Notes from the National Oil and Gas Conference

Recently, I attended the National Oil & Gas Conference sponsored by the AIPCA in Denver. It was a great conference that covered many industry issues. The supply and price of gas was a common theme that was discussed by several of the speakers. The Marcellus Shale play impact was also at the center of most of the discussions.

According to the speakers, natural gas prices are going to be low for some time. With gas prices so low, one can only wonder why the rig counts haven’t dropped significantly. Certainly, drilling to protect leases is one reason, but another big reason is technology and efficiencies in the drilling process. It takessignificantly less to drill a well today compared to three years ago. In addition, as we learn more about the longevity of Marcellus wells and their production curve, it appears the gas supply is very strong.

Another interesting discussion concerned the makeup of the different oil and gas investors. Oil is attracting public companies, while private equities are leaning more towards natural gas opportunities. Will the attraction of public companies to oil create noncore assets that will be ripe for a divesture? Several of the people I spoke to feel that this will occur in the next 12 months.

In another session, it was interesting to hear how Pennsylvania is regarded as a friendly state to invest in oil and gas properties. Living in Pennsylvania, I frequently hear people criticize Pennsylvania as unfriendly for corporate taxes and business. However, the speaker went as far as to say that even if Pennsylvania imposes a severance tax, well fee or some other tax, the proposed impact will be less than $.10 a mcf.

Below is a slide that I thought summarized how far this industry has changed in the past 10 years:

© 2011 Schneider Downs. All rights-reserved. All content on this site is property of Schneider Downs unless otherwise noted and should not be used without written permission.

This advice is not intended or written to be used for, and it cannot be used for, the purpose of avoiding any federal tax penalties that may be imposed, or for promoting, marketing or recommending to another person, any tax related matter.

You’ve heard our thoughts… We’d like to hear yours

The Schneider Downs Our Thoughts On blog exists to create a dialogue on issues that are important to organizations and individuals. While we enjoy sharing our ideas and insights, we’re especially interested in what you may have to say. If you have a question or a comment about this article – or any article from the Our Thoughts On blog – we hope you’ll share it with us. After all, a dialogue is an exchange of ideas, and we’d like to hear from you. Email us at

Material discussed is meant for informational purposes only, and it is not to be construed as investment, tax, or legal advice. Please note that individual situations can vary. Therefore, this information should be relied upon when coordinated with individual professional advice.

© 2019 Schneider Downs. All rights-reserved. All content on this site is property of Schneider Downs unless otherwise noted and should not be used without written permission.

our thoughts on

Is Your Royalty Check Correct?
PUC Distributes Almost $252M in Impact Fees
Continued Compliance with CAISO SQMD Requirements in Non-Reporting Years
Rock You Like a Hurricane (..Maybe)
President Trump Signs Two Executive Orders to Enhance Pipeline Production
Pennsylvania's New Natural Gas Severance Tax Proposal

Register to receive our weekly newsletter with our most recent columns and insights.

Have a question? Ask us!

We’d love to hear from you. Drop us a note, and we’ll respond to you as quickly as possible.

Ask us

contact us

Map of Pittsburgh Office

One PPG Place, Suite 1700
Pittsburgh, PA 15222
p:412.261.3644     f:412.261.4876

Map of Columbus Office

65 East State Street, Suite 2000
Columbus, OH 43215
p:614.621.4060     f:614.621.4062

Map of Washington Office
Washington, D.C.

1660 International Drive, Suite 600
McLean, VA 22102