E&P Companies Cite Insufficient Pipeline Capacity Among Fastest Growing Potential Threats

摘要

According to a study released by BDO USA, LLP, 80% of the 100 biggest publicly traded exploration and production companies by revenue listed insufficient pipeline, storage or trucking capacity as among the potential risks to their business for 2013. The study was conducted on the companies' SEC 10-K filings, which list possible threats to their financial performance. Although many listed issues were more widespread, including some 100% ratings, these did not move much year over year, indicating that they are likely viewed as part of the normal business risks in the industry. Pipeline capacity concerns, however, were up 17% since 2012 and 51% since 2011, the largest two-year jump in prevalence of any issue. Concern about changes in demand for oil and natural gas was up as well, to 91% from 76% in 2011. Clark Sackschewsky, a partner with natural resources practice at BDO, said the thought the two trends were related.