Daily Archives: December 5, 2014

Implications of the Drop in Crude Prices

Sub-$70/barrel oil is rapidly changing the operational climate for US oil and gas production. As highlighted in the December 4th Houston Business Journal article, “Oil price drops means businesses need to mitigate risk now,” a reevaluation of financial risk and mitigation measures is necessary to remain viable and profitable in this new environment. The article focuses at the CFO level of financial evaluation and posed the following hypothesis: “The survivors will be those producers that […]