Panelists say plenty of capital wants into oil business

The plentiful supply of capital seeking to enter the oil and gas industry was frequently mentioned at this week’s Executive Oil Conference.

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“Where is this capital going, and is there too much?” ” Dick Covington, managing director, NGP Energy Capital Management, said, then citing a number of statistics, particularly in the natural gas markets, before answering the question. Among those statistics; A production decline rate that has grown to 30 percent as over 20,000 small producers producing natural gas are drilling wells that decline faster, wells that are deeper and more expensive to produce. So, he said, there may be more capital, but a lot of capital is needed.

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