Oil and Gas Investor Magazine - January 2014

Emerging Plays

Not so long ago—in geologic terms—a sea that covered much of the western US had a shoreline in New Mexico where the rock was named Gallup sandstone in the past century;

Arclight's Whole-Cloth Creations

Innovative onshore and offshore investments are highlights of this private-equity investor's midstream deals.

Canada's Changing Energy Landscape

While rich in natural resources, Canadian energy providers nonetheless face a headwind of challenges from market access, to infrastructure, politics, environment and capital constraints.

Know Your Neighbors

Developing a comprehensive understanding of local communities and the impact the oil and gas industry has on them will help detect and prevent production risks.

Lessons From The Fayetteville

“We're in development mode,” says Jack Bergeron, “but we continue to learn new things all the time that enhances the value of our assets. It's an evolution.”

Midcontinent A&D Thrives

The Midcontinent region of the US has always played a key role in the domestic supply of US crude oil and natural gas.

Parsing The Jobs Act

The more controversial provisions of the JOBS Act are finally going into effect. What does it mean for the future of E&P?

Peak Oil Postponed

In an excerpt from his new book, Following Oil, Thomas A. Petrie gives his perspective on peak oil theory: To his way of thinking, we're not running out of oil anytime soon.

Regional Spotlight: Powder River Basin

Like many oily basins in North America, the Powder River Basin has seen a dramatic increase in drilling activity in the past several years.

Rosetta Goes To School

Jim Craddock became chairman, chief executive officer and president of Rosetta Resources Inc. in February 2013 after serving as senior vice president, drilling and production operations, since 2011.

Slow Going In China's Shales

China's unconventional oil and gas sector holds major potential for domestic and international operators, but development is foundering.

The New Devon

Billing itself as “The New Devon,” Devon Energy Corp. announced in late November it would acquire GeoSouthern Energy's Eagle Ford oil play for $6 billion, advancing Devon's agenda to become more focused on liquids.

The New Devon

Billing itself as “The New Devon,” Devon Energy Corp. announced in late November it would acquire GeoSouthern Energy's Eagle Ford oil play for $6 billion, advancing Devon's agenda to become more focused on liquids.

The New Faces Of Finance

Next up: the capital finders and providers. We're proud to present in this issue our first annual list of 20 Under 40 in Energy Finance.

Tipping Point Or Goldilocks?

Cyclicality is such a part of oil industry lore that it's tough to imagine a Goldilocks scenario (neither too hot nor too cold). Not for crude. Not for an industry famous for its booms and busts.

Wringing Value From Devon's Deal

In late November, Devon Energy Corp. announced the acquisition of privately held GeoSouthern Energy’s Eagle Ford assets for $6 billion.

Drinking The Oil-Aid

In December, QEP Resources agreed to pay just shy of $1 billion—or $140,000 per flowing barrel of oil equivalent—for a decidedly oil-rich position deep in the heart of the Permian Basin

Meet Carl Vandervoort

Vandervoort is a second-generation oil finder from Fort Worth, Texas.

Company Briefs

Apache inks $2.95B Egypt partnership with Sinopec

Shake, Rattle And Dispose

Fractivists celebrated at the tail end of November as Massachusetts lawmakers advanced a 10-year state ban on hydraulic fracing from one committee to another.

Permian Milestone

Horizontal drilling is the preferred solution in a majority of domestic hydrocarbon basins. It is now the preferred approach in the Permian Basin.

International Highlights

Chatting With Bob Gunn

Robert D. Gunn, founder and chairman of Gunn Oil Co. in Wichita Falls, Texas, is a nationally recognized geologist who served as president of the American Association of Petroleum Geologists in 1978-1979

Activist Shareholders Pressure QEP To Jettison Midstream

QEP Resources Inc. will pursue a separation of its midstream business, QEP Field Services Co., including the company's majority interest in QEP Midstream Partners LP, the company said in early December.

Analyst: Oil's Downfall On The Way As Demand Drops Worldwide

Global oil demand is sputtering and WTI prices may plummet to $70 per barrel by 2015, according to James Rollyson, senior vice president at Raymond James & Associates.

