Last week’s MUM conference was pick up for everyone who attended.  The conference presented a realistic look at the oil and gas price declines compared to other downturns and it does not seem as bad. 

Additionally, it was a midstream conference and midstream work is continuing unabated.  My notes from conference.

o Kudos to Hart Energy for a superb conference which saw record attendance in the range of 2200 attendees.  I credit the record breaking attendance to the industry’s need to get the latest information.  As we see the oil and gas industry is very dynamic, and literally, situations change overnight.  I encourage vendors to the industry to attend as many information events as you can in order to stay current with the status of drilling or midstream activity.

o Thank you to Barry Davis, EnLink’s President and Chief Executive Officer, for calming the concern over falling prices.  His presentation illustrated the price declines since the mid 1980’s.  The price declines showed the nature of the price decline cycles.  The current declines are not as bad as previous ones.  Price recovery, back to 50% of the original price usually occurs within 100 to 300 days.

o Davis also called the Marcellus – Utica shale plays the “best of the best.”  In other words, PA, OH and WV are not going to experience as steep a decline in drilling as the other shale plays.

o Because the Marcellus-Utica are the “best of the best,” companies that left PA, OH and WV to follow the higher oil prices are returning to the Appalachian Basin.  A number of companies from Texas, Louisiana and Oklahoma stopped by our booth enquiring about Shale Directories membership.

o “High Energy” is how I describe the MUM Conference.  Exhibitors and attendees went to the conference not knowing what to expect with all doom and gloom in the press.  But from Tuesday networking reception to the close of business on Thursday, the attitude seemed to grow in optimism and confidence as the result of the presentations and meetings.

Joseph Barone
President
ShaleDirectories.com
610.764.1232

www.shaledirectories.com