Colin Watson, vice president of energy finance at the Bank of Texas in Dallas, discussed the current emphasis E&Ps have on maintaining liquidity in the current first-lien, low oil price environment. Companies sometimes are buying assets aggressively at cheaper values, but capital spending must remain within cash flow. Watson was interviewed at the recent NAPE Summit in Houston.
The Midland Basin, located within the eastern region of the Permian Basin, has seen a steady amount of new E&P activity since 2011.
The seven companies that control half the federal supply onshore in the Lower 48 states have leases and permits in hand that could last years.
Energean said on Jan. 21 there were delays in increasing the workforce building its FPSO vessel in Singapore, which was due to sail to Israel toward the end of the third quarter.