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"US Shale regains strength amid OPEC cuts" Against the backdrop of OPEC’s 1H 2017 production cuts, which the organization announced in November 2016, US liquids production has started to rebound. Rystad Energy estimates that total US oil and condensate production has increased from 8.9 to 9.3 million bbl/d between November 2016 and May 2017. This represents an increase of 400 kbbl/d over the last six month, the lion’s share of which stems from higher shale activity. Prior to the OPEC deal, US oil production had declined by almost 700 kbbl/d from a 2015 peak of 9.6 million bbl/d. Read more
"Australia E&P: production growth despite market downturn" by Veronika Akulinitseva & Olga Kerimova, Analysts (Published by PESGB Newsletter, May Edition) LNG has dramatically changed Australia’s energy landscape, with major projects shipping first cargoes in the past two years and others on track to come online. This article assesses the outlook for the Australian E&P industry, illustrated by three key drivers: production, resource potential and spending. Rystad Energy estimates that its contribution will continue to grow from only 25% in 2010 to around 55% in 2017, to over 65% by 2025. North West Shelf LNG, with first production in 1989, makes up about 20% of the current volumes. The decline in production from mature fields is expected to be offset by the commencement of production from the APLNG and GLNG projects. Read More
"Asia Pacific update: Resurgence of offshore exploration in Asia Pacific is dependent on more acreage" by Nils-Henrik Bjustrøm, Product Portfolio Manager & David Mullins, SVP BD Asia Pacific (Published by GeoExpro, Vol 14, No. 2) Since the peak year of 2011, offshore exploration activity, measured as the number of exploration wells drilled, in the Asia-Pacific region has dropped by more than 40%. This is very much in line with the global trend. In Australia, the number of exploration wellbores has dropped from around 90 in 2008 and 60 in 2011 down to 12 offshore exploration wellbores completed last year. The same trend has been observed in India where the number of wells drilled has dropped from a level of 60 wells per year down to 32 in 2016. In comparison, offshore exploratory drilling activity in China has increased by 10-20%, and CNOOC has reported plans to drill 126 exploration wells in 2017 compared to 115 in 2016. Read More
"Montney operators target condensate-rich windows as oil sands diluent demand grows" Despite persistently depressed oil prices, high-cost bitumen production from Alberta’s oil sands regions is slated to grow from current levels of approximately 2.2 million bbl/d to over 2.8 million bbl/d by 2020, due largely to major project sanctioning prior to the 2014 price collapse. Since many oil sands operators blend bitumen with lighter “diluents” to meet pipeline specifications for viscosity and density, supply growth from the oil sands will continue to push up western Canadian demand for low-density hydrocarbons. This will particularly affect field condensate and pentanes plus recovered from natural gas processing. Read more
"Shale vs. Offshore: Gulf of Mexico is equally important as the permian basin for US oil production" by Artem Abramov, VP Analysis (Published by Oil & Gas Financial Journal, April Edition) Today, Wood Group announced the acquisition of Amec Foster Wheeler. This merger will create a clear market leader within the engineering and MMO-market, with a market share twice as large as its competitors. With a combined workforce of 64,000, it will rank as one of the top 15 oilfield service companies in the world. Wood Group has had a larger footprint into the upstream oil and gas business than AMECFW, which traditionally have been more exposed to non-upstream markets such as civil work and mining business. Combined they reached $14.2 billion of revenues in 2015, of which about 40% is related to upstream services and the majority of that is associated with engineering and MMO. Read More
"The falling of Mt Trinidad?" by Kjetil Solbraekke, Head of Rio Office Trinidad has a long-standing oil industry that has influenced the country’s industrial development and culture for over a century. Even the country’s music is heavily influenced through the steelpan developed through Trinidad’s creative population and access to empty steel oil barrels. Steelpan music is still alive and very popular, while the oil and gas industry is struggling more to keep up production of both oil and natural gas. Read more
"As oilfield service layoffs hits 35%, hiring poised to restart" The North American shale industry in particular, took a hard hit with the lower activity levels. Two of the largest land drillers, Nabors Industries and Helmerich & Payne, have announced several staff reductions resulting in an overall reduction above 50%. The Big Four, all exposed to the US land market, were forced to lay off between 30-40% of their workforce. Companies exposed to more of the international market have cut more modestly, in the range of 20-30%. Read More
Join Rystad Energy at booth #4151 in the Norwegian Pavilion at OTC in Houston, May 1-4. Meet with our experts for product demonstrations or contact us for one-on-one meetings. For more information, click here.
RYSTAD ENERGY OTC INFORMATION SESSION
Rystad Energy will be holding a lunchtime meeting of presentations and discussions on the latest industry developments during OTC 2017. Please join Lars Eirik Nicolaisen, Partner; Andrew Conacher, Head of Houston Office; Tore Guldbrandsøy, Head of Stavanger Office; Amir Zaman & Schreiner Parker, Business Development Managers; Maierdan Halifu, Liz Tysall & Courtney Sims, Senior Analysts; and David White, Marketing Manager, for industry insight and networking.
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