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"EQT's acquisition of rice energy creates the leading US and Appalachian natural gas producer" On June 19, EQT Corporation (NYSE:EQT) entered into an agreement to acquire Rice Energy (NYSE:RICE) for 8.2 billion USD. In summary, EQT financing includes 5.4 billion USD in equity, 1.3 billion USD in cash and 1.5 billion USD assuming or refinancing of Rice net debt and preferred equity. According to Rystad Energy data, the deal creates the leading US and Appalachian natural gas producer with the estimated 2017 FY combined production of 3.17 BCF/d (Figure 1). After the merger, EQT will own 670 thousand core net Marcellus acres, 149 thousand core net Upper Devonian and 681 thousand core net Utica acres. The aggregation of acreage positions in Marcellus PA will allow for longer laterals and reduce per unit operational costs. Read More
"Rystad Energy Annual Review Of Global Recoverable Oil Resources: Saudi Arabia Adds Oil Resources Ahead Of Ipo" In its annual account of global oil resources, Rystad Energy finds that Saudi Arabia has added enough recoverable oil resources to regain its top position ahead of the United States and Russia. The addition of 73 billion barrels of recoverable oil since the publication of Rystad Energy’s 2016 annual review comes as a result of lower tax rates for Saudi Aramco. The revised fiscal regime should incentivize more aggressive exploration and development drilling in the country, according to the oil and gas knowledge house. Read More
"Impact Of Downturn On Shale Development: Permian Success Story" by Artem Abramov, VP of Analysis (Published by Oil & Gas Financial Journal, May Edition) In the beginning of the recent downturn (2H 2014 – 1H 2015), a general consensus in the market had been calling for a rapid collapse of the US Shale oil industry. Contrary to this belief, the industry was able to survive throughout the downturn. Indeed, total shale oil production declined by apr. 700 thousand barrels per day from March 2015 to September 2016. Nevertheless, given numerous efficiency and productivity gains accompanied by lower service prices, the most dedicated shale operators have been able to complete a successful transition into low-cost source of supply with sustainable activity in a sub-60 USD/bbl oil price environment. Read More
"Electrifying The Barents Sea" by Marius Kluge Foss & Gina Nygard (Published by Oilfield Technology Magazine, May Edition) Of the three main provinces on the NCS, the North Sea has historically been the dominant one. Driven by the giant Johan Sverdrup field with startup scheduled for late 2019, production levels are expected to remain rather flat towards mid-2020s, before the final decline phase. Similarly, the startup of Aasta Hansteen in the Norwegian Sea is expected to increase the province’s output in the short term, while the province is set to decline long term. Read more
"More Delayed Projects Sanctioned H1 2017 Than The Entirety Of 2016" Rystad Energy is tracking FID delays since the second half of 2014 to post-appraisal pre-sanctioned upstream projects. We find 17 of these delayed projects have since been launched, accounting for an estimated 78 BUSD of development spending. Tengizchevroil’s 2016 Tengiz FGP/WPMP expansion in Kazakhstan accounts for about 40% of this spend. Read More
In addition to the NCS Solution, Rystad Energy has launched a similar product for the UKCS. United Kingdom Continental Shelf Solution (UKCSSolution) provides up-to-date information on licenses and field activities on the United Kingdom Continental Shelf. It reviews key activities, transactions, work programs, and drilling plans on the UKCS on a monthly basis. The data and analysis are delivered through UCube UK, PDF report and GIS map.
UKCSSolution also can be combined with NCSSolution into Northwest Europe (NWE) Solution to access an integrated and detailed overview of all upstream activities in UK, Norway and Denmark.