Lenders

What Lenders and Investors In E&P Companies Need To Know As Oil Prices Drop

Oil Prices Fall To Lowest Level In Four Months

“In 2008, the United States produced on average approximately 5 million barrels of oil a day. By the end of 2014, that number had increased to more than 9 million barrels and the Energy Information Agency predicts production will continue to increase through 2015,” explains Latham & Watkins partner Michael Chambers. “However, during that same period worldwide demand increased by less than 1 million barrels a day, and in the US oil consumption has actually declined since 2008. The fact that US production has been growing faster than US consumption, and even world growth, together with the slowing of growth of some of the world’s major economies, has resulted in a class oversupply situation.”

PACE Yourself

Debate Continues into Future of UK Energy Generation

Property Assessed Clean Energy (PACE) loans allow property owners to finance clean energy improvements to their properties generally secured by property liens senior to mortgages through tax assessments. Moody’s recently released a special comment expressing some concerns and not-so-subtle hints that it thinks that lenders and securitizers should take PACE programs seriously.