(The views and opinions expressed in this article are those of the attributed sources and do not necessarily reflect the position of Rigzone or the author.)
On Friday of last week, one of Rigzone’s regular market prognosticators observed a trend that has caused the delivery point for West Texas Intermediate (WTI) crude oil to stand out. The Cushing, Okla., oil hub is home to a complex array of energy transport and storage infrastructure. According to another market-watcher who regularly provides insights to Rigzone, a different trend among oil and gas players appears to be growing more complex and contentious – and thus harder to manage. Find out what that trend is in this week’s preview of what to watch in the oil and gas markets.
Tom McNulty, Houston-based Principal and Energy Practice leader with Valuescope, Inc.: I am seeing more complexity and disputes in oil and gas bankruptcies because the fulcrum security has moved higher up on the right-hand side of the balance sheet. More secured debt Is affected than before, and this is more complex and difficult to work out.
Tom Seng, Director – School of Energy Economics, Policy and Commerce, University of Tulsa’s Collins College of Business: With WTI prices falling below the key $40 mark again, look for shut-ins to occur as most U.S. basins are barely profitable at this level. Additionally, the market will have to assess the President’s diagnosis in terms of how it views the spread of the coronavirus and whether or not the administration will now take a stronger stance in fighting it.
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