President Barack Obama is proposing to pay for clean energy investments by placing a $10 per barrel oil fee as the industry grapples with low prices. Congressional leaders said the plan is dead on arrival.
Craig Lande, managing director at RBC Richardson Barr, says A&D will be different in 2016: capital markets are tightening, 20% of production is hedged and demand is hopelessly outmatched by supply.
Midstream assets figure heavily into deal, with Dominion calculating that $425 million in EBITDA could be moved into its midstream MLP. The merger would put Eastern and Western gas market under Dominion’s roof.
At Hart Energy’s Viewpoint Executive Energy Club, Stratas Advisors directors gave industry executives a wide-ranging view and key to competing in the upcoming year.
Pressure pumpers are seeing bids cluster, a signal that concessions for E&Ps may have bottomed and that some oilfield service companies may start to fall by the wayside.
Ernst & Young report sees infrastructure deals taking off if calm is restored to the markets. Midstream M&A dipped 8% to $149.4 billion last year from 2014’s record.