This is going to leave a mark – for a long time.   It will be a painful year end for all oil and gas companies, especially the public companies. The price collapse will cause huge reserve values to be written off and collateral values will plummet.  I particularly enjoyed Dr. John Seidle’s comments on “where do the reserves go?”  The molecules are still in the ground, they just can’t be produced economically at this price.

SEC Reserves Price Deck Down 48% for 2016

Low oil prices bring SEC price deck down to $50.13

With the end of 2015 quickly approaching, and companies preparing for a lower Securities Exchange Commission (SEC) price deck for reserves reporting, proved reserves for oil and gas companies are likely to diminish significantly in the near future…..

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Related earlier story that discusses how pricing will affect oil and reserves reported at year end:

What will the New SEC Price Deck Mean for Reserves?

Read more…….

 

 

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About the author

Tom Hohn is a petroleum engineer who has worked in the oil and gas industry for 40+ years. He has endured several booms and busts during that time. In reality, the tough years outnumber the good years, but it is a great industry that has treated him well.