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Consolidation Deferred
When crude oil prices first collapsed, many industry observers predicted an energy industry consolidation characterized by a large number of mergers and acquisitions (M&A). A recent article in “Rigzone” deals with the reasons why this has not happened. First, shale operators are enjoying unanticipated access to capital markets. Second, would be parties to M&A activity… Read More
Whiting Sells Shares
In what appears to be an emerging trend among shale operators, Whiting Petroleum Corp. announced its intention to sell up to 40.3 million shares in order to raise $1.9 billion, according to a recent article in “World Oil”. The proceeds would be used to reduce short term revolving debt, much of which was incurred to… Read More
The Saudis on Shale
“World Oil” reports that at a recent conference in Riyadh, Saudi Arabia’s representative to OPEC, Mohammed al-Madi, opined that the price of crude oil will not reach $100 per barrel again. He reasoned that at that price more shale oil and output from other high-cost producers would re-enter the global market. The price of crude… Read More
Commissioner Ryan Sitton’s Remarks
Last week Texas Railroad Commissioner Ryan Sitton addressed the March meeting of the Houston Association of Professional Landmen. His presentation, and answers to subsequent questions, proved quite interesting. Sitton observed that the vast majority of those of us working in the energy industry are relatively uninvolved politically. While most of us vote, even in primaries,… Read More
Rig Count Drop
“World Oil” reports that while the oil rig count continued to drop for the 15’th straight week, the most recent decrease is relatively small at 41. Oil production and inventories continue to increase, but at a decreasing rate. James Williams, president of WTRG Economics, observed that “While we’re still going to see declines on a… Read More
