Our Blog
4Q16 Hedging Flurry
“Rigzone” reports that consulting firm, Wood Mackenzie, warns that hedging activity could exacerbate the global oil glut. Back in November of 2016, OPEC and 11 non-OPEC producers all announced their intention to cut back on oil production in order to reduce the world-wide surplus and improve prices. This drove oil prices up and many U.… Read More
VooDoo Economics
For some time now, shale operators have been patting themselves on the back for having brought down the break-even point on new wells to the extent that some domestic plays are among the most economically attractive in the world. Now, in an article in “Oil Voice” entitled “Shale Cost Reductions are 10% Technology and 90%… Read More
Majors Move to Shale
Shale has long been the realm of the independent oil companies. With the exception of ExxonMobil’s 2010 purchase of XTO Energy, the major oil companies stuck to megaprojects with massive capital budgets in remote or deep water locations, with long lead times, but decades of cash flow. Conversely, wildcatters like Harold Hamm and Aubrey McClendon… Read More
LNG Success
During the shale revolution operators were finding gas faster than traditional domestic markets could absorb it. Consequently, some investors saw LNG (Liquefied Natural Gas) exports as a lucrative opportunity. Liquefaction, transportation and regasification facilities are capital intensive and require long lead times for construction. While a number of projects are currently underway in the U.… Read More
Oil Deficit by Mid-Year?
The global oil glut has been with us for so long that we are starting to assume that it is part of the long-term energy landscape. This oversupply has hung like the Sword of Damocles over oil markets and is a strategic threat to any sustained improvement in oil prices. However, “Rigzone” reports that no… Read More
