"Reserve-Based Lending - A Lesson from History"

Infrastructure Journal - March 4, 2009

In an environment where the price of oil has plummeted by more than two-thirds from its $150 high and the debt markets continue to shrink, SULLIVAN & CROMWELL LLP Partner Stewart Robertson observed that "the [oil and gas exploration and production] industry is undoubtedly moving back to basics. People will be re-evaluating what they did a few years ago. With the benefit of hindsight, the approach pre-credit crunch was perhaps too aggressive." In addition, he cautioned that "[t]he real question, of course, is will the pendulum swing too far the other way."