Fortunetellers

Fortunetellers

​Reese Energy Consulting today is studying the latest news from Rystad that projects publicly traded E&Ps this year will generate super-profits leading to a record $348 billion in free cash flow. This compares to the all-time high of $311 billion in 2008 when oil averaged $100 per barrel. Revenues this year are expected to increase by $500 billion—up 55% compared to 2020—and new greenfield investments are set to double. Have the planets aligned to usher in a “new era” for shale amid higher oil and gas prices, CAPEX discipline, reduced debt, restrained production, and happy shareholders rounding out the astrological chart? Analysts from Bloomberg, Wood Mackenzie, and Deloitte seem to think so and many are still predicting $100 crude during the second half. While nothing lasts forever, you have to admit it’s good to catch some wind in the sails for a change.

What do you think? Learn more about Reese Energy Consulting and our range of energy services for upstream, midstream, and downstream operations at www.ReeseEnergyConsulting.com.

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Is It Just Us?

Is It Just Us?

Even a cursory glance at the latest oil and gas news could leave eternal pessimists believing something is definitely afoot. In an industry characterized by at least half a dozen boom-to-bust-to-boom cycles over the last 40 some odd years, the latest signs would suggest the U.S. is again flirting with another boom. Reese Energy Consulting today is studying reports on the momentum now in full gallop after the fossil fuels industry last year was all but declared dead. Fast forward to 2021. The framework for a new boom came together early with oil and gas prices entering zoom mode, OPEC+ limiting exports, and financial discipline on full display. In its latest, quarterly energy report published this week, the Dallas Fed surveyed 150 oil and gas firms in Texas, southern N.M., and northern La., to measure current conditions. The oil production index increased from 16.3 in the same period last year to 35.0—the second-highest score in the survey’s history. The gas production index rose from 16 in 2020 to 35.0. As for the six-month outlook index? The highest score ever at 71.9. Let’s keep this train on track.

What do you think? Learn more about REC and our oil and gas services at www.ReeseEnergyConsulting.com.

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Operation Bullseye

Operation Bullseye

ESG plans throughout the nation’s oil and gas industry continue to make headlines these days, and while the end goal is the same—net zero greenhouse emissions by 2050—the journey to get there has many different roadmaps. Reese Energy Consulting today is following the latest ESG report from Houston-based EagleClaw Midstream, the largest gathering and processing operator in the Permian’s Delaware. EagleClaw expects to achieve single-digit reductions in its carbon emissions level by 2025 with a plan that includes converting its fleet to electric vehicles, expanding electric compression, investing in CCS technologies, and tying 20% of employee bonuses to the company’s annual ESG goals. Okla. City-based Devon also has announced emissions-reduction plans that sweep its operations in the Delaware, Eagle Ford, Anadarko, Powder River and Williston basins. Actions will include reducing and ultimately eliminating flaring by 2030, electrifying facilities, adding air-driven pneumatic controllers, and minimizing freshwater use. Bold moves ahead.

What do you think? How can REC help you along your energy transition journey? Contact us or learn more at www.ReeseEnergyConsulting.com.

 

EagleClaw Midstream

EagleClaw Midstream is strategically located in the heart of the Delaware Basin in the Permian, one of the fastest growing areas for oil and gas development in the world. They provide the gathering, compression, processing, transportation and water management services required to bring natural gas, natural gas liquids and crude oil to market and are dedicated to providing the best service and netback for their customers.

www.eagleclawmidstream.com