1. 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

  2. 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

  3. 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

  4. Mild Weather Working Its Magic on U.S. Natural Gas Prices and Storage Inventories

    Jose the Magician was doing his act when he tells the audience, “I will disappear on the count of three!”  “Uno!”  “Dos!”  …and he disappeared…without a “Tres." This reminds us of current spring weather natural gas demands — it has disappeared without a trace. Energy trading …Read More

  5. Major Factors of Onshore Production

    Q. Why did the man fall into the well? A.  He didn’t see that well. Makes us laugh every time. On the theme of wells, as you have read in our recent posts, oil producers continue to drill, baby, drill. That brings online the usually valuable, but sometimes nuisance issue of natural gas and how to…Read More

  6. A Closer Look at LNG – How the Natural Gas Markets are Now Much More Complex

    When trying to understand how a commodity is priced, the best foundation is from a fundamental perspective. Simply stated, when supply is above demand, prices fall and when the inverse occurs, prices rise. However, this equation gets exponentially more complex for natural gas when attempting to pars…Read More

  7. The Permian Is Going Major

    Both Chevron and Exxon announced that they are seeing plus-30% returns at the current strip in the Permian. Exxon announced that they can profitably drill at $15 oil, making their operation cost-competitive with some of the lowest cost supply regions globally. A major driver behind this activity is …Read More

  8. Oil, Gas and Liquids Winter Price Update

    Meet Us This Spring To Learn More About Mineral Value If you like excitement, the energy markets are not disappointing right now! Next-day gas deliveries that utilities are buying in the Northwest is currently trading for $150/MCF! Yes, you read that right! There's been lots of interesting price act…Read More

  9. Extreme Weather In The West Brings Extreme Prices

    The last week has had some very cold temps in the West and Northwest. This caused significant short-term pricing spikes in natural gas in the Rockies and other western hubs — $10 and higher! However, nationally, the futures prices continue to degrade into the mid $2 range for the summer. We still …Read More

  10. Late Summer Market Swoon, But Not In The Commodity You Think

    Crude oil has taken a major tumble recently from recent highs in the mid $70 range. Oil-rich royalty checks have already been impacted by the discount to WTI in most producing regions. Now with the WTI price decrease, the further value of royalty payments will see a reduction of 30-40 % over the com…Read More