As the energy industry finds itself in survival mode, Jim Wicklund, managing director of energy investment banking at Stephens Inc., spoke with Hart Energy’s Jessica Morales to discuss what he is seeing oil and gas companies turn their interests to plus a motivating message for the industry.
“Understanding that there will be an industry coming out the backside of this, I think that is the thing to focus on,” Wicklund said. “I know it’s hard for people to lose their jobs or take pay cuts or be furloughed, but, when you look at what is happening with COVID-19 overall, we are by no means alone in this battle.”
The energy industry will survive this downturn, though, Wicklund described surviving companies as being smaller, more efficient and those doing more with less.
“The way forward is going to be one of much higher efficiency and much more of a focusing on profitability rather than revenue growth,” he said. “We are no longer a growth industry. We are a mature industry.”
Royal Dutch Shell Plc, BP Plc, Chevron Corp., Exxon Mobil Corp., Hess Corp. and Murphy Oil were taking precautions, but not evacuating workers from offshore production platforms on June 2 because of Tropical Storm Cristobal.
The time line for international R&D to demonstrate safe, sustainable and economically feasible gas hydrate production is on the horizon.
Parsley Energy plans to restore all of the 26,000 bbl/d it cut earlier this year and an EOG Resources executive told investors it would reopen shuttered wells and add new ones in the second half of the year.