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Event
SPE Permian Basin - Section Meeting - September 2021
Petroleum Club of Midland
September 16, 2021
11:30am to 1:00pm
Impact of Lower Reinvestment on Tight Oil Supply
Ryan Dunman, Research Director (Wood Mackenzie)
Abstract
Not only have tight oil players recently pushed reinvestment rates well below the mandated 70% cap, but they've also shown capital restraint as crude prices sit above US$70/bbl. This transformation of much of the sector is undoubtedly welcomed news for investors but begs the question, what impact will this new capex paradigm have on Lower 48 supply?
We calculated several production scenarios under various prices and reinvestment rate constraints to quantify the impact sustained lower reinvestment will have on tight oil growth potential.
Please join to learn more about:
Can tight oil still grow with considerably less investment, and if so, at what price and reinvestment rate?
What's the tradeoff between pursuing growth and maximizing free cash flow?
How do stay-flat reinvestment rates vary among companies?
How has the time to de-lever to a resilient gearing level changed with higher prices?
What implications could lower reinvestment have on global markets and other market segments?
Bio
Ryan joined Wood Mackenzie in 2012 and currently works on the US Upstream Research team covering tight oil. He works with E&P's, service companies and investors in the Rocky Mountain region. Ryan specializes in supply forecasting, basin characterization, decline curve analysis, economic modeling, and competitor intelligence.
Prior to joining Wood Mackenzie, Ryan worked as an Energy Market Analyst for Ponderosa Advisors in Denver, CO. While at Ponderosa he focused on upstream markets constructing supply forecasts, field and producer economics and market trends.
Ryan holds a BS from the University of Michigan and an MS in Natural Resource Economics from Michigan Technological University.
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LocationPetroleum Club of Midland (View)
501 W Wall St.,
Midland, TX 79701
United States
Categories
| Dog Friendly: No |
| Non-Smoking: Yes! |
| Wheelchair Accessible: Yes! |
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