Cash-strapped? Bad credit? Out of marketable assets to sell? Welcome to much of the oil and gas industry, with a dash of pandemic.

The industry’s bone-crushing fall from grace since 2014 has already led to deep mistrust from lenders and investors. Some companies may choose to wait out what has essen­tially been a half-decade of downcycles in the upstream sector. Some may have just enough wiggle room on their balance sheets and just enough oil to squeeze out of the rocks to survive.

Alternatives are narrowing even more.

At the recent Summer NAPE “Where’s the Money Going to Come From” discussion on the future of oil and gas capital markets, panelists said even the usual confidence afforded companies with proved developed producing (PDP) assets has eroded.

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