Long way to go for oil recovery

It’s no wonder the Russians are trying to get oil-producing countries to meet and talk over curtailing oil production in an attempt to stabilise prices. So far only 0.1 per cent of the world’s oil production has been shut in due to the collapse in crude prices, according to global consultancy Wood Mackenzie.

This suggests there’s a long way to go before we might see any price stability, especially with big producer Iran set to join the free market following the lifting of sanctions.

At prices of $US35 ($49) a barrel, close to current levels, some 3.4 million barrels of oil a day cost more to produce than the revenues received from sales, the consultancy said. But fewer than 100,000 barrels a day (b/d) of production has been shut so far in this downturn as producers hang on in the hope prices will rise again.

The pressure is still building with oil recently testing t$US30 levels – prices not seen for the past 12 years.

And in case you’re wondering why cheap oil isn’t a good thing for world growth economy – it actually is – the main worry is how much exposure global banks have to the oil industry and what happens when those loans go bad.

HEIRESS OUR RICHEST PERSON

According to Forbes magazine these are Australia’s richest people

TOP 10 RICHEST AUSTRALIANS:

1) Blair Parry-Okeden, $US8.8 billion

2) Gina Rinehart, $US8.5 billion

3) Harry Triguboff, $US6.9 billion

4) Frank Lowy, $US5 billion

5) Anthony Pratt, $US3.6 billion

6) James Packer, $US3.5 billion

7) John Gandel, $US3.2 billion

8) Lindsay Fox, $US2.8 billion

9) David Teoh, $US1.95 billion

10) David Hains, $US1.9 billion

And if you’ve never heard of Blair Parry-Okeden you’re not alone. According to Forbes she is a reclusive American heiress, but long-time Australian resident and citizen. After her mother’s 2007 death she inherited a quarter of American media conglomerate Cox Enterprises which is obviously worth quite a lot especially when converted into Australian dollars.

BACKDOOR STILL OPEN

Last year saw a record-breaking number of backdoor listings,  with 50 companies taking this route to the ASX, up from 31 in 2014

FOREIGNERS TARGET AUSSIE DEALS

According to Dealogic total deals last year were worth $US129.8 billion ($177.7 billion), the highest annual volume since 2011.

With the Australian dollar crumbling in the second half of the year the focus was on Australian companies being targeted by offshore suitors, particularly with a rush of bids in the fourth quarter.

Outbound transactions by Australian companies also rose, totaling $US17.8 billion in 2015 from $US15.7 billion in 2014. That took total volume to $US147.7 billion, far short of the heady volumes of $US197.3 billion in 2007.

Completed deals fell to $US97.4 billion from $US101.2 billion in 2014.

The biggest deal was the NSW government’s $10 billion sale of of a TransGrid stake followed by BHP Billiton’s demerger of South32.

ALL’S SWELL IN MOSMAN

The Sydney suburb of Mosman, on the city’s lower north shore, has Australia’s highest combined neighbourhood income – a cool $2.71 billion in 2012-13. Not far behind was Double Bay-Bellevue Hill with collective earnings of $2.46 billion.

The Bureau of Statistics’ newly released Estimates of Personal income for Small Areas does not include tax-free income, including some income streams from superannuation. Government pensions and allowances were also excluded.

No wonder the Mosmanites don’t want to see their local council combined with those low rent types across the water at Manly.

Go Back