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"Nearly 230 BUSD earmarked for pre-development projects deferred since H2 2014, delaying over 3 MMboe/d of supply" A comment by Readul Islam (Tipu), Senior Analyst Schedule slippage is an ever-present reality for E&P projects, especially for the more complex mega-projects. In addition to subsurface challenges, above-ground issues, such as government red tape or delays in reaching binding sales agreements, can derail planned sanction schedules. Read more
"The current fracklog will not save US shale production at a 30 USD/bbl WTI" by Artem Abramov, Senior Analyst As we move into 2016, official well data from US governmental sources provides sufficient fact-based visibility on drilling and completion trends in 2015. These figures confirm that some operators delayed the completion of a significant number of wells, in an attempt to reduce spending and to build inventory which is easily available once commodity prices recover. Several operators were in addition not interested in increasing their output during low commodity prices. Read more
"Oil market starts to balance as demand growth set to outpace supply" by Olga Kerimova, Senior Analyst, and Theodora Batoudaki, Analyst (Published by PESGB Newsletter, January & February Edition) 2015 was a year marked by stronger demand growth, lower supply additions, especially from shale/tight oil, and E&P companies adjusting capital budgets to the declining oil prices, leading to lower investments this year and into 2016. This article explains the key industry topics from this year, highlighting short-term supply and demand growth, exploration success and spending trends. Read more
"Examining the Commerciality of Recompletion" by Per Magnus Nysveen, Senior Partner & Head of Analysis, and Leslie Wei, Senior Analyst (Published by Oil & Gas Financial Journal, January Edition) Refracturing of shale wells is a popular topic since operators can apply the latest technology to older wells, thereby increasing production without incurring all the costs of a new well. Well results indicate that the resources per well have doubled since 2012 for the main plays (ref. December 2015 article), making refracturing of shale wells a logical development. Operators are optimistically discussing the possibility of refracked wells in several different plays, but how have the results compared to expectations so far? Read more
"Can cost compression bring subsea projects “in the money” at current oil price?" by Jon Fredrik Müller, Senior Project Manager, and Audun M. Martinsen, VP Analysis (Published by OE Digital, January) With high development activity and cost inflation in the industry since 2010, the breakeven prices for subsea developments have increased significantly. With cost levels as in 2014, many of the discoveries not yet sanctioned would be unprofitable at the current oil price regime. So how are the costs reacting to this downturn and how do we believe the subsea market will develop going forward? Read more
"Further pressure on the rig market after seeing the highest demand decline in over 15 years" by Joachim Bjørni, Analyst The mobile offshore drilling industry can look back at 2015 as one of the most challenging years the industry has seen over the past 15 years. The total global market dropped as much as 12% compared to 2014 levels. The floater market experienced the highest percentage drop with a 14% decrease in contracted rig supply in 2015, going from 262 units in 2014 to 227 units in 2015. Brazil, West Africa and Norway were the main driving regions for this decline. The contracted jackup supply dropped by 11% in 2015 ending at 363 contracted rig years. South East Asia and US GoM were the main regions heading up this decline. Read more
Rystad Energy announced this week the nominees for Gullkronen 2016, to be held on Wednesday, 03 February 2016 at Wallmans Oslo. Gullkronen is dedicated to acknowledge high performances and achievements made by companies involved in the Norwegian oil and gas business during the previous year.
Explorer of the Year Lundin Norway, The Norwegian Government, Statoil
Business Developer of the Year CapeOmega, DEA Norge, Det norske oljeselskap, Repsol Norge
Project Developer of the Year Det norske oljeselskap (Ivar Aasen), Lundin Norway (Edvard Grieg), Statoil (Subsea Gas Compression Projects), Wintershall (Maria)
Field Operator of the Year Det norske oljeselskap (Alvheim), Statoil (Grane), Statoil (Oseberg), Wintershall (Brage)
Oil Service Awards
New Venture of the Year Calora Subsea, Fishbones, Petrostreamz, Restrack
Globetrotter of the Year ClampOn, Petroleum Technology Company, RESMAN, TCO
Business Success of the Year Agility Subsea Fabrication, Aibel, Kværner, SAR
The final honoree of the night will be announced at the event.