| $51.62→ | 9/29/2017 | 09/29/2016 | 09/29/2015 | 09/29/2014 | 09/29/2013 |
|---|---|---|---|---|---|
| Active Rigs | 58 | 34 | 69 | 186 | 184 |
RBN Energy: development finally advancing in Argentina's biggest shale play. Bottom line: a long way to go.
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From Boomberg / Moody's Investors Services: for shale drillers and oil sands producers -- consistently above $50 is needed. Data points:
- study consisted of 37 E & P companies in US and Canada
- with a few notable exceptions, few companies with a "healthy leveraged full cycle ration"
- exceptions: Appalachian explorers Antero Resources Corp and Range Resources Corp, as well as Canadian shale gas producer Seven Generations Energy Ltd
- most others had ratios way below a level Moody's considers healthy
- the three best performers focused on liquids-rich gas plays: the Marcellus and the Utica, and the Montney
- cash flow surge in last few years: Antero and Seven Geenrations
- Moody's: producers' leveraged full cycle ration needs to be significantly above 1 for explorers to earn a meaningful return on their investment
- the average for 37 explorers, last year: 0.59
- the ratios of the top three: above 1.5
- Antero's ratio: 2.19 tops the list
- among the lowest ranking were Apache Corp and Devon Energy Corp with ratios below 0.05
- recent natural gas discovery in Dutch North Sea could be even bigger than originally thought
- now estimated at 2 trillion cubic feet of gas, more than the Netherland's annual gas production
The story only interests me because:
Dutch gas production has been steadily declining, partly due to a lack of new developments and partly to a government-mandated cap on output from the country's largest field at Groningen after it was established that it triggered earth tremors.
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