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M & A Revival
When crude oil prices first cratered, many industry observers predicted a flurry of merger and acquisition (M&A) activity as the industry consolidated. A recent article in “Rigzone” contends that this was because potential sellers thought that low prices were a temporary phenomenon and the offers that buyers were tendering were unrealistically low. Now that there… Read More
CO Fracking Initiative
Advances in horizontal drilling and hydraulic fracking made the shale revolution in the U. S. possible. Although fracking is a 1940’s technology, adapting it to shale formations enabled operators to exploit previously known, but uncommercial, reserves in areas such as the Bakken shale in the Williston Basin. Unfortunately, fracking is an emotionally charged issue. The… Read More
Zika and GTL
In previous posts I have talked about the overabundance of natural gas on the domestic market as a consequence of the shale revolution. This surplus gas has predictably led to low prices, which has in turn led operators to search for new markets. Pipeline sales to Northeast Canada and Mexico, liquefied natural gas exports, renewed… Read More
Venezuelan Production Downturn
The global oil glut has taken its toll on oil prices. Since 2014 the excess of production over consumption has fluctuated from 1-2 million barrels of oil per day (bopd). The response of oil exporting countries to stagnant prices has varied, but Venezuela has been among the least effective in coming to grips with the… Read More
Oil Price and Economic Growth
“Oil Voice” recently featured an article by Kurt Cobb entitled, “Oil Price and Economic Growth get Married”. The author points out that the conventional wisdom has always been that cheap energy meant economic growth. However, he asserts that this is no longer valid and presents his rationale. The conventional wisdom ignores the fact that during… Read More
