Oil Council Asks Doug Glass About Oil and Gas in 2013
Doug Glass, a Houston-based partner in Akin Gump’s energy and global transactions practice was asked by the Oil Council “What excites you most about the independent O&G sector in 2013, and what risks will present the greatest obstacles to growth?”
Glass responded, “There are a number of factors that could indicate that 2013 will be a boom year for the independents” and listed the recent relatively stable oil price regime; space created for independents in smaller and mid-sized projects by the majors’ focus on larger projects; and the continued opening of new frontiers in emerging markets.
He did, however, temper his remarks with a reminder that “On the downside, there remain many obstacles to growth for the independents, including questions on whether the capital markets will come back to mid-2000 levels. Also, a lack of infrastructure in frontier areas where some independents operate constrain their ability to quickly turn exploration success into cash flow, and turnaround times are crucial.”
Glass noted that new independent start-ups are ongoing and “the playing field always seems to have its share of risk takers in the independent space, some of whom will no doubt walk away with big prizes.”