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Analyze This - published by Oil & Gas Financial Journal
2010 energy M&A outlook
After a dismal open at the start of the year, the M&A market finally began showing signs of life again as we moved toward the end of 2009. At the time this column goes to press, 22 deals had been announced in 4Q09, representing a total value of $15.3 billion, compared to $4.8 billion in the US for the third quarter.
Emerging M&A opportunities
Record high prices for natural gas made conventional Gulf Coast production an attractive target for operators in recent years, but the extreme downward pressure on the price of gas in 2009 has prompted companies to look elsewhere for their prize.
A&D on the uptick
The A&D market started slowly this year. IHS Herold reports that only 17 deals closed in the first quarter, compared to 86 in 1Q08. The outlook was, indeed, bleak, as we entered the second quarter. Fortunately, someone appears to have fired a gun in mid-May, and in 2Q09, we sprinted to 39 closings.
Capital still accessible for the energy industry
Despite dismal market conditions, capital continues to find its way onto the industrys balance sheet. Amidst the news of bankruptcies, low commodity prices, and tight credit markets, there have been some positive headlines come out of our sector in recent weeksand not too soon. In fact, a number of companies have accessed more than $3.0 billion during 1Q09.
Bullish opportunities in a bear market
Economic uncertainty, increasing unemployment, high volatility of commodity prices, slumping oil and gas consumption, and limited access to capital are a number of factors that have fostered the bearish sentiment that has permeated throughout our industry for much of first quarter 2009. Nevertheless, conditions may be shaping up for those willing to take advantage of this seemingly dismal situation.
OPECs influence on oil prices
Market anxiety about the global recession hit commodity prices hard in fourth quarter 2008 and drove the price of crude down to a four year low of $40.81 (at the time of publishing).
Purging the risk premium: the fundamentals driving 2009 oil prices
It has been an interesting year in the oil and gas industry to say the least. At the start of the year, the market witnessed oil breaking the $100 threshold, but that was only the beginning.
The Iranian energy threat
Irans government is perhaps the worlds greatest threat to energy security.
Iraq: The energy wild card
In a time of great uncertainty about world oil supplies, there has been no bigger question than what role a rebuilt Iraq will play in the global supply chain.
Meeting undue demand How price controls are working to outstrip oil supplies
Many factors are contributing to the high price of oilnot least of which is government intrusion into free markets in the form of fuel subsidies.
Why competition is heating up for LNG
In recent years, there has been much discussion about the impact developing economies will have on the global energy markets. Economic growth in Asia has already heightened global competition for oil; now, the United States is experiencing the same competition for natural gas.
Privatization could be the key to unlocking Mexicos reserves
The oil and gas industry in Mexico is at a crossroads. Declining production, operational difficulties, and inadequate governmental polices are inhibiting the continued development of the countrys much needed reserves.
The threat of a new cartel
The increasing need for LNG could support a global pricing mechanism for natural gas.
Can this boom be sustained?
As the New Year kicked off with $100 oil, the murmur of recession and bust began to circulate throughout the industry.
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