For Crypes’ Sake — Cryptocurrency, Elon and Greta
Like real currency, cryptocurrencies are a medium of exchange which can be used to purchase goods and services virtually. Elon Musk, for instance, announced early this year that Tesla would be accepting cryptocurrencies in exchange for Tesla products, making it the first major automaker to do so. Cryptocurrencies are attractive for several reasons: there are […]
Golden Era or Gold Quarter?
With 1Q21 earnings well underway, it is clear that E&P companies are generating more profits (as measured by free cash flow) than they have in a long time. Cumulative cash flow generated for independent E&P companies in Q1 increased tenfold from the previous year, based on the sample set we have now. Capital discipline reflected […]
CFHO: More Legs Than a Spider
Cold flow heavy oil (CFHO), as the name makes clear, describes the production of thick crude that flows slowly — think of molasses. Unlike some oil sands projects where steam is injected underground to decrease viscosity and allow the oil to flow, CFHO is pumped to surface without the addition of steam. CFHO typically relies […]
Environmental, Social and Governance – Do Markets Really Care?
Lenders have and continue to price credit risk within the E&P industry by assessing the proportion of a borrower’s cash flow and collateral to its net debt. However, in recent years many lending institutions began adopting policies to incorporate environmental, social and governance (ESG) factors into their investment decisions to assess risks unquantified by traditional […]
In Energy, the Only Constant Is Change
There are many terms circulating today regarding changes to how we power our lives. Are we experiencing a “transition” or an “evolution”? At Enverus, we see it as an evolution. The future of energy is an expanding mix of energy sources, not an elimination of them. From wood, water and oil, to wind and solar, […]
Delaware Basin’s Evolving Federal Landscape
Since the Biden administration took office in January, the risk to oil and gas producers with assets on federally administered land has been a dynamic debate. On his first day in office, President Joe Biden issued an executive order temporarily banning new leasing and permit approvals on public land for a 60-day period while questions […]
Why ERCOT Outage Scares Are Vexing Texas in Mild Weather
The threats of ERCOT power blackouts are emerging again this spring, just two months after millions of Texans survived freezing temperatures without heat or power during extended blackouts in February 2021. On Tuesday, April 13, Texas’ power grid again faced failure as extended maintenance work and unseasonable weather patterns brought typical supply levels lower. ERCOT […]
A Survivor’s Guide to Oilfield Volatility — OFS Edition
So, what really happened last year? Our title really begs the question: Why do we need a survivor’s guide to 2020 if it’s over? It is important to review last year and analyze how we can adjust moving forward. We want to demonstrate that last year was tumultuous and we are still experiencing its consequences. […]
Is Price Creep Coming for Oilfield Services?
Are we seeing the first little clawbacks of price creep back in drilling and completing new wells? We don’t have a lot of evidence yet, but a few signs of increasing prices for oilfield services (OFS) are appearing on the horizon. For example, Devon Energy said that per unit expenses are up by ~5% in […]
Past Is Not Prologue: Changes Coming to U.S. Primary Energy Demand
The U.S. leads the world for per capita consumption of primary energy harvested directly from natural resources (Figure 1). While oil, solar and hydro are examples of primary fuels, electricity isn’t. Rather, different types of primary energy are transformed into power that turns on lights at the flick of a switch. The maturing of the […]