American Oil and Gas Reporter - January 2016 - 47

putting first quarter 2016 dry gas production at 75.93 billion cubic feet a day, 3.1
percent above first quarter 2015's 73.67
Bcf/d. EIA projects U.S. gas production
will continue to rise throughout 2016 to an
annual average of 76.26 Bcf/d.
In AOGR's survey, category 1 (least active) drillers projected the largest crude oil
and natural gas production drops of 8.1 and
9.1 percent, respectively (see Figure 3).
Category 2 drillers report a 1.9 percent increase in first quarter oil production year
over year, and a 3.8 percent drop in natural gas production.
BDO USA LLP doesn't measure volumetric changes in oil and gas production in
its 2016 Energy Outlook Survey, for which
it interviews chief financial officers at 100
U.S. oil and gas exploration and production
firms. But it does report that 43 percent of
the CFOs it spoke with expect the domestic supply of oil to decrease in 2016, while
22 percent expect it to stay the same.
BDO adds that 10 percent of its CFOs
expect the domestic supply of natural gas
to decrease this year, while 50 percent expect it to remain the same. BDO also mentions that 53 percent of the CFOs it interviewed say their companies significantly

delayed or terminated oil or gas exploration or processing projects over the previous 12 months.
In AOGR's survey, 64 percent of respondents said their 2016 crude oil production would be down, 22 percent said it
would remain the same, and 23 percent
said it would increase. For natural gas production, the numbers are 69 percent down,
31 percent the same, and 6 percent up.
Elsewhere, Jodi Quinnell, manager
of crude oil analytics at Boston-based
Genscape Inc., says her company expects
an 800,000 bbl/d decline in U.S. crude oil
production by year-end.
News service Bloomberg quotes ConocoPhillips Chairman and Chief Executive
Officer Ryan Lance telling an early December conference in Qatar that he expects U.S.
production to drop 500,000 bbl/d this year.
And in an interview with investor Carl Icahn posted on www.profitconfidential.com,
legendary oilman T. Boone Pickens explains
why he expects an industry rebound in the
second half of 2016: "When you went from
1,609 rigs to 514, that took half a million
barrels (a day) off of 9.6 MMbbl/d. In another six months, you are going to take another half million barrels off."
❒

Oil And Gas
Liquidity Remains Strong
NEW YORK-Despite the impact of
low oil prices on company cash flows,
the upstream sector enters 2016 with surprisingly strong liquidity, according to
Evercore ISI.
The 2016 Evercore ISI Global E&P
Spending Outlook reports credit facilities for the U.S., Canadian and international producer/operators it studied fell
only 6 percent during fall credit facility redeterminations.
"Half the companies saw their borrowing bases either reconfirmed or increased," Evercore states, adding that the
aggregate decline among those companies whose borrowing bases did decline
was only 16 percent.
"Looking out to the spring, we believe
redeterminations will be less impactful
than they were in the fall as pricing decks
already reflect lower commodity prices,"
Evercore projects.
Additionally, Evercore notes that

previous reserve calculations assumed
higher service costs. And even though
the company says it believes "oil field
services pricing likely has reached its
nadir in most markets," it reasons lower costs still will partially offset lower
commodity prices, thereby lessening the
decline in reserve and PV-10 calculations.
Consequently, Evercore reports, "In
comparing credit availability and cash
balances for 73 North American independents and international oil companies
with fourth quarter 2014 balances, we
found liquidity was down a surprisingly low 5 percent."
On one other point, Evercore mentions that when prices eventually do turn,
it expects North America "to be the first
to see a pickup in spending as our survey results once again highlight the
fact that North America is the shortest
capital cycle region."
❒

JANUARY 2016 47



American Oil and Gas Reporter - January 2016

Table of Contents for the Digital Edition of American Oil and Gas Reporter - January 2016

