Effects of oil price fall on the betas in the Unconventional Oil & Gas Industry

Understanding corporate debt from the oil market perspective

“… Korotin et al (2017) , for instance, argue that during severe oil price declines, oil companies refinancing becomes extremely costly. Teti et al (2020) demonstrates this point more concretely. They consider the effect of oil price fall from US$115/barrel in June 2014 to <US$35/barrel in February 2016.…”

“…With oil companies, oil price shocks can be devastating to their liquidity and cash flow positions more than oil price shocks are to non-oil firms. The literature argues that severe oil price shocks and global recessions which drive down oil prices represent liquidity and cash flow stress for oil firms (see Korotin et al, 2017 ; Teti et al, 2020 ). Korotin et al (2017) , for instance, argue that during severe oil price declines, oil companies refinancing becomes extremely costly.…”

Advances in Liquid Nitrogen Fracturing for Unconventional Oil and Gas Development: A Review

“…Global unconventional oil and gas reserves are vast and are mainly concentrated in North America, Central Asia–Russia, Central and South America, Asia-Pacific, and the Middle East. − The size of the global unconventional oil reserve is 0.5–1.9 times that of the conventional oil reserve. The size of the global unconventional natural gas reserve is 1.7–13.8 times that of the conventional natural gas reserve. − There was a major breakthrough in North American unconventional natural gas exploration in 2000. Since then, countries such as the United States, Australia, and Canada have engaged in the industrial production of unconventional oil and gas. − Unconventional oil and gas reserves are hosted in complex geological formations that are deep underground. − To improve the efficiency of unconventional oil and gas extraction, it is necessary to artificially increase the permeability of the reservoir.…”