Guest Post courtesy of happy Sentieo client and energy expert Philip Dunham .
2016 was a volatile year for oil and gas. WTI traded to lows in the mid $20s, then rebounded to finish the year around $54. The road to recovery for the energy industry in 2017 can be characterized as cautiously optimistic as WTI prices have stabilized over the past couple of weeks and energy companies have started to slowly hire and ramp activity.
There were a number of themes that emerged as the year progressed including:
- Rebounding rig counts and the return of service cost inflation
- The Dallas Fed and Permian-focused E&Ps expressing concerns over rich Permian Basin acreage valuations
- Another year of low oil prices and OPEC production cuts
- The RINsanity of ethanol blending and a possible border adjustment tax
- Natural gas coming out from the shadow of oil with demand catching up to supply
We will review the themes of 2016 and those themes going forward into 2017. Read More