Bakken Production On Track To Hit New High At 1 Million Barrels Daily

Apparently, the Bakken will not be denied. North Dakota's oil powerhouse got off to a slow start in 2013 as weather beat production back to about 766,000 barrels of oil per day.

Booming Oil And Gas Industry Makes Up 1% Of U.S. Economy

In some quarters there is still debate over the extent of the impact of the shale revolution on the US economy.

Chesapeake Climbs Back From Selling Spree With $5-Billion Liquidity

Two years of selling billions of dollars worth of assets can put a spring in a company's step.

Consol's Project In Pittsburgh Cleared For Takeoff

Pittsburgh International Airport already serves as a bustling gateway for the busy tri-state area. Now, its subsurface will be equally lively.

Cooper Basin Piques Shale Developers' Interest

“Australia is within the league of high prospects,” said Barry Goldstein, executive director for the energy resources division of South Australia's Department for Manufacturing, Innovation, Trade, Resources, and Energy.

E&C Firms Take Leading Role In Refining Shale

Engineering and construction (E&C) firms have come to the forefront of shale development as the refinement of their techniques has reduced cycle times by up to 40% and driven down 25% of costs.

Encana To Focus On Five Cores, Spin Off Clearwater

In an effort to counterbalance low natural gas prices, Encana Corp. announced a “bold” new vision and strategy late in the fall.

Energy Investors Should Welcome M&A's Struggles

After 2012 global spending blew the doors off all previous years, perhaps it was inevitable that M&A after New Year’s would be seen as weak.

Greater Efficiency Leads To Land-Rig Overcapacity In U.S.

After 20 years of being a gas-driven market, the US industry is now being driven by oil activity, particularly the growing intensity of horizontal drilling.

Linn Merger Drama Goes Down, But Berry's Price Goes Up

The multibillion-dollar merger between LinnCo LLC and Berry Petroleum Co. may be defrosting after months of delays.

Majors Look To Divest Assets, Including U.S. Shale Holdings

Despite their steady profitability, large international companies are beginning to jettison land holdings to kick up their stock prices or get out of a financial jam of another sort.

Pennsylvania Gov.: No Question Shales Are Driving Jobs Surge

For Pennsylvania Governor Tom Corbett, the benefits of the oil and gas boom in his state can be summed up by a bumper sticker he spied on a pickup truck—'American energy, American jobs.'

Range Sees 'Great Potential' For Dry Gas In Utica Shale

Range holds about one million acres prospective for shale in Pennsylvania

Schlumberger Tests Fracs To Help Push Well Economics Higher

While directional drilling and hydraulic fracturing have enabled tight-rock resources to be exploited successfully in recent years, it remains an imperfect and inefficient technology

Shale Development To Accelerate U.S. Capex Spending

Following two years of tepid growth, North American oil and gas capex spending is primed for acceleration led by the US, according to Barclays Research's 2014 Global EP Spending Outlook, released in mid-December.

Shifting Differentials May Cause Market To Rethink Crude Logistics

West Texas Intermediate (WTI) to North Sea Brent $30-per-barrel crude spreads are a thing of the past, which means tighter differentials for rail with trade closer to variable costs.

Technology Improving Efficiency In Marcellus, Utica Shales

The North American shale revolution has stood many traditional notions about oil and gas development on end.

Transocean Bends To Pressure From Activist Shareholder Icahn

After fighting Carl Icahn tooth and nail last spring, Transocean Ltd. has capitulated.

U.S. E&Ps Poised To Lead Record Global Capex Spend In 2014

Accelerating out of a flat year, North American E&Ps are positioned to lead a 6% growth surge in global E&P spending to a record $800 billion for 2014, according to predictions by analysts at Bernstein Research.

Water Supply Problems Threaten Global Oil And Gas Development

Water-associated risks, including dwindling supplies and regulatory uncertainty, threaten to derail potential development of conventional and unconventional oil and gas resources if steps are not taken to curb the problem.

Well Stimulation Providers Optimistic On Eagle Ford Market

Well stimulation service providers are expressing optimism about an expanding 2014 Eagle Ford market.

Hershey Kisses

Marcellus shale sweet spots are the drivers of soaring production that could double current levels in fewer than six years.