Paragon Financial Group Sees Parallel Growth in the Oil and Gas Industry with the Factoring Industry


Ft. Lauderdale, FL (PRWEB) June 14, 2013

Paragon Financial Group (Paragon) is seeing increased interest in factoring services such as invoice factoring for the oil and gas industry. This is because the US oil and gas industry is experiencing a dramatic surge in production thanks to new technologies that enable the industry to produce more output at lower cost. According to a report by Ernst & Young, the US will remain the largest source of new oil growth worldwide in the coming years, aided by the shale boom. Indeed, the US may be on its way to becoming the worlds largest oil producer, the title now held by Saudi Arabia. Crude production in the U.S. jumped 14% last year to 8.9 million barrels a day, according to the newly released Statistical Review of World Energy, an annual compilation of industry trends published by BP.

Natural gas is also experiencing tremendous growth thanks to the technologies that make available large amounts of shale gas. According to the Wall Street Journal most of this new production is coming from dense shale-rock formations, such as the Bakken Shale in North Dakota and the Eagle Ford Shale in Texas. In recent years, the oil industry has developed techniques to hydraulically fracture, or frack, these shales, freeing up previously trapped oils.

While the current global energy supply/demand balance is uncertain and prices have weakened due to political tensions, sluggish economies in Europe and elsewhere, and a slowly-recovering US economy, the longer-term outlook for the US oil and gas industry is extremely bright. If there ever was a time that the oil and gas industry needs to be prepared for growth, it is now. Not only are there indications of a continued gradual recovery in the US economy, but in the medium to longer term, Asia appears to have great potential for oil and gas demand growth. To help meet that longer-term demand, US oil and gas producers will need to continue to expand their output, and that means the industry needs to invest now.

In addition to supplying the domestic market, the US industry is looking to exports as opportunities for further growth in the longer term. An increasing solution to burgeoning domestic production of both natural gas and crude oil as well as lagging domestic natural gas and petroleum products demand is to export, stated to John England, of Deloittes Oil & Gas Industry Practice, in his 2013 industry outlook.

President of Paragon Financial, Michael Rossi states, The development and discovery of new oil and gas reserves within the United States is helping to spurn growth in both local and national markets. Jobs in the oil field tend to pay double the median wage in areas where they are common. Thousands of new jobs are created in order to excavate these natural resources. This now leads to even more jobs as pipelines to transport the oil are constructed, refineries are built for oil to fuel processing, and tankers are added to transport the finished product. These larger oil and gas companies hire smaller companies to help them complete every phase of the process. It’s these smaller to medium size businesses that will need proper invoice factoring in place to supplement that growth and ease the cash flow difficulties that can be associated with that growth. The level of growth in the oil and gas industry is creating a similar ripple of growth in the Factoring industry and other niche financing sectors.

Tags: , , , , , , ,

Comments are closed.

Spanish Crisis Triggers Real Estate Price Collapse

Baltimore, MD (PRWEB) June 29, 2012 A move by Spanish banks to offload the build-up of foreclosed properties on their [...]

Self Storage Provider Coronado Mobile Storage Joins Forces with LAD Solutions in Promoting Storage Containers as Mobile Offices

San Diego, CA (PRWEB) July 03, 2012 With the collapse in real estate prices and explosive growth in home foreclosures [...]

Real Estate Prices LOFTS DOWNTOWN LOS ANGELES FOR SALE AND LEASE RENTALS

Real Estate Prices LOFTS DOWNTOWN LOS ANGELES FOR SALE AND LEASE RENTALS. LA loft prices and market report Corey Chambers, [...]

Mortgage Rates Drop to New Record Lows Influencing Increase In Refinancing and Home Building Activity According to BurlingtonMortgage.biz

Wilmington, NC (PRWEB) July 24, 2012 Mortgage rates have reached a new historical low point for 30 year fixed, 15 [...]

NFIB Stated Confidence in Small Business Takes a Steep Drop XSM Services aimed to Restore Faith

Denver, Colorado (PRWEB) January 30, 2013 After the recession took its toll on the U.S. economy, the fiscal cliff and [...]

Junior State of America Releases Winter 2013 Edition of Student-Run Magazine, The Junior Statement

Washington, DC (PRWEB) January 31, 2013 The Junior State of America (JSA) today released the Winter 2013 Edition of The [...]