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Shifting LNG Economics
The shale revolution flooded the domestic natural gas market with large volumes which in turn led to stagnant prices. Consequently, U. S. gas producers have long seen Asian LNG markets as a highly lucrative alternative. Predictably, a number of LNG projects were approved and are under construction. “World Oil” reports that the Chenerie Energy Inc.… Read More
Alta Mesa Partners
The dramatic and sustained collapse of oil prices is exacting an especially heavy toll on smaller exploration and production companies. As hedge contracts, which locked in higher prices, expire cash become harder to come by. One way to generate cash is through asset sales. Another is through reserve-based lines of credit. This involves the operator… Read More
More with Less
Oil rig counts and capital budgets have always been a leading indicator of production levels. While this is still true, a recent article in “World Oil “ contends that the correlation might be changing. The U. S. oil rig count has dropped 59% from its peak last year, but production has fallen only 5%. This… Read More
Moody’s Downgrades Majors
“Rigzone” reports that bond rating agency, Moody’s Investor Service, views the major international oil and gas companies negatively. Citing continued low oil prices through 2016, and its impact on revenues, the company lowered its outlook for almost all the sector. Moody’s noted that since the oil price collapse, companies such as Shell, ExxonMobil, and Total… Read More
Drilling Permits Down in TX
Rigzone” reports that according to Railroad Commission data for August, drilling permits in Texas are dropping along with oil prices and rig counts. Since the same month last year, the number of drilling permits has fallen by 65% to 864. This breaks down to 222 oil wells, 59 gas wells, 518 oil or gas wells,… Read More
