Are Banks Being Replaced by Intra-Industry Financing in the Oil and Gas Production Industry?
Passante, Jennifer, The Journal of Bank Cost & Management Accounting
Is the Bank's position in financing oil and gas producers being replaced by marketing affiliates within the industry? More and more oil and gas producers are turning to unconventional funding sources that include pre-paid swaps, strategic alliances, development financing and production payments to finance their exploration and production of additional reserves. This development was prompted when the producers began to view the quality of traditional financing declining in 1993(1). As a result, production payments have recently taken a lead in the producer's sources of capital. A production payment is where a buyer makes an up-front cash payment for titles to reserves to be produced for …
Questia, a part of Gale, Cengage Learning. www.questia.com
Publication information: Article title: Are Banks Being Replaced by Intra-Industry Financing in the Oil and Gas Production Industry?. Contributors: Passante, Jennifer - Author. Journal title: The Journal of Bank Cost & Management Accounting. Volume: 8. Issue: 3 Publication date: January 1, 1995. Page number: 62. © Not available. Provided by ProQuest LLC. All Rights Reserved.