Oil and Gas Debt Crisis: Quick Onset but No Quick Fixes

While the general population enjoys lower gasoline prices at the pump, the impact to the oil and gas industry in this country, and its implications for our broader economy, is likely much worse than the public realizes.
U.S. oil and gas debt has surpassed the $100 billion mark and is quickly approaching $200 billion. While many in industry anticipated future impacts from overcapacity and inadequate infrastructure, very few expected this most recent price collapse to happen so soon and to progress so quickly. The fundamentals for industry were very different six weeks ago and now interested parties are scrambling to reposition themselves.
[Read more…]

Despite Cheap Oil, Energy Sector Provides Opportunities

The energy sector has been dominating the headlines due to the dramatic drop in the price of crude oil in the later months of 2014, as global supply currently is exceeding demand. As is often the case in the short term, the market did not necessarily decipher quality, and stocks across the energy value chain were affected. As of February, the energy sector is the cheapest sector in the S&P 500.
[Read more…]

Beyond Commodity Prices – The Story on Midstream Oil & Gas Opportunities in 2015

The latest news covering the oil and gas market for 2015 focuses almost entirely on the detrimental effects of low prices on exploration and production, making it easy to miss the bigger picture. Just as the fluctuations of the stock market do not reflect the entire state of the US economy, commodity oil and natural gas prices do not tell the whole story of our industry. Even in the face of a 50% drop in the price of a barrel of oil, and a reduction in natural gas prices, opportunities still abound for investment, especially in the midstream segment.
Since 2007, previously non-productive shale reserves have come online to unlock a wealth of new oil and gas supplies. However, the resulting surge of shale-related production revealed deficiencies in both the quantity and condition of our existing infrastructure used to bring these products to market.
[Read more…]

Cold Winter Temperatures Give Rise to a Hot M&A Market for the Canadian Oil and Gas Sector

It was the biggest deal of 2012: Chinese state-owned firm CNOOC Limited’s takeover of Calgary oil and gas producer Nexen Inc. Although there were a total of 260 deals closed over the course of the year, it was CNOOC Limited’s CDN$14.95 billion transaction and another megadeal — PETRONAS’ CDN$5.5 billion acquisition of Progress Energy — that helped lift 2012 transaction values to approximately CDN$49.5 billion.
[Read more…]