Blog

Beware the Private Equity Drag Along Clause [Gaille Energy Blog Issue 15]

  • Posted by scottgaille
  • On January 23, 2016
  • 0 Comments
  • "drag along"
Last year’s tally of bankrupt exploration and production companies stands at 42, with debt defaults of ~$17 billion. Then there are the zombie energy companies that simply assigned their assets to lenders outside of bankruptcy. Who is the likely buyer of all these assets? It’s probably not Big Oil. The majors may not be “distressed,” […]
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Zombie Energy Companies [Gaille Energy Blog Issue 14]

  • Posted by scottgaille
  • On January 16, 2016
  • 0 Comments
  • "zombie company" "zombie energy company"
The term “zombie company” describes firms that “are still trading, and so half living, but not able to invest or grow to pay off their debts, which is why they are also considered half dead” (Wikipedia – “Zombie Company”). The oil crash is now minting an army of zombie companies. The typical “zombie energy company” […]
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The Shale Fallacy: Why American Shale May Not Be a Reliable Swing Producer [Gaille Energy Blog Issue 13]

  • Posted by scottgaille
  • On January 8, 2016
  • 0 Comments
  • "lower for longer" "swing producer"
The news is filled with articles proclaiming that American shale has become the new “swing” producer in the global oil market. This means that other nations, such as Saudi Arabia, can continue to produce as much oil as possible, at constant rates. When surpluses (or shortages) ensue, American shale producers simply reduce (or increase) their […]
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Former Allen & Overy Partner Charged in Petrobras Corruption Case [Gaille Energy Blog Issue 12]

  • Posted by scottgaille
  • On January 1, 2016
  • 0 Comments
  • FCPA
In a surprising move, the Brazilian Public Prosecutor’s Office has levied corruption charges against the former chief compliance officer (the “CCO”) of SBM Offshore – who joined SBM from Allen & Overy, where he co-chaired the firm’s corporate practice group. The CCO was named along with other SBM executives in Brazil’s ongoing bribery probes. At […]
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The Energy Phoenix: Stories of Resilience in the Oil & Gas Industry [Gaille Energy Blog Issue 11]

  • Posted by scottgaille
  • On December 24, 2015
  • 0 Comments
  • energy phoenix, oil crash
The last year was a difficult one for many of us in the oil and gas business. The assets so carefully accumulated by our companies were devastated by low commodity prices. It didn’t matter how perfectly the wells were drilled or how cleverly the contracts were drafted. The assets simply did not make money. Treasuries […]
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Elon Musk & Han Solo: New Space Law Establishes Property Rights for Asteroid Mining [Gaille Energy Blog Issue 10]

  • Posted by scottgaille
  • On December 18, 2015
  • 0 Comments
  • asteroid mining, space law
“[W]e are at the dawn of a new era in commercial space exploration.” – Elon Musk Last month, President Obama signed the U.S. Commercial Space Launch Competitiveness Act (“Space Competitiveness Act”). Among its provisions was the following: “A United States citizen engaged in commercial recovery of an asteroid resource or a space resource under this […]
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Has the Oil Crash Ended South America’s 21st Century Socialism? [Gaille Energy Blog Issue 9]

  • Posted by scottgaille
  • On December 11, 2015
  • 0 Comments
  • venezuela
Dramatic political changes are underway across South America. Earlier this week, Venezuelans handed the opposition control over their National Assembly – the first time in almost two decades that Hugo Chavez and his successors had lost a national election. It’s hardly a surprise when polls show that 89% of Venezuelans believe their country is faring […]
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Energy Evolution: What the Climate Change Conference Can Learn from Charles Darwin [Gaille Energy Blog Issue 8]

  • Posted by scottgaille
  • On December 4, 2015
  • 0 Comments
  • climate change, paris climate change conference
“It is not the strongest of the species that survives, not the most intelligent that survives. It is the one that is the most adaptable to change.” – Charles Darwin On my recent visit to the Galapagos Islands, naturalists were abuzz with worry about global warming. What would become of the islands’ wildlife if their […]
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Use of Independent Voting to Estimate Project Uncertainty [Gaille Energy Blog Issue 7]

  • Posted by scottgaille
  • On November 27, 2015
  • 0 Comments
  • Independent Voting, Wisdom of Crowds
The modeling of uncertainty is fundamental to board approvals of energy investments. Technical teams analyze data, seeking to estimate (i) the likelihood of hydrocarbon accumulation (or chance of success) and (ii) how much oil and gas will be produced over time – including initial production rates, decline profiles, and recoverable reserves. Companies rely on these […]
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Could Chemical and Gamma-Emitting Tracers Be Used to Enforce the Oil Embargo Against ISIS? [Gaille Energy Blog Issue 6]

  • Posted by scottgaille
  • On November 21, 2015
  • 0 Comments
  • ISIS, ISIS oil, oil smuggling
ISIS reportedly produces about 40,000 barrels of oil per day. Even assuming a black market discount of $20 per barrel, it is annually netting ~$300 million. Coalition planes often have targeted both the ISIS oil fields and its tanker trucks. Not surprisingly, with revenues of $1 million a day, ISIS has been able to hire […]
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