What Falling Oil Prices Mean for Exploration Companies

The video discusses the 2015 outlook for capital spending and EMPs, highlighting budget adjustments due to the new oil environment. It examines the impact of credit availability on EMPs' flexibility and activity. The potential effects of oil drilling curtailment on gas output and market balance are analyzed. Valuation levels for oil and gas are compared to historical lows. Finally, challenges faced by exploration and production companies are explored, focusing on demand-supply imbalances.

What is one of the main focuses for EMPs in setting their budgets for 2015?

• Reducing environmental regulations

• Expanding into new markets

• Recalibrating expectations and spending

• Increasing employee salaries

How does credit availability affect EMPs?

• It increases their market share

• It reduces their need for external partnerships

• It enhances their technological capabilities

• It impacts their flexibility and cash flow

What could be a consequence of curtailed oil drilling growth on gas production?

• Increased gas output

• Lower gas prices

• Higher gas demand

• Tighter gas supply balances

What is a challenge faced by exploration and production companies in replicating historical gains?

• Increased competition

• Demand-supply imbalances

• Technological advancements

• Regulatory changes

What is the current trading status of crude oil and gas levered EMPs relative to historical lows?

• At 2015 highs

• Below 2008-2009 lows

• At 2008-2009 highs

• Above 2008-2009 lows