May 20, 2013
W&T Offshore is an independent petroleum company with net proved reserves of 638.8 Bcfe and an almost-even reserve split between oil and natural gas. It operates exclusively in the Gulf of Mexico. Since 2003, annual production from shallow Gulf Shelf has been declining, bad news for W&T because eight of its ten properties are in that region. But rising oil prices have buoyed the company's revenues, and are giving it the financial incentive to enter the expensive and risky deepwater oil exploration sector. Though this may, in the future, let the company move off the maturing Shelf, thus far the company has had little success, as deepwater operations have generated only 3% of its production. W&T competes with the oil majors, as well as with Apache, Devon Energy, and Bois D'Arc Energy.
(Read more at Wikinvest
) - Business and Financials
- Trends and Forces
- A Maturing Gulf Shelf Threatens W&T's Long-Term Viability
- Rising Oil Prices Mean W&T's Revenue Grows Even Faster than Production
- High Oil Prices Have Lead W&T to Invest in Deepwater Oil Exploration
- Legislation Supporting the Development of Renewable Energy Threatens the Long-Term Strength of Hydrocarbons in the U.S.
- Competition
- References
