Studies predict increases in oil, gas industry
The average monthly price of natural gas fell from more than $4.50 per thousand cubic feet in June 2014 to a $1.63/Mcf in March 2016, a decline of 64 percent. Natural gas prices recovered to average $3.46 in December.
Ingham also noted that other economic indicators such as the drilling rig count and drilling permits issued also increased during 2016.
The national accounting and consulting firm Deloitte released a survey of industry professionals that found six in 10 believe the recovery has started.
A majority of those surveyed expect oil prices to reach $60-$80 per barrel, prompting more investments in exploration and production.
Companies will spend 2.5 percent more on capital expenditure this year than they did in 2017, the first yearly growth in such spending since 2014, BMI Research reported.
Spending will increase to a total of $455 billion in 2017 from $444 billion in 2016, BMI said, but will be well below the $724 billion spent in 2014.
Another report from Thomas McNulty, a director in the valuations and financial risk management practice at Navigant, reveals large private-equity investors are falling back in favor with the beaten-down energy sector. They moved to the sidelines of energy-related corporate debt as crude oil prices fell. These days, however, they’re doing the due diligence that precedes making big deals on the sector’s continued recovery, according to McNulty.
Written by Alex Mills, Special to the Times Record News