Representatives from across McGraw Hill Financial and leading industry professionals provide insights on evolution of the energy space
Houston, TX – April 29, 2015 – More than two-hundred energy professionals gathered at the Four Seasons Hotel in Houston, Texas, and hundreds more joined via live stream to hear perspectives from leading oil and gas experts on topics from crude supply and demand and regulation to investment opportunities and credit rating outlooks. Approximately two-thirds of attendees surveyed believe that crude prices have already hit lows for 2015, while only one-third believe that prices will dip lower.
“The presentations I heard at this conference reaffirmed my belief that while the domestic oil and gas sector continues to face major challenges, including more job losses, the ongoing innovation in the sector will allow the US to maintain its energy-price advantage over the rest of the world for years to come,” said Robert Bryce, Senior Fellow at the Manhattan Institute’s Center for Energy Policy and the Environment and Keynote Speaker.
Robert Bryce shared his views on the ongoing growth in the global coal market, how the shale revolution has undermined OPEC’s pricing power, and how the “Three R’s” – rigs, rednecks, and mineral rights -- have fueled the surge in domestic oil and gas production. Watch his presentation here.
The Symposium highlighted McGraw Hill Financial’s depth and breadth of knowledge within the sector, and the firm’s ability to provide market participants essential intelligence in the form of critical energy data and analytical tools. Speakers included professionals from four of McGraw Hill Financial’s iconic brands including Platts, Standard & Poor’s Ratings Services, S&P Dow Jones Indices, and S&P Capital IQ,as well as industry practitioners from Shell, CME Group, Duff & Phelps, and Alerian.
Implications of changing regulations and ongoing risks affecting the energy sector were a key discussion point of the day. “Since lifting of the oil export ban might be seen outside the oil industry as a potential catalyst for oil price increases, direct action does not seem likely given the political risks” said John Kingston, Director, Global Markets Insights and President, MHFI Global Institute in a panel entitled
The Commodity Evolution: Transformation in the U.S. Oil and Gas Markets. “However, many believe that given the ability to export condensate, and the fact that the definition of processed condensate is a bit vague, we may see people begin to stretch this definition with some minimal processing, and export more light crudes that way,” he continued. Watch this panel discussion here.
Likely changes in production levels were also discussed. Audience members were surveyed on their predictions on gas production for the upcoming year. Almost half the audience (47%) believes we will end the year at 68 billion cubic feet per day. In reviewing S&P Capital IQ oil and gas estimates, analyst consensus shows a 9% decrease for oil, and a 6% decrease for gas from their forecasts one year ago.
Deal activity, investment opportunities, and the evolution of the Master Limited Partnership (MLP) (spell out) structure were discussed a panel on the energy M&A landscape. Experts and practitioners in the field covered activity across the energy space from upstream, midstream, and downstream perspectives. “While our panelists noted that deal activity started off the year slowly, there is a lot of dry powder on the sidelines and it certainly seems that distressed and well valued opportunities alike may unfold throughout 2015 and beyond, ” said Thomas Yagel, Vice President of Market Development and moderator of the panel.
Throughout the year, S&P Capital IQ hosts events and webcasts on current events and issues affecting the energy space. Download the latest publication, Sector IQ: Energy focused on oil storage, energy stock performance, analyst estimates, and market perspectives. Download Sector IQ: Energy here.