OPEC + Cuts: Credit Where It’s Due
OPEC’s oil market balancing challenge got tougher and more complex over the past two decades. The organization cut oil production in the face of the 2008 financial crisis, the surge in U.S. liquids growth and most recently the COVID-19 crisis. The scale of OPEC cuts required to balance the market through these crises has risen […]
DUCs Thin the Bill
During the height of the downturn in May, rigs and completions crews dwindled quickly – completion crews dropped over 85% while the rig count dropped 60% in just three months. That disconnect helped create a large accumulation of drilled uncompleted (DUC) wells as E&Ps waited for higher prices before completing wells and turning them sales. Operator […]
Surviving the Oil Downturn By Outsourcing Business Processes
Request Info As operators strive to streamline costs and operations, business process outsourcing (BPO) proves effective in meeting these demands. BPO is when one company hires another company to perform some of its essential work processes. BPO processes typically fall into two major areas — back office and front office processes. Back office processes are the […]
Sharks in the Water—Part 3
“Dice are rolling, the knives are out …” In this week’s blog, we’re highlighting two more “sharks in the water”—companies with solid balance sheets, long-term growth strategies, and cash to spend on acquisitions from stressed rivals during these stressful times. In Part 2 of this series, we highlighted Total, which we see as an […]
Sharks in the Water—Part 2
“Dice are rolling, the knives are out … ” In this week’s blog, we will highlight a new “shark in the water”—a company with solid balance sheets, long-term growth strategies, and cash to spend on acquisitions from stressed rivals during these stressful times. Last week we discussed Shell, which we believe has both the […]
Sharks in the Water
“Dice are rolling, the knives are out … ” Oil’s recent price implosion, resulting from the double whammy of OPEC’s early March failure to agree on further production cuts with Russia and demand destruction in the wake of the global coronavirus pandemic, has left the global oil & gas exploration business reeling. Subsequent OPEC++ cuts […]
The Week Ahead For Crude Oil, Gas and NGLs Markets – May 4, 2020
[contextly_auto_sidebar] CRUDE OIL June WTI settled at $19.78/bbl last Friday, up 17.5% from last Monday’s open. Prices were supported by smaller-than-expected US inventory builds as well as early indications that production cuts are beginning to take effect globally. Despite the recent easing in the rate of inventory builds, physical markets still remain oversupplied. Supply pressures […]
The Week Ahead For Crude Oil, Gas and NGLs Markets – April 27, 2020
[contextly_auto_sidebar] CRUDE OIL Crude oil futures started the week off on poor footing, with May WTI falling into unprecedented negative territory Monday, two days before contract rollover, and June WTI trading in the low teens that morning. The US Oil Fund, a large exchange-traded fund that invests in crude oil futures, announced that it would […]
The Week Ahead For Crude Oil, Gas and NGLs Markets – April 20, 2020
[contextly_auto_sidebar] CRUDE OIL Front-month WTI futures settled at $18.27/bbl on Friday, an 18-year low. Since then, WTI has fallen to $10.85/bbl as futures converge with spot prices close to expiry. The unprecedented contraction in global oil demand threatens to fill all available storage capacity in the US, and shut-ins are already beginning to materialize. Last […]
The Week Ahead For Crude Oil, Gas and NGLs Markets – April 13, 2020
[contextly_auto_sidebar] CRUDE OIL Front-month WTI futures ended last week on a low note, with the May contract settling on Thursday at $22.76/bbl compared to last Monday’s open of $26.09/bbl. This weekend’s historic OPEC+ agreement to take 9.7 MMbbl/d off the market starting May 1 was largely in line with market expectations, prompting a fairly muted […]