Is the Oil Market Really Great Again?
Last year, oil demand contracted nearly 9 MMbbl/d as the global economy locked down under the COVID-19 siege. Oil prices swooned. The OPEC+ group responded with record cuts in output. With no one to sell to and facing increasing storage costs, non-OPEC producers shut in barrels, too. These curbs in supply alongside a partial rebound […]
Volatility Ahead: Freezing Cold Sends U.S. Power Prices Higher
A fast-evolving cold weather system from Canada has cast a major arctic front across the northern, central, and southern plains. The series of storms is expected to hold strength through early next week. Forecasts predict the potential for record demand in ERCOT and SPP through early next week. Both regions are regularly exceeding their day-ahead […]
Key Themes Heading Into 4Q20 Earnings Season, Outlooks for 2021
Despite higher oil prices, early indications from operators suggest that E&P capital expenditures will look similar to 2020. Figure 1 demonstrates the wide array of capex adjustments from 2020, yet collectively flat year over year. With free cash flow the focus of many investors, we may see more commodity price-dependent plans this year as some […]
Build or Buy? How to Invest in Forward Curve Risk Management
Now that market phenomena like negative crude futures and even equity volatility bonanzas like GameStop are increasingly commonplace, chief risk officers are living their best lives. The limelight has never shined so brightly on risk management. I know I am not alone in my rubbernecking to watch the newfound stock market trading craze from the […]
Simplify Joint Interest Billing Processes With OpenInvoice and EnergyLink Integration
ACCESS DEMO Thelma and Louise, Chewbacca and Han Solo, the Blues Brothers…these are just a few famous dynamic duos from the big screen. Dynamic duos are fun to watch in the movies because they work better together. via GIPHY Like these big screen duos, Enverus is excited to launch its own dynamic duo […]
Colorado Political Headwinds
While discussion of political and environmental headwinds for the oil and gas industry is not new, the conversation grows louder with mounting scrutiny under a new U.S. political regime and an investor community that demands corporate and environmental responsibility. The implementation of a new state-level bill in Colorado challenges operators to remain competitive while adhering […]
Associated Natural Gas in the Permian – Friend or Frenemy?
For years associated natural gas from oil production in the Permian Basin has been viewed as a byproduct with little monetary value. Infrastructure constraints and challenged pricing caused many operators to flare produced gas rather than capture and sell it. With significant egress capacity additions out of the Permian and gas prices expected to stay […]
What is a Forward Curve? A Beginner’s Guide (Part 1)
The industry that drives global commerce and ensures our highest standards of living is underpinned by the complex and fascinating world of commodity trading. Without commodity trading, our lives would be vastly different. The exchange of physical commodities like crude oil, natural gas, metals and power guarantee that we can do everything from turning the […]
Reduce Your AP Workload by Half in 2021
As we kick off a new year, energy companies are running leaner than ever. A major goal is to focus on minimizing the necessary cost or effort expended. If your company is trying to figure out how free up your staff’s time or just manage a heavy workload, the number one action we recommend is […]
A Modest Proposal for Small Operators
COVID-19 Focused Investments: Publicly Traded Companies Investor demands for showing free cash flow and capital discipline have been met with oil and gas public equities tamping down their capex spend, hunkering down to wait for WTI to appreciate enough to start completing DUCs and bringing their supplies to market, and consolidating in mergers or […]