1. WTI At Its Lowest Point In Nearly 20 Years

    WTI (West Texas Intermediate) has fallen to a near 20-year low. On March 18th, just a few days ago, the price of WTI crude went down to $20/bbl. The last time prices were in this range was back in 2002. Since the Corona Virus has sent nearly all global travel to a screeching halt. This virus has dea…Read More

  2. Below Breakeven, the Industry after a Price Collapse  

    We have spoken at length on the fundamental balancing act that drives commodity prices – supply and demand. Earlier this month the industry experienced 2 simultaneous black swan events that hit both sides of this equation. First, COVID19 knocked off a major amount of demand for oil (5-6mm bbl/d) a…Read More

  3. Oil-to-Gas Ratio Expected to Increase Further: How Gas Companies are Preparing

    The oil-to-gas price ratio has hit its highest point in six years. There’s no doubt about it, the market is certainly going through a change. Recently, the level of oil-to-gas ratio reached 30-to-1 and is expected to increase further. With this ratio, analysts are expecting the average price of ga…Read More

  4. When the Going Gets Tough, the Financing Gets Creative 

    It is no secret that the energy industry has gone through massive fundamental changes over the past decade. Some of the consequences of these changes are yet to be realized. With the advent and rapid adoption of shale drilling, massive amounts of debt were raised to put the technology to work in pla…Read More

  5. The Other Side of the Coin – High Grading Acreage and Well Productivity

    This summer, a popular theme in the industry, when speaking about macroeconomic trends, is the question of well productivity declining. The basic theory is in two parts. The first comes from the last commodity price collapse of 2014, when producers decided to drill only their most productive acreage…Read More

  6. The Impact of a Potential Industry Slowdown

    We have spoken before about institutional money (Wall Street) pulling back from investing and making loans in the oil and gas space. This is due to a need for producers and ancillary companies to operate with positive profit margins. Before the finance pullback, you did not necessarily need to be pr…Read More

  7. Traditional Bank Finance Becoming Unattractive and Unavailable for E&P

    Independent producers and mineral aggregators have always been in the market for unique finance solutions. Recently, however, traditional banking alternatives have become less attractive. In March, law firm Haynes and Boone LLC released their Spring 2019 Energy Roundup. In it, they discuss the shift…Read More

  8. Oil Prices Are on the Move – Discussing Supply, Demand, Iran and OPEC

    United States oil prices are rallying thanks to an unexpectedly large draw (12mm barrel draw versus a 2mm barrel forecast) in oil inventories this week. Not to be forgotten, Iran and the Middle East weigh heavily on the mind of global crude traders as well. Touching $59.93 today, the U.S. benchmark…Read More

  9. Bottlenecks on the Horizon

    I am writing this from the Florida Keys right now waiting for the wind to die down so I can go fishing offshore. Generally, when that happens, the only thing that brings solace is a cold bottleneck. Unfortunately, the bottlenecks that we will be focusing on today can bring a lot of pain to oil and g…Read More

  10. West Texas Gas Prices Under Pressure

    I am not an optimist, but hopefully one day I will be. With West Texas gas prices still under pressure, the timing of new natural gas pipelines from the Permian remains critical. This increased take away gives the optimist hope. However, questions remain if this will be enough to offset the increase…Read More