (ADR) (NYSE:BP) and Exxon Mobil Corporation (NYSE:XOM). European Union ambassadors met yesterday and discussed on this issue in order to take any further action or wait to see if Russia backs down in Ukraine issue. If things don’t improve in a few days time, then several companies will be banned to execute their operations on Russian soil. Once the EU countries take any decision, U.S. will follow them with a similar package. EU countries agreed upon various packages and oil-related sanctions on September 8, 2014 with the intention to hobble Russia’s defense, finance and energy industries. Even if these sanctions are passed, then also production and drilling work from conventional land-based wells will not be interfered.
