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2020 dings Texas oil and gas industry, but indicators hint at rebound

From our vantage here in Texas, we often look to the oil and gas industry for insight into the health of the greater economy.  Oil and gas is a driving force here and the sector materially influences not just our state, but also countries and economies around the globe.

To support the industry, Stephenson Fournier’s deep legal team routinely advises diverse and valued clients. Our attorneys diligently represent oil and gas principals ranging from company management, equity investors and lenders to lessors/lessees, midstream participants and more.

Moreover, we do so across virtually every conceivable type of transaction. Here are just a few representative examples:

  • Developmental/exploration projects
  • Joint venture transactions
  • Due diligence relevant to environmental concerns, regulatory compliance and more
  • Purchase/sale agreements
  • Lease negotiations and drafting
  • Farmouts and joint participation agreements
  • Formation/entity transactions (e.g., corporations partnerships and limited liability companies)
  • Financing/loan agreements, equity structures
  • Private offerings

A recent in-depth research article on the state of the Texas’ oil and gas industry spotlights a number of key data points. Here’s one: Like virtually all other commercial sectors, oil and gas has been adversely affected by the unprecedented global health scourge that marked 2020.

There’s a corollary to that too, though, which arguably comprises the fundamental takeaway from the analysis. It is this: Notwithstanding the obvious economic adversity produced by the pandemic, empirical evidence spotlights continuing sector improvement in recent months. The Texas Railroad Commission which regulates the industry points to a “bounce back” and renewed traction that is now yielding consistently measurable upsides.

By year end 2020, noted one prominent industry association, the state’s oil and gas sector was expected to support at least 300,000 direct jobs and 2.1 million indirect jobs in Texas.”

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