AMARILLO, Texas (KVII) — The 96th annual Panhandle Producers Royalty Owners’ Association (PPROA) convention is taking place at the Embassy Suites Hotel in downtown Amarillo.
This affords men and women who work in the Oil & Gas Industry to come together and talk about overcoming challenges in today’s economic climate and in the future.
“The industry has been through a lot,” said Marshall Adkins, head of energy investment banking for Raymond James. “Fortunately, we’ve all worked on debt, and balance sheets look pretty good, but $60 oil is challenging.”
“The industry up here is primarily mom and pop and the mom-and-pop operations may be down all the way to 10 to 15 people,” said Richard Beyea, independent oil & gas operator and chairman of the PPROA Board. “Anything that is added to the cost structure, as far as regulations, as far as declines and prices, those things have to come out of the bottom line and most of these are family operations.”
One of the featured speakers, J. Marshall Adkins with Raymond James Financial Services, talked about the importance of the oil & gas industry embracing AI going forward.
“AI is extremely bullish for US natural gas prices because there is a direct correlation between the availability of AI and the availability of gas-fired power,” said Adkins.
“With AI coming in and the power requirements there, it is going to massively drive the need for electricity development, that is going to affect the demand for natural gas,” said Beyea. “Natural gas is going to power most of the transition until we get to nuclear, but the nuclear we’re operating on Jane Fonda economics, so that unfortunately has pushed nuclear down the road a little bit.”
The 96th annual convention will conclude with a golf outing at Ross Rogers Golf Course with a tee time of 9 a.m. on Friday.