Energy CFOs Expect to Feel Impact of Recession at Least Six More MonthsLocation: Chicago According to a new study by BDO Seidman, LLP, one of the nation’s leading accounting and consulting organizations, 40 percent of chief financial officers (CFOs) at oil and gas exploration and production companies don’t expect access to credit to improve until the second half of 2010. An additional 31 percent believe conditions won’t improve until between 2011 and 2012. There is similar sentiment about when the recession will end, with regard to its negative impact on oil and gas demand – 31 percent say the second half of 2010 and 33 percent say between 2011 and 2012. Most respondents believe it will take longer for their capital spending budget to get back to 2007 levels. Sixty-four percent believe it won’t happen until 2011 or beyond; only twenty-two percent believe it will bounce back by the second half of 2010. “It’s still a tough environment for the energy industry right now, but concerns about the availability of financing are easing. Many companies report that their banking relationships remain very strong, which could help them bounce back more quickly,” said Charles Dewhurst, a partner and National Energy Industry Practice Leader at BDO Seidman, LLP. “Looking ahead to 2010, there are a number of legislative issues on the table that have CFOs worried – in particular, proposals to eliminate certain tax incentives for oil and gas producers.” These findings are from the BDO Seidman 2010 Energy Outlook Survey,which examined the opinions of 100 chief financial officers at U.S. oil and gas exploration and production companies. The survey was conducted in November of 2009. Some of the major findings of the BDO Seidman 2010 Energy Outlook Survey include:
To subscribe or visit go to: http://www.riskcenter.com |