The Domestic Oil & Gas Industry’s Current Debt Problem – A New Chapter of an Old Book

The price of oil has dropped precipitously to half its June 2014 peak. Natural gas prices have experienced a similar recent collapse. The oil and gas (“O&G”) industry has continually demonstrated a “boom and bust” market dynamic. The failure to manage through periods of low prices can result in disastrous consequences. Unfortunately, the recent dramatic increase in debt load has compounded the problem. A complete understanding of the challenges presented by price volatility and proactively implementing appropriate solutions to address these challenges are critical to surviving in the current environment.
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‘Here We Go Again’: Oil and Gas Sector to Face New Regs in 2015

Tracking regulatory changes in the oil and gas industry is no minor undertaking. After all, when someone speaks of “the oil and gas industry,” that person isn’t simply referencing some narrowly defined zone of activity; instead, the term points to a wide and multi-faceted collection of distinct operations that make up the total process of delivering natural resources from ground to market. These activities—all of which are covered by distinct and ever-evolving regulatory frameworks of their own—include manufacturing, geological services and oil-field services, to name just a few. Consequently, at any given time, the collection of different laws and regulations that could potentially affect this broad industry is quite expansive. It is thus impracticable to cover all potentially important regulatory changes on the horizon in this column. Below, however, are a few specific laws and/or enforcement-related activities that oil and gas companies should be aware of in 2015.
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Energy 2015 – Five Developments to Watch in the US and Beyond

What does 2015 have in store for the energy industry? Making predictions is always a difficult proposition, and trying to predict the price of crude is a daunting task. As they say, if you are going to forecast, forecast often.
But looking back on events and activities this past year gives us some comfort to forecast the trends and “big picture” happenings that we’ll likely see in 2015. So, here are my thoughts on the top five energy industry developments to be aware of next year – regardless of whether the price of crude oil goes up or down:
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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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Petroleum: A Magnificent Material Much Maligned

The use of petroleum is under attack as never before in today’s society. But contrary to the cries of critics, petroleum and the things people can do with petroleum are a modern miracle and a foundation of modern society.
Last year, the Intergovernmental Panel on Climate Change of the United Nations called for the world to move to “near zero emissions” of carbon dioxide by the year 2100. President Obama has threatened to veto the Keystone XL pipeline bill. Activist Bill McKibben has launched a national effort to persuade universities and colleges to divest financial holdings in oil companies. These efforts target the oil industry with the aim of eliminating the societal use of petroleum.
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