06/14/2013 – Paragon Financial Group Sees Parallel Growth in the Oil and Gas Industry with the Factoring Industry
FOR IMMEDIATE RELEASE
Ft. Lauderdale, FL, 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 world’s 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 Deloitte’s 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.”
ABOUT PARAGON FINANCIAL GROUP
For 20 years, Paragon Financial Group has provided working capital solutions for growing companies throughout the U.S. They serve small to large-size companies across a wide variety of industries through accounts receivable, invoice factoring, and purchase order financing up to $3 million per month in volume. Paragon is a leading source for receivables financing, government contract financing, payroll funding, and purchase order financing. For more information, visit https://www.paragonfinancial.net.