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The global oil & gas industry continues to be an environment of constant change. Over the past several years, the industry has been characterized by competition, mergers & acquisitions, master limited partnership (MLP) formation and the privatization of state-owned international companies.
These dynamics are reflective of an industry experiencing significant price volatility for its products, technological advances in production and consumption, regulatory changes, and increasing environmental requirements. With global supply and demand closely in balance, market pricing is very sensitive to short-term imbalances. Over the longer term, there are increasing concerns that the global growth in demand, particularly from emerging countries such as China and India, may create a structural supply deficit.
Faced with such an environment, the oil & gas industry is increasing its investment in the exploration and development of unconventional supply sources such as oil shale and oil sands. Several of the larger energy companies are beginning to utilize new technologies to boost U.S. domestic production of natural gas in unconventional gas fields. Additionally, the Energy Policy Act of 2005 has provided incentives to expand existing refineries and build new ones. These and other initiatives worldwide will lead to significant investment in infrastructure by the oil & gas industry as well as a greater need for companies to more effectively manage their capital assets.
VRC has more than 30 years of experience providing valuation and financial advisory services to companies in the oil & gas industry. Our extensive experience in the valuation of midstream (e.g., pipelines, terminals, tank farms, etc.) and downstream (e.g., refineries, gas processing plants, petrochemical plants, chemical plants, service stations, etc.) assets is recognized throughout the industry. As a member of the Coalition for Publicly Traded Partnerships, VRC has unparalleled experience assisting MLPs and their legal and financial advisors with the valuation of tangible and intangible MLP assets.
With our in-depth industry knowledge and experience, VRC is well positioned to assist companies in the oil & gas industry with the valuation of their capital assets in a period of increasing uncertainty.
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