OGI This Week
Off balance: Drilling techniques used in the shale boom have altered the balance of oil and gas supply and demand. Yes or no? FTI Consulting recently polled more than 1,000 by phone on whether they support exporting crude oil. Key resource: "The ultimate key to survival" in an oil price downturn is "good rock," according to the CEO and chairman of Magnum Hunter.
How Can We Help? Seasoned private-equity providers discuss ways they can help provide capital in the current price environment. Necessary Ingredients: Time, effort and capital combine to create successful LNG value chains, according to experts at Hart Energy’s recent World LNG Fuels conference. Speculation: There could be a 50% reduction in Marcellus-Utica activity levels, according to Enlink Midstream Partners’ CEO.
Q&A: The University of Houston’s chief energy officer discusses the school’s involvement in leading the Subsea Systems Institute for deepwater disaster prevention. No. 1: The oil price decline pushes technology to be the highest-ranking investment for the first time above energy, Houston’s high-net-worth investors say. Keeping Up: E&Ps “will work through the factors standing in the way of production cutbacks,” according to a study.
Money: Several banks with $1 billion or more in assets are “among the most at-risk” for lower lending if oil prices stay low, a report said. Chatter: The commodities market and OPEC were among topics oilman T. Boone Pickens discussed on Twitter with “legions of Twitter followers.” Valuable: Patent assets remain underutilized, but executives are starting to realize they can use them to “unlock financial value.”
Stable: The Middle East will not experience the same decline in exploration and production spending as the rest of the world, a recent survey indicates. Trending: Which North American wells have peak rates greater than 1,000 barrels of oil equivalent per day? An analyst recently explored this trend. Possible Decline: “Early signs” of a spending slowdown included the drop of 118 rigs “over the past six weeks,” an analyst said.
Secure: Industry knowledge that is considered valuable exists in ‘the marketplace and the commercial sector,’ a senior consultant said at a recent cybersecurity conference. In Favor: Jack Gerard, head of the American Petroleum Institute, recently spoke in favor of approving the Keystone XL pipeline. Timing: Mergers and takeovers could be well-positioned in a down market for acquisitions and divestitures.
Cutting Back: ‘Billions of dollars’ are off the budgets of many small- and large-cap E&Ps for the new year. Follow The Rules: New regulations for tank cars and wellhead requirements will impact profitability of North Dakota crude oil, analysts say. Legislation: ‘Lack of federal regulation’ of hydraulic fracturing in a Republican Congress ‘is a plus for E&P companies’ according to a report.
Upcoming: The Vail Global Energy Forum will partially focus on North America’s development as ‘an energy powerhouse,’ said founder Jay Precourt. Advantage: Lower commodity prices in 2015 might give private equity a ‘competitive edge’ over public companies. Seaworthy? Between 2014 and 2020, $60 billion will be invested in floating LNG projects worldwide. Will it be successful?
Dear Readers, Here’s the rundown of features in your issue of Oil and Gas Investor This Week. Patching Up: Looking toward 2017, analysts said that slower production will cure the market of oil price ills. Cutting Back: Domestic exploration and production companies are slashing budgets on crippled commodity prices. Not Enough? What could possibly be bad about Texas having the largest concentration of construction workers in the U.S.? Also, please nominate deserving individuals for Oil and Gas Investor’s 30 Under 40 special section! Follow the link to submit nominations using the submission form: http://www.oilandgasinvestor.com/form/30-under-40. The deadline for submissions is April 3, 2015. In observance of the holidays, Oil and Gas Investor This Week will not publish Christmas week. But we’ll be back the following week. Enjoy the holidays, and happy reading. Erin Pedigo, Editor, Oil and Gas Investor This Week email@example.com
Oil Price Drop: ‘Well-positioned’ midstream companies like Kinder Morgan could see investment opportunity. Tracking The Numbers: The EIA projects that by 2018 or 2019, oil production will total 13 million barrels per day. Deceleration: Acquisitions and divestitures could slow down on lowered oil prices, according to analysts.
Leading The Way: The Permian Basin is ‘well positioned to rekindle the market’ for IPOs, according to an analyst. The Game Changer: Operators can leverage predictive analytics to ‘become more efficient’ and have ‘improved production.’ Looking Ahead: Mexico is considering undertaking construction projects that will support LNG exports.
Oil and Gas Investor This Week