• Oil and gas producers are diversifying their funding sources.
• Energy asset securitization is a new type of funding that is quickly gaining in popularity.
• Oil and gas securitization offerings could be beneficial to both investors and producers, Daniel Allison, energy finance partner with law firm Sidley Austin LLP, said.

As banks have pulled back from funding oil and gas operations and other traditional sources of financing such as equity investment or reserve-based lending (RBL) facilities are drying up, private U.S. oil and gas producers are looking at a booming market for alternative funding.