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Moody’s Talks – Behind the Bonds
Oil and gas companies reap credit benefit of high energy prices; Europe faces gas crisis
If there’s one sector that affects virtually every other corporate sector you can think of, it’s energy—oil, fuel and natural gas. From food, to travel, to tech, costs and selling prices all depend in part on energy costs. And those energy costs have been through the roof in 2022, especially after Russia invaded Ukraine in February. High energy prices are good news for credit quality in the oil and gas industry. But, as we discuss in our second segment starting at 08:05, the military conflict in Ukraine has also laid bare how much Europe depends on Russia for energy. In recent months, Russia has significantly reduced natural gas deliveries to Europe, leading already-high prices to soar and hindering Europe’s economic recovery from the coronavirus pandemic shock.
Guests: Elena Nadtotchi, Senior Vice President, Corporate Finance Group, Moody’s Investors Service, Matthias Hellstern, Managing Director, Corporate Finance Group, Moody’s Investors Service and Laura Perez Martinez, Associate Managing Director, Credit Strategy and Research, Moody’s Investors Service.
Host: Jeff Pruzan, Vice President - Senior Research Writer, MIS Research, Moody’s Investors Service.
To read more on this topic, visit the Oil & Gas topic page and The Russia-Ukraine Crisispage on Moodys.com (some content only available to registered users or subscribers).
