When will we see wheels on the road and boots on the well sites?
That’s probably top of mind from the finance markets to CEOs, drillers and pipeline companies. The financial markets are oohing and aahing about the positive changes the oil & gas industry will see – optimistically within the first six to 12 months. Even before Trump and Perry the industry was jump started as there have been more M&A (mergers and acquisitions) in 2016 than 2015 especially in Marcellus. Marcellus assets changed hands for a total of US$7.25 billion in 2016 – a massive increase on the US$920 million total recorded in 2015. Anadarko is selling assets in PA and TX to Sanchez Energy and the Blackstone Group ; Rex is planning to spend $70 million to $80 million on capital projects in 2017, with 80% going to Marcellus, Upper Devonian and Burkett Shale development in Western Pennsylvania, and 20% to the Utica Shale in Ohio. Exxon Mobil does a Permian Deal. The assets are located in the Delaware Basin, part of the larger Permian. The deal is the largest oil and gas acquisition in the United States since crude prices crashed in November 2014, according to Houston-based oil and gas research firm PLS. Then there’s the oil activity. Oil prices have risen roughly 20% since OPEC reached an agreement to decrease the supply last November. And the US producers stepped – production that is. The OPEC deal prompted a surge in activity in the U.S. — not an OPEC member — where oil and gas producers increased drilling to the most since April 2014. A ShaleDirectories.com member told us he’s busy responding to request for proposals for the – coal industry. Who would have thought the coal industry needed quotes?!!
So…. there is activity and it appears to be here, there and optimistically we hope everywhere -nationally. We all know it is happening but who, where and when are they doing it is the question. Within a few months there should be some clear direction in the administration represented by the wheels on the road and boots on the well pads. It’s the Marcellus Shale Coalition, AIP, the producers themselves that have some of these answers. Attend the Upstream PA 2017, March 21, State College, PA; Appalachian Storage Hub, June 15th , Southpointe, PA and Midstream PA 2017 — October 19, 2017 Penn Stater Conference Center, State College, PA. To get all the news and events to attend visit – regularly- http://www.shaledirectories.com/site/oil-and-gas-expo-information.html