Faced with an oversupply of oil, no place to store it, and a spot price below the cost of production, producers have scrambled to shield themselves from permanent damage during the downturn -- but not all solutions for saving your leases are created equal.
In part one of our FAQ series, we will review the first steps oil and gas producers should consider when curtailing production and the lease clauses to be aware of.
The oil and gas industry continues to navigate the effects of the Russia-Saudi oil war and Covid-19. Throughout recent months, US oil prices continually hit new record lows, reaching numbers unseen since the Persian Gulf War. Consequently, US producers have scrambled to shield themselves from permanent damage during the downturn. Here are five considerations E&P companies can take to mitigate risks of curtailing production or shutting-in wells.
The oil and gas industry continues to navigate the effects of the Russia-Saudi oil war and Covid-19. Throughout recent months, US oil prices continually hit new record lows, reaching numbers unseen since the Persian Gulf War. Consequently, US producers have scrambled to shield themselves from permanent damage during the downturn, with six significant players expected to shut some 300,000 barrels per day (bpd) of crude for May and June. For other producers, the process of shutting in wells to downsize risk is paramount. Below, we will dig deeper into what led to the current climate and three important lease provisions to review before shutting-in your wells.
Given the current oil and gas market, it’s understandable that many companies are choosing to outsource their land work. There are several reasons why an organization may opt for this avenue. From a lack of on-site resources, limited bandwidth, and scalability concerns, land management companies like Cinco Energy can plug into your existing company structure and provide a multitude of benefits when you’re stretched thin or looking for a partner. Here are the top advantages of outsourcing your land work.
After a successful virtual Summer NAPE, the team at Cinco Energy is excited to continue providing expertise on shutting-in wells during session three of Haynes and Boone’s Webinar Series for Land Professionals. These ongoing educational webinars, led by industry experts, are specifically designed to address challenges like these facing the oil and gas market.
Last week, NAPE kicked off its first-ever virtual summer conference. Hosted on the newly created digital NAPE Network, the event offers a safe gathering place for over 1,500 attendees in the oil and gas industry. Already off to a great start, buyers, sellers, and investors have until August 27 to enjoy signature NAPE features, including networking, job boards, presentations, and roundtable discussions featuring experts from around the world.
Reserve-based lending (RBL) is a type of asset-based lending used to finance the operations of independent oil and gas companies. Debt is issued as a factor of reserve value, which is known as the Borrowing Base. Loans are subject to redeterminations of the borrowing base, commonly twice a year.
