Alternatives

January 1, 2015

First Quarter 2015 Energy Industry

Sector Focus: Exploration & Production

Segment Focus

Exploration & Production

2015 First Quarter

In 2015, oil and gas exploration & production activities in the US are expected to generate $320.0 billion in revenue.1   This represents an 8.8% decline from 2014, but a 13.9% increase from 2009’s nadir.  Industry revenues peaked in 2008 due to record-high oil prices, but declined precipitously in 2009 as prices dropped, driven by declining energy demand resulting from lower levels of economic activity during the recession.

Industry revenues have generally increased since that time as the economy and oil prices recovered, but are expected to decline this year due to low oil prices.

After declining in 2015, industry revenues (as estimated by IBISWorld) are expected to rise over the next several years due to technological advances, higher oil prices, and higher levels of production.

Download the full newsletter

Download
Download the newsletter

Continue Reading

How Do Reserve Categories Affect Oil and Gas Valuation?
How Do Reserve Categories Affect Oil and Gas Valuation?
Reserve categories influence oil and gas valuation through differences in recovery certainty, required capital, development timing, and exposure to execution risk. Understanding how PDP, PDNP, PUD, probable, and possible reserves differ helps support more defensible valuation assumptions and conclusions.
How Do Business Appraisers Account for Cyclicality When Valuing Oilfield Services Companies?
How Do Business Appraisers Account for Cyclicality When Valuing Oilfield Services Companies?
Oilfield services companies present distinctive valuation challenges because earnings, market multiples, cash flow, and equipment values can shift materially across the industry cycle. Effective appraisal requires applying the income, market, and asset-based approaches with careful attention to normalized performance and cycle position.
Digging Into Frac Sand Royalty Valuation
Digging Into Frac Sand Royalty Valuation
Frac sand royalty valuation requires more than applying a royalty rate to estimated reserves. A supportable analysis must consider lease terms, recoverable and saleable tonnage, production timing, regional demand, and the risks that affect future royalty cash flows.
Energy Valuation Insights Blog Oil & Gas
Read Now about Digging Into Frac Sand Royalty Valuation

Cart

Your cart is empty