Survey: Oil and Gas Price Expectations Bolster Bankers’ Confidence

Haynes and Boone survey shows that a primary indicator leans toward favorable borrowing for producers in 2022.

Producers are likely to find a promising borrowing climate in 2022. (Source: Hart Energy; Larry-Rains, Aha-Soft, G B Hart/Shutterstock.com)

Producers are likely to find a promising borrowing climate in 2022. (Source: Hart Energy; Larry-Rains, Aha-Soft, G B Hart/Shutterstock.com)

Bankers are confident that oil and gas prices will remain at lofty levels in 2022, making it more likely that producers will be able to borrow, Haynes and Boone LLP said in its fall price deck survey.

“I’m more optimistic that prices will continue to stay high because I don’t see a lot of immediate rush to go out and overdrill and overspend for increased near-term productivity,” Buddy Clark, partner and co-chair of the Haynes and Boone energy practice group, told Hart Energy. OPEC-plus continues to be a wild card, but efforts by the Biden administration to tap into the Strategic Petroleum Reserve won’t alter the fundamentals of supply and demand, he said.

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Joseph Markman

Joseph Markman, senior editor for Hart Energy, covers markets and provides data analysis for all Hart Energy editorial products.