Problems Oil Executives Face – Finding Alternative Ways to Unlock Capital


Drill the well.  Complete the well.  Produce the oil.  Sell the oil.  Make a profit.
 
These are normal activities that happen every day in a producing oil and gas company.  When oil is $100 and the cashflow is growing, all stakeholders are satisfied.  So what happens when oil drops to $30?  Not as many wells are drilled, not as much oil is produced and not as much profit is made.
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Problem in the Oil Patch – Oil, Oil Everywhere


With the world awash in oil, the problems that it brings become ever more evident.  With prices dropping precipitously, profitability goes down with it.  With more product chasing smaller demand, it produces an ever increasing price spiral downward.  As companies and Countries continue to produce, as produce they must, they are caught in this trap.
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Will Falling Oil & Gas Prices Finally Force a Sell-Off?


Unlike the record setting pace of global energy sector M&A in 2014, those expecting falling commodity prices to spur new records for deal-making in 2015 were, on the whole, disappointed.  2015 started off strong, but in the end, the year will be remembered as a year of hunkering down to wait out the storm.  Commodity price volatility and valuation uncertainties for US E&P companies combined to produce strong headwinds for takeover activity, in spite of the impetus for acquisitions from historically low oil prices.  While the US energy industry saw a number of high profile mega-consolidations, equity markets responded unfavorably to acquisitive E&P companies, and although the first half of 2015 saw record levels of consolidation in the midstream, even that deal flow eventually slowed to a trickle by the end of the second quarter.
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Saudi Arabia: At the Brink of Falling into Economic Quick Sand


For the first time since they became a world oil producing powerhouse, Saudi Arabia is facing intense and challenging pressure simultaneously from several areas that threaten not only the citizenry’s way of life, but its critical role in an increasing hostile region as well as globally.
 
The dynamics of world energy and the Middle East are changing rapidly and fundamentally. Although the new Saudi leadership has aggressively undertaken measures to meet those challenges, these may be too little, too late.
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