We are seeing signs that are encouraging to our industry, and the industry will come out of the downturn even leaner and stronger, Hein & Associates Managing Partner Jim Brendel told Angie Austin at EnerCom’s The Oil & Gas Conference 21.

Brendel conveyed optimism in regard to the current market environment, “The companies with strong balance sheets, we are starting to see some opportunistic investments, and that’s an encouraging sign for us in this industry.”

“It’s good to see that rig counts are coming back up again, some of the recent comments from the Saudi’s about supporting the market are encouraging, so we hope [prices] are stabilizing. Just like any other downturn, we are confident the industry will come out of this one leaner and stronger.”

Discussing recent oil and gas ballot initiatives in Colorado, Brendel said, “Initiative 78 would increase the setback for oil and gas development activities, and some estimates have said that that would decrease the amount of surface area available for drilling by 90%.”

“In 2014, the industry produced over a billion dollars in public funding to the state. And there’s no question that an initiative like this would severely impact this. New production has a disproportionately large effect on tax revenues, so it would have a big impact. A university of Colorado study said that this initiative would decrease the state’s GDP by 4% over the next 10 years.”

For more of Jim Brendel’s unique perspective on the oil and gas industry, watch the video below.

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