The rapid growth of Eagle Ford shale production reflects its fiscal and economic advantages over other natural gas and oil basins, providing companies with some of the highest returns of any unconventional play in the U.S., according to a Fitch Ratings report.
The Eagle Ford shale region benefits from high liquids content, high initial oil production rates, an established pipeline and midstream infrastructure, and proximity to gulf coast energy and petrochemicals markets. Furthermore, Fitch notes that producers and infrastructure developers face relatively fewer environmental, political, and regulatory obstacles in energy-friendly Texas than in competing shale basins such as the Marcellus and Utica.
The ramp-up in production has in turn spurred the development of additional gathering, processing, fractionation, storage, and transportation infrastructure. Numerous oil and natural gas-related midstream and pipeline projects will be completed in late 2012 to mid-2013, which Fitch believes should help relieve temporary bottlenecks.
In contrast to the Marcellus region, no individual midstream or pipeline company has outsized exposure to the Eagle Ford region and current investments are not generally viewed as 'make or break' commitments for individual issuers in the space. Financing decisions made by companies have been generally balanced. Utilization of joint venture (JV) structures has allowed for the efficient sharing of assets between developers and lowered external financing requirements.
The full commentary 'Eagle Ford Shale Report' is available at 'www.fitchratings.com.' Included in the report is analysis for each of the major companies with significant Eagle Shale exposure.
This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser. More
Source: http://feedproxy.google.com/~r/NorthAmericaHeadlines/~3/OGPfCoQR9qk/e20ab2145a71.aspx
live free or die hard carlos pena amanda bynes arrested f 18 jet crash in virginia beach john tortorella nicki minaj beez in the trap video
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.