Our Blog
Yergin’s Prediction
According to a recent article in “World Oil”, Pulitzer Prize winning author, Daniel Yergin, thinks oil prices are near a bottom. Yergin, whose book The Prize is considered by many as the definitive history of the oil industry, thinks that falling energy investment will result in lower production. Concurrently, he sees consumption as growing, thereby… Read More
Majors React to New Normal
A recent article in “World Oil” cites a study of international major oil company results in the third quarter of 2015. The study, conducted by consultants, Wood Mackenzie, identified four themes with implications for 2016. These included weak financial performance, strong production, deep cost cutting, and stringent capital allocation, as companies adjust to the assumption… Read More
Sacrosanct Dividends
“Rigzone” reports that despite the crude oil price collapse and dramatic cutbacks in spending, the major international oil companies are either maintaining, or increasing, their dividends paid to shareholders. The majors are willing to fire workers, cancel drilling, postpone production and sell assets in order to raise enough cash to pay dividends. ExxonMobil Corp., the… Read More
$2 Natural Gas?
“World Oil” reports that an oversupply of natural gas, in conjunction with unseasonably warm weather, is driving natural gas prices toward $2 per Million British Thermal units. Prices have not been this low since April of 2012. Tim Evans, energy analyst at Citi Futures Perspective, observed that at these prices investment, drilling and production will… Read More
Whiting Writes Off Kodiak
“Rigzone” reports that Whiting Petroleum, the largest oil producer in North Dakota, has written off $2.57 billion in assets. $870 million of this write off relates to the 2014 purchase of Kodiak Oil for $1.55 billion. The write down of the Kodiak assets is surprising to many industry observers, as these were largely prime acreage… Read More
