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Gone is the booming climate and record-setting growth and production from 2014. With oil prices
halved, many companies have struggled. They are adjusting strategy and downsizing staff to focus
on operational challenges including budgetary constraints and capital considerations.
+40D 58+D
77+60
23+D 42+
35%
Budgetary constraints
22%
44%
Access to capital
11%
37%
Terms and
conditions
54%
33%
Access to
necessary capital
Infrastructure challenges
In 2014, respondents said staffing was a priority amid
shortage of workforce. This year, 29% stated that
necessary downsizing of personnel is their
biggest challenge.
Operational risks
44%
32%
32%
Regulatory hurdles
and delays
Safety and
environmental issues
Ability to close
on acquisitions
and divestitures
40%
38%
34%
Pull back to a
few core areas
Stay private
Sell or merge
Over the next 12 months and beyond, both exploration and production and service companies will have
to deal with the fallout from the steady decline in oil prices over a sustained period of time. There will be
companies that will need to refinance or restructure to achieve a level of performance that will appease
creditors and shareholders.
Bryan Benoit, Partner, Forensic and Valuation Services; Leader, Advisory Services for Energy Practice, Grant Thornton LLP
$5
$4
$3.44
$60$70
$70
$3.10
$3
$60
$2
$50
$50$60
$40
$1
$0
$70$80
$80
$30
2015
2016
2017
2015
Capital spending
increase in 2016
2016
2017
Domestic
Foreign
0%
0%
Up to 20%
36%
13%
Decrease
32%
10%
No charge
27%
20%
About the 2015 Grant Thornton LLP Survey of Upstream U.S. Oil and Gas Companies
The survey is based on answers from 545 respondents collected in July 2015. Respondents
were C-suite and senior executives from U.S. independent producers, midstream operators, oil
field service companies and financial companies. Participant titles included CEO, COO, CFO, CIO,
senior vice president, board members, general counsel, and tax and finance professionals.
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