Contents
American Oil and Gas Reporter - January 2016 - Cover1
American Oil and Gas Reporter - January 2016 - Cover2
American Oil and Gas Reporter - January 2016 - Contents
American Oil and Gas Reporter - January 2016 - 4
American Oil and Gas Reporter - January 2016 - 5
American Oil and Gas Reporter - January 2016 - 6
American Oil and Gas Reporter - January 2016 - 7
American Oil and Gas Reporter - January 2016 - 8
American Oil and Gas Reporter - January 2016 - 9
American Oil and Gas Reporter - January 2016 - 10
American Oil and Gas Reporter - January 2016 - 11
American Oil and Gas Reporter - January 2016 - 12
American Oil and Gas Reporter - January 2016 - 13
American Oil and Gas Reporter - January 2016 - 14
American Oil and Gas Reporter - January 2016 - 15
American Oil and Gas Reporter - January 2016 - 16
American Oil and Gas Reporter - January 2016 - 17
American Oil and Gas Reporter - January 2016 - 18
American Oil and Gas Reporter - January 2016 - 19
American Oil and Gas Reporter - January 2016 - 20
American Oil and Gas Reporter - January 2016 - 21
American Oil and Gas Reporter - January 2016 - 22
American Oil and Gas Reporter - January 2016 - 23
American Oil and Gas Reporter - January 2016 - 24
American Oil and Gas Reporter - January 2016 - 25
American Oil and Gas Reporter - January 2016 - 26
American Oil and Gas Reporter - January 2016 - 27
American Oil and Gas Reporter - January 2016 - 28
American Oil and Gas Reporter - January 2016 - 29
American Oil and Gas Reporter - January 2016 - 30
American Oil and Gas Reporter - January 2016 - 31
American Oil and Gas Reporter - January 2016 - 32
American Oil and Gas Reporter - January 2016 - 33
American Oil and Gas Reporter - January 2016 - 34
American Oil and Gas Reporter - January 2016 - 35
American Oil and Gas Reporter - January 2016 - 36
American Oil and Gas Reporter - January 2016 - 37
American Oil and Gas Reporter - January 2016 - 38
American Oil and Gas Reporter - January 2016 - 39
American Oil and Gas Reporter - January 2016 - 40
American Oil and Gas Reporter - January 2016 - 41
American Oil and Gas Reporter - January 2016 - 42
American Oil and Gas Reporter - January 2016 - 43
American Oil and Gas Reporter - January 2016 - 44
American Oil and Gas Reporter - January 2016 - 45
American Oil and Gas Reporter - January 2016 - 46
American Oil and Gas Reporter - January 2016 - 47
American Oil and Gas Reporter - January 2016 - 48
American Oil and Gas Reporter - January 2016 - 49
American Oil and Gas Reporter - January 2016 - 50
American Oil and Gas Reporter - January 2016 - 51
American Oil and Gas Reporter - January 2016 - 52
American Oil and Gas Reporter - January 2016 - 53
American Oil and Gas Reporter - January 2016 - 54
American Oil and Gas Reporter - January 2016 - 55
American Oil and Gas Reporter - January 2016 - 56
American Oil and Gas Reporter - January 2016 - 57
American Oil and Gas Reporter - January 2016 - 58
American Oil and Gas Reporter - January 2016 - 59
American Oil and Gas Reporter - January 2016 - 60
American Oil and Gas Reporter - January 2016 - 61
American Oil and Gas Reporter - January 2016 - 62
American Oil and Gas Reporter - January 2016 - 63
American Oil and Gas Reporter - January 2016 - 64
American Oil and Gas Reporter - January 2016 - 65
American Oil and Gas Reporter - January 2016 - 66
American Oil and Gas Reporter - January 2016 - 67
American Oil and Gas Reporter - January 2016 - 68
American Oil and Gas Reporter - January 2016 - 69
American Oil and Gas Reporter - January 2016 - 70
American Oil and Gas Reporter - January 2016 - 71
American Oil and Gas Reporter - January 2016 - 72
American Oil and Gas Reporter - January 2016 - 73
American Oil and Gas Reporter - January 2016 - 74
American Oil and Gas Reporter - January 2016 - 75
American Oil and Gas Reporter - January 2016 - 76
American Oil and Gas Reporter - January 2016 - 77
American Oil and Gas Reporter - January 2016 - 78
American Oil and Gas Reporter - January 2016 - 79
American Oil and Gas Reporter - January 2016 - 80
American Oil and Gas Reporter - January 2016 - 81
American Oil and Gas Reporter - January 2016 - 82
American Oil and Gas Reporter - January 2016 - 83
American Oil and Gas Reporter - January 2016 - 84
American Oil and Gas Reporter - January 2016 - 85
American Oil and Gas Reporter - January 2016 - 86
American Oil and Gas Reporter - January 2016 - 87
American Oil and Gas Reporter - January 2016 - 88
American Oil and Gas Reporter - January 2016 - 89
American Oil and Gas Reporter - January 2016 - 90
American Oil and Gas Reporter - January 2016 - 91
American Oil and Gas Reporter - January 2016 - 92
American Oil and Gas Reporter - January 2016 - 93
American Oil and Gas Reporter - January 2016 - 94
American Oil and Gas Reporter - January 2016 - 95
American Oil and Gas Reporter - January 2016 - 96
American Oil and Gas Reporter - January 2016 - 97
American Oil and Gas Reporter - January 2016 - 98
American Oil and Gas Reporter - January 2016 - 99
American Oil and Gas Reporter - January 2016 - 100
American Oil and Gas Reporter - January 2016 - 101
American Oil and Gas Reporter - January 2016 - 102
American Oil and Gas Reporter - January 2016 - 103
American Oil and Gas Reporter - January 2016 - 104
American Oil and Gas Reporter - January 2016 - 105
American Oil and Gas Reporter - January 2016 - 106
American Oil and Gas Reporter - January 2016 - 107
American Oil and Gas Reporter - January 2016 - 108
American Oil and Gas Reporter - January 2016 - 109
American Oil and Gas Reporter - January 2016 - 110
American Oil and Gas Reporter - January 2016 - 111
American Oil and Gas Reporter - January 2016 - 112
American Oil and Gas Reporter - January 2016 - 113
American Oil and Gas Reporter - January 2016 - 114
American Oil and Gas Reporter - January 2016 - 115
American Oil and Gas Reporter - January 2016 - 116
American Oil and Gas Reporter - January 2016 - 117
American Oil and Gas Reporter - January 2016 - 118
American Oil and Gas Reporter - January 2016 - 119
American Oil and Gas Reporter - January 2016 - 120
American Oil and Gas Reporter - January 2016 - 121
American Oil and Gas Reporter - January 2016 - 122
American Oil and Gas Reporter - January 2016 - 123
