Dan Eberhart, CEO of Denver-based service company Canary LLC, spoke candidly with Hart Energy’s Jessica Morales about the role oilfield service providers can play as oil and gas producers work to manage the new price environment.
“To the extent [service providers] can get skinnier with our pricing, I think that helps [operators] keep drilling,” he said. “Also, I think us [service companies] just being around on the other side of this is going to be helpful.”
Overall, Eberhart said the industry will get through this, adding: “There will be an oil boom at some point. ... That’s the history of this industry. Service companies being around are what will make that possible for the oil companies on the other side.”
Additionally, Eberhart spoke on his decision to testify against prorations during a Texas Railroad Commission public hearing on April 14. “I think it's a bad idea,” he explained. “I understand where Commissioner Sitton was coming from but I am a big believer the free market will solve and the free market will frankly get there quicker.”
Texas Railroad Commissioners erred on the side of caution April 21, opting at the moment not to force oil companies to collectively cut 20% of their production. Instead, regulators said they will take time to consult legal counsel, get unanswered questions answered and meet with other oil-producing states and countries battling today’s oil market crisis.
Bill Marko, managing director at Jefferies, says he sees permanent changes to the U.S. shale business resulting from the destruction to oil demand over the past several months.
Additionally, EQT decided to temporarily curtail approximately 1.4 Bcfe/d of gross production, equivalent to roughly 1 Bcfe/d of net production.
Houston-based WaterBridge Resources agreed in late February to acquire Centennial Resource Development’s Permian water assets in a $225 million transaction that was expected to close at the end of the first quarter.