Credit Capacity is Top Financial Concern of Energy CFOs, According to BDO Seidman, LLP Study
© Business Wire 2008

Summary 

57 %  of CFOs at U.S. oil and gas exploration and production companies say that "credit capacity restraints, including access to capital" will be their greatest financial challenge in 2009,

21% think falling oil or natural gas prices will be the biggest challenge.

72% expect the economic crisis in the U.S. to impact their ability to borrow money or extend bank debt in 2009.

It is interesting to me that many see increased demand as the key to restoring pricing to its previous high level. The recession has been designated as starting in Jan of 2008. Experts seem to think this will be a 24 to 36 month recession, so we will not see an uptick in demand until 2010. That my be too long for some O&G companies that are not well financed.

I expect that we will see much merger and acquistion activity in 2009, as less well capitalized companies sell out to stronger rivals. I also expect that many will again begin to explore for reserves on Wall Street, as the cost/ risk profile will be compelling.

As always your feedback is welcome.