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Petroleum industry

Oil Prices Drop, Companies in Oil & Gas Drilling & Exploration Sector Feel the Pinch

Strategic Insights

— 2 min read

Recent slumping oil prices have led to a decline in shares of several companies in the Oil & Gas Drilling & Exploration sector. Companies focused on offshore exploration, however, seem better positioned to capitalize on the situation, as the percent of oil obtained offshore is likely to increase. The Bedford Report has released equity research on Hyperdynamics Corporation and TransAtlantic Petroleum Ltd., providing insights into the companies' outlook and potential for growth. According to the International Energy Agency (IEA), global economic recovery may face threats that could cut oil demand growth next year by more than 60 percent.

Key Takeaways:

  • The Bedford Report highlights the potential for companies in the Oil & Gas sector to benefit from an increase in offshore oil exploration, citing Hyperdynamics Corporation and TransAtlantic Petroleum Ltd. as prime examples.
  • Hyperdynamics Corporation, an emerging independent oil and gas exploration and production company, is exploring for oil and gas offshore the Republic of Guinea in West Africa, with a 3-D seismic survey planned to cover approximately 4,000 square kilometers on its exploration block.
  • TransAtlantic Petroleum has seen a 91% increase in revenues in the second quarter of 2011 compared to the same period in 2010, and owns its own drilling rigs and oilfield service equipment used to develop its properties in Turkey and Morocco.
  • The International Energy Agency (IEA) forecast threats to global economic recovery may cut oil demand growth next year by more than 60 percent, while keeping underlying forecasts for 2011 and 2012 little changed.
  • Greg Priddy, director of global oil at consultancy Eurasia Group, believes that the main risk in the crude oil market over the next quarter will be to the downside due to very slow growth in the US economy and substantial demand destruction.
  • The Bedford Report aims to provide investors with accurate data and information to make informed investment decisions, with over 30,000 investment research reports and industry newsletters available to registered members.

Statistics:

  • The International Energy Agency (IEA) forecast threats to global economic recovery may cut oil demand growth next year by more than 60 percent.
  • Hyperdynamics Corporation has planned a 3-D seismic survey to cover approximately 4,000 square kilometers on its exploration block offshore the Republic of Guinea.
  • TransAtlantic Petroleum has seen a 91% increase in revenues in the second quarter of 2011 compared to the same period in 2010.

Sources:

  • "Hyperdynamics Corporation (NYSE: HDY)" by The Bedford Report
  • "TransAtlantic Petroleum Ltd. (NYSE Amex: TAT)" by The Bedford Report
  • The Wall Street Journal
  • Eurasia Group
  • International Energy Agency (IEA)

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