•  
  •  
  •  
  •  
  •  
  • Untitled Document
    Untitled Document

    A review of Thomas Petrie's Following Oil

    Evaluating the future while learning from past mistakes

    Thomas Petrie's new book, Following Oil, published by the University of Oklahoma Press, offers substantive insight into the petroleum industry based on the author's more than four decades of experience as a banking executive, oil and gas analyst, and industry advisor. During his career, Petrie has advised on more than $200 billion of energy-related M&A transactions.

    In Following Oil, Petrie shares his thoughts on historic events from the rise of the Organization of Petroleum Exporting Countries (OPEC) to the current oil and gas renaissance in North America that he attributes to "technological advances" that enabled the economic development of the continent's vast unconventional resources. This has allowed the United States to reduce its dependency on oil imports and to start thinking about energy independence.

    A review of Thomas Petrie's Following Oil

    Asked what lessons are to be learned from his book, Petrie noted five that have broad applicability to energy:

    • Markets continuously endeavor to work, but do so in their own time and at their own pace.
    • Flawed economic and policy incentives ultimately cause or at least exacerbate supply shortfalls (or sometimes undesirable surpluses).
    • Powerful regenerative economic forces can result from application of well-incentivized capital focused on high-priority societal problems or needs.
    • Periodic consolidation and reorganization (via mergers and sales) are integral to the evolving natural order of the petroleum sector economy.
    • Shifting global macro-economic drivers can overwhelm even a well-executed plan, thus necessitating midcourse adjustments.

    As to the future of energy, Petrie notes, "We have learned much from our past mistakes and are now capitalizing on recent technological advances. Also, if used effectively, natural gas can provide a much-needed multi-decade transition to [new energy sources]. In sum, we have much improved optionality for meeting our upcoming energy needs."

    Related Articles

    Blacksands Pacific Group to reorganize its international subsidiaries

    08/13/2014

    The Blacksands Pacific Group Inc. has completed the reorganization of its international subsidiary business and operations.

    APV and Real Options

    08/11/2014

    Petroleum projects are hard to value because they are limited in time, so perpetuities cannot be used.

    Resurgent IPO market provides fresh capital for increasing deal activity

    07/18/2014

    PLS reports that year-to-date, the upstream A&D markets are significantly outperforming year-ago comparisons.

    Backwardation in the market

    07/18/2014 The current combination of steeply backwardated crude oil markets and historically low volatility is creating a tough environment for producers who need to lock in forward prices to satisfy their e...

    Ease export restrictions on US crude

    07/18/2014 Is it just me or is everyone talking about lifting the ban on US crude oil exports? I haven't had a conversation with an oil producer, investment banker, analyst, or consultant recently where the s...

    More Oil & Gas Financial Articles

    Blacksands Pacific Group to reorganize its international subsidiaries

    Wed, Aug 13, 2014

    The Blacksands Pacific Group Inc. has completed the reorganization of its international subsidiary business and operations.

    APV and Real Options

    Mon, Aug 11, 2014

    Petroleum projects are hard to value because they are limited in time, so perpetuities cannot be used.

    Resurgent IPO market provides fresh capital for increasing deal activity

    Fri, Jul 18, 2014

    PLS reports that year-to-date, the upstream A&D markets are significantly outperforming year-ago comparisons.

    Backwardation in the market

    Fri, Jul 18, 2014

    The current combination of steeply backwardated crude oil markets and historically low volatility is creating a tough environment for producers who need to lock in forward prices to satisfy their enterprise value protection, capital provider requirements, or cash flow needs for drilling programs.

    Ease export restrictions on US crude

    Fri, Jul 18, 2014

    Is it just me or is everyone talking about lifting the ban on US crude oil exports? I haven't had a conversation with an oil producer, investment banker, analyst, or consultant recently where the subject didn't come up.

    Most Popular

    Oil & Gas Jobs

    Search More Job Listings >>
    Subscribe to OGFJ