Doug Swanson, managing partner at EnCap Investments LP, is prepared for a protracted downturn--as long as 24 months and possibly beyond. Companies should be prepared too, he said, by not having a high-leveraged portfolio, tightly managing drilling programs and focusing on areas other than the drillbit. Acquisitions could be a good area of focus, he said. In a downturn, companies can hang on to assets longer, which can be beneficial. This downturn, he said, feels different than the one in 2008 because supply issues surround it, but like 2008, it occurred steeply and quickly.
Recommended Reading
AI Advancing Underwater, Reducing Human Risk
2024-03-25 - Experts at CERAWeek by S&P Global detail the changes AI has made in the subsea robotics space while reducing the amount of human effort and safety hazards offshore.
AI Poised to Break Out of its Oilfield Niche
2024-04-11 - At the AI in Oil & Gas Conference in Houston, experts talked up the benefits artificial intelligence can provide to the downstream, midstream and upstream sectors, while assuring the audience humans will still run the show.
TGS, SLB to Conduct Engagement Phase 5 in GoM
2024-02-05 - TGS and SLB’s seventh program within the joint venture involves the acquisition of 157 Outer Continental Shelf blocks.
StimStixx, Hunting Titan Partner on Well Perforation, Acidizing
2024-02-07 - The strategic partnership between StimStixx Technologies and Hunting Titan will increase well treatments and reduce costs, the companies said.
Forum Energy Signs MOU to Develop Electric ROV Thrusters
2024-03-13 - The electric thrusters for ROV systems will undergo extensive tests by Forum Energy Technologies and SAFEEN Survey & Subsea Services.