Chicago Tribune: Europe's oil titans are latest shale victims amid rout

The U.S. shale-oil industry has made another enemy: Europe's largest crude explorers. Standard & Poor's Ratings Services revised its outlook to negative for Royal Dutch Shell, Total and BP as the oil-market rout driven by weakening demand and a flood of supply from American shale fields threatens cash flow into 2016.

The credit-rating company also cast a dim eye on Houston-based ConocoPhillips, saying it's facing similar cash flow pressure, and said it may cut the ratings on Eni and BG Group's BG Energy Holdings. S&P cited "the dramatic deterioration in the oil price outlook" and the 50 percent increase in debt loads for the biggest European oil producers since the end of 2008.

Oil has slumped about 21 percent since the Organization of Petroleum Exporting Countries decided against cutting its production target last month. United Arab Emirates Energy Minister Suhail Al Mazrouei said non-OPEC suppliers should cut "irresponsible" output. Prices of Brent, the European benchmark crude, have fallen about 45 percent this year, setting the stage for the largest annual drop since 2008.
MORE