Three events in early February reminded me of the variety inherent in the global oil patch and the interplay of macro-geopolitical factors that affect players large and small. At NAPE, more than 12,000 people mingled to view some 1,250 booths of drilling prospects, producing assets and capital providers. So many attended the international forum the day before that additional tables had to be set for lunch, where Canadian officials spotlighted their E&P opportunities. The following week, Cambridge Energy Research Associates marked its 25th CERAWeek in Houston with appearances by the head of CNOOC, Saudi oil minister Ali Al-Naimi and other notables. They discussed how to increase oil supply and reduce demand. But alternative fuels began to get more attention as well. The same week in Florida, the Independent Petroleum Association of America held its Small-Cap Oil & Gas Investment Symposium. Small producers (whose market caps ranged from less than $50 million to $1 billion) told 300 investors and analysts why it's not too late to jump on the bandwagon. Frankly, that bandwagon is getting so crowded it could end up in the ditch. Energy bankers at the event marveled at oversubscribed offerings closed in less than 48 hours. CEOs strained not to sound overly optimistic as their stock prices outran net asset values. "We're a small company on steroids, with big-company discipline and experience" said Richard Dole, chairman, CEO and president of PetroSearch Energy Corp. Formed in 2003, it began trading on the OTC Bulletin Board last November and acquired an interest in the expansion area of the Barnett Shale recently. For most of the 40 presenters, the future is tied to unconventional resource plays: tight gas, shales, coalbed methane. For more on this, see the March issue of Oil and Gas Investor. For a subscription, call 713-993-9325, ext. 129.
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