RBN’s Daily Energy Blog and Insights sharpen your energy IQ through fundamentals-based analysis that makes sense of North America’s energy market dynamics.
Though crude oil prices have been rebounding lately, this spring’s price crash sent shockwaves through the U.S. midstream industry, which not too long ago had emerged from a decade of massive infrastructure investment in response to unprecedented upstream production growth.
Chesapeake Energy’s announcement yesterday that it has filed for Chapter 11 bankruptcy protection is only the latest sign of how much the seismic economic shocks from the pandemic-triggered demand destruction have roiled the U.S. E&P sector.
March’s crude oil price crash hit the E&P sector like a tsunami, shattering capital and operating budgets, upending drilling plans, and eviscerating equity valuations.
Though crude oil prices have been rebounding lately, this spring’s price crash sent shockwaves through the U.S. midstream industry, which had just emerged from a decade of massive infrastructure investment in response to unprecedented upstream production growth.
COVID-related demand destruction and the oil price meltdown have engulfed energy markets and companies in a thick, pervasive shroud of doom and gloom.
E&Ps have long been accustomed to negative investor sentiment and the depressed stock valuations that come with it.
You wouldn’t know it yet from outright crude oil production volumes, which stood at 13.1 MMb/d last week, but with crude oil prices in the cellar, the situation for U.S. E&P companies has rapidly gone from bad to worse.
The fortunes of U.S. midstream companies in 2020 and beyond will be largely determined by how shrewdly they invested during the frenzied infrastructure build-out of the past few years.
NATGAS Billboard is a daily, early morning email and report that provides an up-to-the-minute view of the natural gas market outlook, including storage injections/withdrawals and price. Billboard’s models incorporate pipeline flow data, weather models, electricity demand data and more.
The Shale Revolution created enormous opportunities for U.S. midstream companies. But opportunities are only that.
After a decade in which unprecedented upstream production growth triggered massive investment in infrastructure to get crude oil, natural gas and NGLs to market, 2020 is a major inflection point for the U.S. midstream industry.
