2016 Year in Review for Oil & Gas

by Elizabeth Alford on January 2, 2017

Looking back over 2016, it seems that some relief may be in sight for the oil and gas industry after over two years of riding out low oil prices. Some highlights of the last year include:
  • – Oil prices hit a 13-year low of $26 a barrel in February 2016 and ended the year over $50 a barrel.
  • – Dealmaking in the U.S. oil and gas sector rebounded strongly in 2016 as mergers and acquisitions activity hit $69 billion, more than doubling the total of 2015.
  • –  Major oil and gas operators eliminated over 16,000 jobs between April and June, but by the second half of 2016, industry job postings were on the rise.
  • – U.S. rig count totals bottomed out at 404 in May and ended the year near 600.
  • – A February report by the International Energy Agency (IEA) says that shale will be back on top by 2021.
  • – There were 70 E&P bankruptcy filings for 2016, totaling $56,823,737,743.
  • – OPEC members and some non-OPEC producers agreed to cut production.
While things may be looking up, the road to recovery for the industry will likely be slow. Mineral owners must continue to stay stay informed and educated in order to protect their interests.
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