This week, I am attending EnerCom's The Oil and Gas Conference® here in Denver. The conference hosts more than 100 presenting companies and provides a unique opportunity to listen to the perspectives of senior management and key industry professionals concerning the future of the oil and gas industry.
So far, commodity prices are a major focus, along with recognizing the cyclical nature of the oil and gas industry; however, the good news is that this is not the first downturn that many of these players have seen. In fact, several folks here are saying that there are a lot of reasons to be bearish and they are saying it's a good time to buy assets at historically attractive pricing. Only time will tell – "Even Warren Buffett, who likes to buy when there's blood in the streets, has mostly exited energy."
Other crucial topics so far:
- Prudent hedges to protect cash flow – even though hedging in 2016 is not as favorable for most as the hedges in 2015
- Efficiencies – drilling better wells at lower costs
- Growth – focusing on fostering long term stability and growth
The discussions around hedging I have heard today express a much different view than the perspective on oil hedging that I read in CNN Money's article this morning "Hedge funds are losing billions on this bad trade."
Stay tuned for more from EnerCom over the next two days!
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
