Buyers’, investors’ and others’ growing demands for carbon-lite fuels and ESG in operations have U.S. gas producers and shippers stepping up to differentiate themselves from peers. The prize may be a higher price per Mcf for their products. Or it may simply mean continued existence.
Made from natural gas, the superior Btu fuel remains most practical and efficient for its current uses rather than in transportation. For example, the boiling point is colder than Jupiter, it doesn’t like hard steel and it needs a nearly entirely new infrastructure.
The industry is on a new—and better—path, the wildcatter says. “It’s honestly probably an easier route than the treadmill that we were on.” Here’s the 2021 update and a look at his new shale gas E&P.
Something unusual is happening on the way to 2022. The “shoulder months” are barely shoulder months. A one-year wonder or a new gas paradigm? Outlooks are favoring the latter. Here’s why.
The energy future needs landmen, geologists, engineers, places to store CO₂, money and business leaders who understand how to monetize the value chain. It needs oil and gas people. Here’s the playbook and a description of the prize.
Debt capital is on sale, and public equity markets aren’t closed to oil and gas operators either. Some just don’t have any use right now for the cash—that is, a use that investors would support.
While U.S. natural gas demand was mostly flat in 2020, Mexico’s grew. And it came from Texas. The outlook is that Mexico will be ordering more, including from the Eagle Ford’s underdeveloped gas fairway.
It’s not the Keynes kind; it’s the Jack London kind. E&P executives are restless, according to a Dallas Fed survey, and they’re going mano a mano for market share. Will it manifest in consolidation? Where to next for the sellers? For some, it’s a new land rush: energy transition.
Oil is rebounding but is forecast to continue to be constrained by excess production potential at a higher price. Meanwhile, U.S. natgas is all dressed up with lots of places to go.
Secured-debt lenders have new terms for oil and gas producers. Some were underway before 2020.
