The exponential increase in flaring for economic reasons has become the prime mover in the current natural gas flaring discussion. For instance, from 2010 to 2019 the Texas Railroad Commission reported a 20X increase in flaring permit applications, going from approximately 300 in 2010 to 7000 in 2019. Those are...

Natural gas flaring is a topic that captured everyone’s attention over the past few years, and with good reason. Estimates vary, but here are a few numbers that seem to grab everyone’s attention: 1. Texas flares the same amount of natural gas as it uses residentially. Restated, the amount we use...

What does this mean for mineral owners? 1. If your mineral holdings are outside of the Permian and core areas of the Eagle Ford, Bakken, Marcellus, and Haynesville, be patient. Should the pandemic carry on in full force longer than expected – through 2021 – those mineral owners outside of the...

Wildcards As it stands, a prolonged pandemic stretching across 2021 is likely to lead to significant consolidation and concentration in the domestic oil and gas industry. What could change that? A. Capital flight leads to new financing mechanism The present private equity model that has driven so much of the growth in private...

Any forecasts about what is coming in the next weeks and months for the energy markets has to begin with the disclaimer that things remain fluid. With significant unknowns surrounding the incoming US presidential administration policies, the vaccination pace in Western countries, and OPEC+ moves, yesterday’s gains could easily be...

Who Would Benefit? A. Companies Positioned to Acquire Companies with a strong balance sheet and top-tier operational capabilities could stand to profit from a prolonged exposure to the pandemic market. Following a general lock-up in the market from March to July, Chevron’s acquisition of Noble Energy ushered in a series of acquisitions...

A couple of recent Rystad Energy reports have provided some surprisingly positive news emerging from a tough year for the oil and gas industry. Greenshoots of Profitability We’ve had a lot of records set in 2020, most of them negative. Time for good news as we close out the year. Based...

1. Less wells = less production = less cash flow The ability to immediately reduce drilling provides operators short-term relief in terms of cost-savings; less money is going out the door. However, due to the short-cycle nature of unconventional oil and gas development, a dramatic drop in drilling will in short...

1. Depressed demand leads to a stagnating price. Despite historic demand destruction both in terms of speed and scope, oil prices have stabilized at approximately 70% of their previous levels from 2019. As stated previously, the coronavirus has not materially impacted the supply side of the oil and gas equation...