The law firm conducts spring and fall editions of the survey each year to capture the expectations of energy banks for natural gas and oil prices, aka their price decks. The price decks are a principal factor used by the banks in determining oil and gas producers’ borrowing bases, such as the amount of credit a lender is willing to extend to a producer, said Haynes Boone.
For West Texas Intermediate oil prices, banks have increased their near-term expectations by almost 20% versus the spring survey, Haynes Boone said.