Our Blog
Bankruptcy and Mid-Stream Contracts
“Rigzone” reports that New York bankruptcy judge, Shelley Chapman, recently ruled that distressed exploration and production (E&P) companies can renegotiate their contracts for transportation and treatment services with midstream companies. This is a departure from what has been accepted industry practice. Previously, contracts between E&P operators and midstream companies to transport and process hydrocarbons from… Read More
LNG Growth Factors
With plentiful reserves and prolific wells that readily meet any increases in domestic demand, natural gas prices remain relatively weak. Liquefied Natural Gas (LNG) exports represent a new market for an abundant resource and hopefully will lead to stronger natural gas prices. Investors were quick to respond to the opportunity presented by LNG. Many projects… Read More
Supply Disruptions
“World Oil” reports that Australia and New Zealand Banking Group Ltd. (ANZ) sees supply disruptions sustaining the recent recovery in crude oil prices. With almost 2.5 million barrels of oil per day (MMbopd) removed from the global supply stream, and sustained demand, ANZ is currently bullish on oil. In fact, analyst Daniel Hynes thinks that… Read More
Shrinking Surplus
Many industry observers, including myself, were skeptical when oil prices began their recent modest rise. It appeared that the tentative price recovery was driven by wishful thinking on the part of speculators rather than market fundamentals. Admittedly, domestic production was falling, but offset by OPEC increases, thereby doing little to affect the global oil glut… Read More
New Bankruptcies
According to a recent article in “World Oil”, it appears that oil’s recent surge past $45 per barrel is too little, too late for many oil and gas companies. Since the start of 2015, 130 North American operators and service companies have filed for bankruptcy owing almost $44 billion. In addition to these, Chaparral Energy,… Read More
