What a difference 12 months makes. In last year’s buoyant price setting, government regulations that shackled growth were a major concern. But this year’s Grant Thornton LLP survey of U.S. oil and gas companies, in partnership with Hart Energy, exposed the recessionary struggles of many companies. This infographic reveals the most pressing concerns of these companies.

1. found access to new capital to be
more difficult this year than last year.54%
Operational barriers to growth
2015 Grant Thornton Survey of Upstream U.S. Oil and Gas Companies
Lower oil prices force energy
companies to rethink strategy
Capital considerations that have
the greatest impact on strategy
Looking forward: Respondents’ price and capital spending projections
Last year’s top barrier, regulatory issues, came in fourth.
Top threats to your business
Budgetary constraints
Access to capital
Restructuring my asset portfolio
Access to
necessary capital
Determining the right
mix of capital sources
Infrastructure challenges
In 2014, respondents said staffing was a priority amid
shortage of workforce. This year, 29% stated that
necessary downsizing of personnel is their
biggest challenge.
Regulatory hurdles
and delays
32%
Safety and
environmental issues
Ability to close
on acquisitions
and divestitures
44%
Terms and
conditions
Henry Hub average natural gas price
(per 1,000 cubic feet)
West Texas Intermediate crude oil
price range (per barrel)
2015 2016 2017
$80
$70
$60
$50
$40
$30
$50–$60
2015 2016 2017
$5
$4
$3
$2
$1
$0
$3.10
$3.44
$4.77
$60–$70
$70–$80
42+58+D 77+23+D 60+40+D 33%37%44%
In response to these conditions,
companies are changing direction of
strategy for the next 1–3 years
Pull back to a
few core areas
Stay private Sell or merge
40% 38% 34%
Operational risks
“Over the next 12 months and beyond, both exploration and production and service companies will have
to deal with the fallout from the steady decline in oil prices over a sustained period of time. There will be
companies that will need to refinance or restructure to achieve a level of performance that will appease
creditors and shareholders.”
Bryan Benoit, Partner, Forensic and Valuation Services; Leader, Advisory Services for Energy Practice, Grant Thornton LLP
“The industry consistently emerges from slumps
better-positioned, and well-managed companies
with solid balance sheets come back stronger.
The current cycle shouldn’t be any different.”
Kevin Schroeder, Leader, Energy, Grant Thornton LLP
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About the 2015 Grant Thornton LLP Survey of Upstream U.S. Oil and Gas Companies
The survey is based on answers from 545 respondents collected in July 2015. Respondents
were C-suite and senior executives from U.S. independent producers, midstream operators, oil
field service companies and financial companies. Participant titles included CEO, COO, CFO, CIO,
senior vice president, board members, general counsel, and tax and finance professionals.
32%
Capital spending
increase in 2016
Domestic Foreign
More than 20% 0% 0%
Up to 20% 36% 13%
Decrease 32% 10%
No charge 27% 20%
35%
22%
11%
Gone is the booming climate and record-setting growth and production from 2014. With oil prices
halved, many companies have struggled. They are adjusting strategy and downsizing staff to focus
on operational challenges including budgetary constraints and capital considerations.