Major's U. S. retrenchment causes sale property glut

Journal Article · Mon Aug 24 04:00:00 EDT 1992 · Oil and Gas Journal; (United States)

OSTI ID:7283447

Koen, A D; Price, R B

This paper reports that major U.S. oil and gas companies' accelerated rationalization of U.S. upstream assets in recent years has left a glut of available producing leases in a capital starved market. The expanding divestment of such properties in the U.S. steams largely from a shift in upstream emphasis by majors to areas outside the U.S. Continuing a process that began in earnest for some companies before the 1986 oil price collapse, companies are assessing individual leases and wells for their strategic fit. The process has resulted in change in direction for majors, which until 1989 had been net buyer of production, and has put up for potential sale as much as $10 billion worth of U.S. Producing leases. However, the number of buyers are few, and the pace of sales is slow. Lack of capital and oil and gas price uncertainty are fueling a standoff between buyers and sellers, although innovative agreements and financing have pushed through some large transactions.

• OSTI ID: 7283447
• Journal Information: Oil and Gas Journal; (United States), Journal Name: Oil and Gas Journal; (United States) Vol. 90:34; ISSN 0030-1388; ISSN OIGJA
• Country of Publication: United States
• Language: English

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