American Oil and Gas Reporter - January 2016 - 124
American Oil and Gas Reporter - January 2016 - 125
American Oil and Gas Reporter - January 2016 - 126
American Oil and Gas Reporter - January 2016 - 127
American Oil and Gas Reporter - January 2016 - 128
American Oil and Gas Reporter - January 2016 - 129
American Oil and Gas Reporter - January 2016 - 130
American Oil and Gas Reporter - January 2016 - 131
American Oil and Gas Reporter - January 2016 - 132
American Oil and Gas Reporter - January 2016 - 133
American Oil and Gas Reporter - January 2016 - 134
American Oil and Gas Reporter - January 2016 - 135
American Oil and Gas Reporter - January 2016 - 136
American Oil and Gas Reporter - January 2016 - 137
American Oil and Gas Reporter - January 2016 - 138
American Oil and Gas Reporter - January 2016 - 139
American Oil and Gas Reporter - January 2016 - 140
American Oil and Gas Reporter - January 2016 - 141
American Oil and Gas Reporter - January 2016 - 142
American Oil and Gas Reporter - January 2016 - 143
American Oil and Gas Reporter - January 2016 - 144
American Oil and Gas Reporter - January 2016 - 145
American Oil and Gas Reporter - January 2016 - 146
American Oil and Gas Reporter - January 2016 - 147
American Oil and Gas Reporter - January 2016 - 148
American Oil and Gas Reporter - January 2016 - 149
American Oil and Gas Reporter - January 2016 - 150
American Oil and Gas Reporter - January 2016 - 151
American Oil and Gas Reporter - January 2016 - 152
American Oil and Gas Reporter - January 2016 - 153
American Oil and Gas Reporter - January 2016 - 154
American Oil and Gas Reporter - January 2016 - 155
American Oil and Gas Reporter - January 2016 - 156
American Oil and Gas Reporter - January 2016 - 157
American Oil and Gas Reporter - January 2016 - 158
American Oil and Gas Reporter - January 2016 - 159
American Oil and Gas Reporter - January 2016 - 160
American Oil and Gas Reporter - January 2016 - 161
American Oil and Gas Reporter - January 2016 - 162
American Oil and Gas Reporter - January 2016 - Cover3
American Oil and Gas Reporter - January 2016 - Cover4
http://staging.nxtbook.com/nxtbooks/aogr/201702/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201701/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201612/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201611/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201610/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/pbios2016_programguide/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201609/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201608/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201607/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201606/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201605/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201604/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201603/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201602/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201601/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201512/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201511/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201510/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201509/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201508/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201507/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201506/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201505/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201504/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201503/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201502/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201501/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201412/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201411/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201410/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201409/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/pbios2014_programguide/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201408/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201407/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201406/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201405/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201404/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201403/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201402/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201401/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201312/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201311/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201310/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201309/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201308/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201307/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201306/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201305/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201304/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201303/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201302/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201301/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201212/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201211/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201210/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201209/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/2012_pbios/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201208/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201207/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201206/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201205/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201204/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201203/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201202/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201201/stage.php
http://staging.nxtbook.com/nxtbooks/demo/aogr_clone/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201112/stage.php
https://www.nxtbookmedia.com