Cheap Energy – Good for the Consumer, Bad for the Industry


Although consumers might be gung-ho to pay cheaper prices at the gas pump, the plunge in oil prices for oil and gas companies is far from exciting. With prices down by 50% from their height in 2014, these fluctuating oil prices will cause major shifts in mergers and acquisitions, as well as push oil companies to embrace innovations. More specifically, companies are going to look towards the real-time data collected from Internet of Things (IoT) to optimize processes and create efficiencies.
 
So, How Did We Get Here?
By the law of supply and demand, it was inevitable that oil and gas prices would drop. With Saudi Arabia as a driving force within OPEC, their push to continue oil production despite the falling prices led to a continuing oversupply of oil. As the Saudis strived to maintain their market share, they signaled they had no intent to cut back on oil production, even though the decreased supply would raise the prices. They feared that had they done so, they would lose market share to other oil producers, depreciating the Saudi influence within the market.
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How Technology Can Save the Day for E&P Companies


The Current State of Industry Debt
 
During the decade-long energy boom, U.S. E&P companies worked hard to boost their output substantially which in turn, also increased their debt loads. As the price of oil falls, many E&P companies are finding it difficult to profit on lesser performing wells and maintain their debt obligations. This has left most E&P companies attempting to line up billions of dollars in emergency financing ahead of potential rounds of cuts to their revolving loans.
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New Laws, Technologies Lead to Continuing Increase in Oil and Gas Litigation


The past few years have seen a dramatic increase in the number of unconventional oil and gas-related lawsuits, with Texas seeing the most activity, followed by Oklahoma, Pennsylvania, Ohio and Louisiana. New trends and areas of litigation have also emerged over the past few years, and industry participants will continue to confront the challenge of adapting to emerging and often differing state laws, as well as a continually evolving legal landscape as landmark cases are decided by the courts.
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Data Driven Models…The Tide of Opportunity


 

“There is a tide in the affairs of men which, taken at the flood, leads on to fortune; Omitted, all the voyage of their life is bound in shallows and in miseries.”
William Shakespeare (Julius Caesar)

 
It’s hard to escape the chatter about “big data”. Evangelists talk of volume, velocity and variety of data across business verticals and the impact that big data will have on traditional analytics. Certainly, surfacing trends and identifying relationships and correlations in a multivariate, multivariant and multidimensional system provides food for thought. But does big data without business context provide any knowledge that enriches upstream decision-making?
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