It’s taken more than a year for banks to start lending money again to energy companies since the BP oil spill, but it won’t be BP or Shell taking the hit from more stringent lending requirements that spawned from the major macondo well blowout.
According to a report from The Times-Picayune, the financing of energy exploration since the spill has shifted to favor larger oil companies, the big players, while smaller energy companies are having a harder time getting loans and are now considered a riskier financial venture.
That trend could mean a major shift in the industry, the T-P reports, leaving smaller operators more vulnerable to having to sell. And these factors are only heightened by the consolidation fever in the banking industry, which means fewer banks for smaller oil companies to turn to:
Bryan Chapman, executive vice president and energy lending manager at IberiaBank, said while banks are back in energy lending, small companies will have a hard time. “Banks are definitely being more selective. It puts a bias against some of the smaller companies,” Chapman said. “It’s really putting the smaller players at a distinct competitive disadvantage.”
Bret West, executive vice president of the energy service and equipment group at Wells Fargo, said that big companies like Shell and Anadarko will be less willing to partner with smaller companies for deepwater energy exploration in the future, because it’s riskier business after the Macondo well disaster.
“They’re looking for companies that have good training, good track records, good equipment, and good balance sheets. All of that to me means that the big get bigger,” West said. “When you look into the deepwater, it’s not for the faint of heart. I think that the small independents can’t survive in the deepwater.”
Read more here.
C & C Technologies, HIT Fitness, R3 Sciences, the Acadiana Symphony Association and the United Way of Acadiana recognized for innovation.
Under the deal, Teche shareholders would get 1.162 shares of IberiaBank for each share of Teche stock.
Dave Perkins, LCG Comp Plan honored along with local architects and designers at the 2014 INDesign Awards
Greg Manuel’s Lafayette-based residential development company is taking advantage of exponential industrial growth in Lake Charles.
Longtime Lafayette retailer ventures online.
The annual juried competition recognizes excellence in architecture, interior design and historic preservation in Lafayette and the five surrounding parishes.
It’s not how aggressive or conservative you are — it’s planning for risk that matters most.
Cypress Bayou GM hosts open house.
Thanks to cutting-edge digital technology, more and more consumers are banking on ATMs and mobile phones.
Regional bank bids farewell to Downtown May 30
ABiz takes a look back at the most noteworthy moments for the local banking industry over the last year.
Most experts say short-term interest rates will be unchanged through 2014, but long-term rates are inching up.
New hires, promotions, transfers in Acadiana business
The scion of a landmark Four Corners restaurant climbs back into Lafayette’s culinary scene as franchisee for a popular burger chain.
Largest recruitment event in Acadiana returns May 21 to the Cajundome Convention Center
A lawyer’s ad should only be a starting point, as there is much more to consider when seeking quality representation.
Thanks to the inaugural 2012 INNOV8, a design for lifting heavy objects was brought to market.
His company bankrupt and being liquidated, the Lafayette businessman’s financial troubles are mounting.
Georgia-based fried chicken chain would go up against Raising Cane’s, Chick-fil-A and others (like the Popeyes near its proposed location).
A Scott businessman has pleaded guilty to failing to report a conspiracy to award Opelousas Housing Authority construction bids to his company.
Court-appointed examiner says Lafayette businessman was “effectively on both sides” of transactions, opens door for legal action against him.
Lafayette-based insurance broker/risk management group bought by Florida firm for undisclosed sum; principals Landry and Harris continue to run local operations.
The House labor committee rejected bills Thursday that would have set the state minimum wage higher than the hourly federal rate of $7.25 and would have allowed local governments to set their own minimum wage.
Of the major oil- and gas-producing states, Louisiana gained nine rigs, Texas increased by seven, California gained three and New Mexico increased by one.
The Louisiana Workforce Commission said Friday that initial claims rose to 2,101 from the previous week's total of 1,985. There were 2,444 initial claims during the comparable week in 2013.