Oiling the Squeaky Wheels of Lower Prices

2016 will be the year oil companies have to figure out how to live with lower prices—or go bust. I predict that oil companies will hunker down and find innovative ways to weather the low price storm, which appears to be far from over.
The United States’ oil production boom was accompanied by a painful oil price bust in 2015, and the near future looks less than bright for oil exploration and production companies.
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Bankruptcy in the US Oil and Gas Industry

The ongoing oil and gas industry crisis is bringing companies to their knees as a result of stubbornly low prices. As recovery is elusive and unpredictable, strategies to aid distressed companies and prevent bankruptcy have to be realistic, proactive, and address the obvious capital structure problems while preserving the underlying business.
One persistent problem in the oil and gas world right now is the pricing crystal ball is partly cloudy and partly sunny – that is to say there is a high degree of uncertainty around which direction prices are headed and when. Options for dealing with financial crisis are made much more complicated when opinions on the future direction of oil prices are as diverse and plentiful as subaquatic plant life.
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Prediction? Pain

History may have been kinder to Mr. T had Dolph Lundgren not so badly overshadowed him.  Aside from a turn as the cuddly, milk-loving B.A. Baracus on the “A-Team,” Mr. T had a role as one of the best 80’s movie villains  as Clubber Lang in “Rocky III.”  When asked for a prediction from a reporter for the impending bout with Sylvester Stallone’s Rocky Balboa, Lang glares into the camera and growls, “Prediction?  Pain.”
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Six Predictions on How the Oil & Gas Industry Will be Further Transformed by the Digital Economy

The recent fall in commodity prices has hit upstream oil and gas companies hard, impacting cash flow and restricting their ability to continue investing in high-risk projects. There is a pronounced shift from volume to value as they focus more on increasing the efficiency of existing assets rather than developing new ones. And yet, technology adoption has fueled massive shifts in global demographics, wealth, and consumer engagement. To thrive in these trying economic times, and be strategically positioned to capitalize on future prospects, it is critical that oil and gas businesses invest in developing a technology infrastructure that provides sustainable operational improvements, captures best practices and creates connections throughout the entire ecosystem. [Read more…]