Energy Indicators

INDUSTRY NEWS

The Brent oil price dropped this month to $108 a barrel on April 21, representing a monthly decrease of 6%. The WTI price also fell, to $103, a monthly decrease of 6%. The recent decline in oil prices was driven by the market weighing mixed supply signals, as well as the IMF cutting economic growth forecasts and warning of higher inflation.

North America’s oil and gas sector has been grappling with over a year of price inflation, long before the Russia-Ukraine conflict started pushing up oil prices. Now, with significant economic sanctions placed on Russia, higher oil prices have ushered in new potential for widespread price inflation in the O&G industry. Well stimulation services, land rigs and onshore construction are the North American service segments forecast to experience the largest incremental uptick in CAPEX due to price inflation.

US O&G production rebounded after a temporary dip in January. The Permian is expected to drive the US oil production growth in 2022-2024, with additions coming from both the Texas and New Mexico parts of the basin. US oil rig count also increased to 514 in April, highlighting robust momentum in drilling in the Permian and other regions as strong O&G prices prompt producers to step up activity. Operators are succeeding in expanding operations despite heavy headwinds in terms of supply chain bottlenecks and labour shortages.

In renewables, the NY Bight offshore wind auction held by the US Bureau of Ocean Energy Management (BOEM) at the end of February, was the US’s largest round to date and resulted in a record $4.4bn in total winning bids for the six lease sites on offer. Several of the winning bids came from large international energy consortiums that included Shell and TotalEnergies as well as UK and European grid and power companies. Bight Wind Holdings LLC, a joint venture between RWE Renewables and National Grid, won the largest acreage in the auction for a record $1.1bn. While the NY Bight auction is seen as a major step for the US in reaching its 30GW offshore wind target by 2030, it is forecast that most of the capacity awarded in this auction will become fully operational post-2030.

PIPER SANDLER NEWS

Piper Sandler served as the exclusive financial adviser to Southcross as the Company sold the Upper Gulf Coast pipeline system to Max Energy. Southcross is a growthoriented natural gas midstream company that operates across the Eagle Ford Shale in South Texas.

Piper Sandler also served as financial adviser to Sentinel Capital Partners on its acquisition of SPL. SPL is a market leader in the testing, inspection and certification services for the energy and environmental markets.