Trefis Energy Sector Notes This Week

There has been a lot of noise surrounding the solar industry, which has seen some drastic changes over the past few months. We are currently revisiting our price estimates for these companies to reflect the latest outlook for the industry.

Some other Trefis notes in the energy sector this week

Solyndra Bankruptcy Could Spell Trouble For First Solar.

Among these, First Solar (NASDAQ:FSLR) may find it more difficult to secure federal loan guarantees in the aftermath of the Solyndra Bankruptcy, which raised questions about the loan guarantees extended by the Department of Energy to firms in the renewable energy sector. Solyndra became the latest solar module manufacturer in the U.S. to declare bankruptcy as companies are struggling with demand reduction and competition from cheaper Chinese firms. See also Solar Stocks Roundup: Worsening Conditions Weigh on Shares.

OECD Cuts Oil Demand Forecasts as Views on Oil Stocks Diverge

The International Energy Agency (IEA) has scaled back its forecast for growth in demand for oil to 0.7 mb/d for this year and 1.4 mb/d for 2012 on the back of increasing uncertainty in the global macroeconomic environment . The OECD watchdog is revising its figures in the wake of a reduction in GDP growth estimates for industrialized nations. The bearish view was reinforced by OPEC, which has revised its demand forecasts for this period as well.

Slumberger Benefits as Iraq Looks to Auction More Fields

Iraq will likely be a major market for oil services firms such as Schlumberger (NYSE:SLB) over the next few years as the nation embarks on an ambitious plan to expand its oil production facilities. In its latest move, the country’s Petroleum Contracts and Licensing Directorate is expected to make a pitch to companies to participate in its latest round of auctions that will be held in mid-December this year.

Report Divides Blame for Spill Between BP, Contractors

BP (NYSE:BP) saw its stock rise by 5% on Wednesday as the Bureau of Ocean Energy Management, Regulation and Maintenance released its report on the causes of the Macondo blowout that resulted in the death of 11 personnel on board of the Deepwater Horizon and the discharge of approximately 5 million barrels of crude oil into the Gulf of Mexico. ^[1] While holding BP responsible for some of the decisions that led to the blowout, the report also shed some light on the lack of regulation and the role of BP’s contractors Transocean (NYSE:RIG) and Halliburton (NYSE:HAL) in the disaster.

See more analyses

1. Report Rips Firms, Oversight, The Wall Street Journal [↩]