Our Blog
The Hidden Cost of Low Prices
In a recent article entitled “Mineral Owners-Sitting Ducks for Bankrupt Oil Companies”, author and Certified Appraiser, Terrel Shields, points out the obvious and not so obvious downsides for royalty owners in a depressed oil market. Obviously, when the price of oil falls by 50% or more, your royalty check will decrease accordingly. Not as readily… Read More
Pioneer’s Take
Earlier this month Pioneer Natural Resources CEO and Chairman, Scott Sheffield, addressed the S&P Global Platts Benposium. “Rigzone” reports that over the five industry downturns throughout his career, the major lesson he has learned is that debt is toxic in the oil and gas industry. Sheffield opined that the industry needs to shed $100 billion… Read More
Funding Gap
A recent article in “World Oil” cites a study by international accounting and consulting group, Deloitte, which found that the global oil and gas industry has cut back on capital expenditures (CAPEX) to the point that current reserves and production cannot be maintained. Historically, about 80% of CAPEX has been spent to replace proved reserves.… Read More
Biggest Oil Importer
The title of “World’s Biggest Oil Importer” is a dubious distinction, but one which the U. S. has long held, according to a recent article in “Rigzone”. However, our perennial claim to the title is being threatened by China. In fact, in April of 2015 when U. S. oil production peaked and our imports fell,… Read More
IEA Update
“World Oil” reports that the International Energy Agency (IEA) now predicts global supply and demand being almost in balance by the end of this year. The current oversupply is much smaller than originally estimated, production is lower than anticipated, and demand stronger. The Agency now sees the global oil glut as about 40% smaller than… Read More
