The Gulf of Mexico oil and natural gas auction held Wednesday attracted two high bids for more than $20 million and four others for $10 million-plus, a sure sign that the energy industry is suiting up for a dive back into the offshore.
Articles from E&P
The oil and natural gas bust beginning in 2015 was worse than many thought, fueling a spike in the U.S. default rate that rivaled the telecom industry collapse in the early 2000s, both in recorded bankruptcies and low creditor recoveries, Moody’s Investor Service said.
Nearly 40% of the proppant capacity in the U.S. drilling industry, an estimated 20 million tons of sand and resin-coated proppants (RCP), have been idled or reduced over the past year, leaving little wiggle room for growth this year, industry suppliers lamented during recent quarterly conference calls.
Anyone looking for a silver lining for the U.S. natural gas and oil business should not think it will come from the oilfield services (OFS) sector, as management teams are less optimistic than they were even a few months ago.
Liquids-rich and oil plays have clearly won the hearts and dollars of North American producers. The Eagle Ford and Bakken shales are stars now, but several others are poised to join or possibly eclipse them, according to a recent note by Standard & Poor’s Ratings Services (S&P).