TOPICS OF INTEREST
Looking for Innovation: Oilfield Services Remain a Challenge
The capital intensity of energy operations provides a challenge for early-stage companies looking to stand out. What makes companies innovative, and where are the areas where venture capital is seeing the most innovation?
Firms Lay Transformation Blueprints for Post-Downturn E&P World
Two old school operators and a financial change agent embody a new era for the US onshore industry. Their CEOs convened at the NAPE Global Business Conference in Houston to explain why.
Majors to Feature Heavily in Global Upstream M&A Activity in 2018
With portfolios that in some cases look dramatically different from a few years ago, the majors now have the ability to think about long-term upstream growth through deal making.
Schlumberger Exits Seismic Acquisition Business
Schlumberger has decided to quit the seismic acquisition business due to poor financial returns.
Total Ups Its US Gulf of Mexico Game Through Buy-In to Anchor Discovery
Total just strengthened its presence in United States deepwater plays through an acquisition from Samson that gives the French company a 12.5% interest in blocks covering the Anchor discovery, one of the most significant recent finds in the Gulf of Mexico.
Norway’s Record Offshore License Award Attracts Major Operators
The company’s 31 licenses highlight a record-high total awarded during the latest APA round, which is aimed at developing mature areas of the NCS.
Petrobras, Total Complete Major Presalt Deals
Petrobras and Total have executed two major transactions involving deepwater, presalt development assets offshore Brazil, with Total becoming the first major international company to operate a Brazil presalt field.
Increased Spending, Project Sanctions to Fuel Global Upstream Resurgence in 2018
With their newly refined portfolios, operators are looking toward growth in the coming years but will remain cautious given ever-changing industry economics.
Building Type Wells for Appraisal of Unconventional Resource Plays
The objective of the complete paper is to present an integrated work flow that can be used to build P90, mean, and P10 type wells, which represent the range of potential outcomes for the geologic subset in an unconventional resource play.
Integrating Technology and Organizational Alignment for a Portfolio Implementation
One E&P company has found that implementing and sustaining a portfolio process require technical solutions and application of best practices for three critical elements: production forecasting, project modeling and economic evaluation, and portfolio management and decision making.
A More-Holistic Approach to Oilfield Technology Development
a holistic view of technology maturation that addresses both technical and nontechnical risks. The definition of success is expanded to include the establishment of successful, commercially viable, and sustainable solutions that meet end-user needs and requirements.
The papers highlighted in this article cover technical assessment of unconventional resource plays, portfolio optimization, and technology development, all very relevant in today’s environment.
Linn Energy Selling Spree Tops $1 Billion With Sale of Bakken Assets
Linn Energy recently sold its Williston Basin properties for $285 million. This deal brings Linn’s year-to-date total sales agreements to more than $1.5 billion as it financially restructures after bankruptcy.
Jones Energy CEO Tells of Company’s Transformation
At the recent Leaders in Industry luncheon in Houston, Jonny Jones told the interesting story of how Jones Energy grew from a small private entity to a company whose shares trade on the New York Stock Exchange.
Angola: Does Recent Change Mean Economic Development?
Angola’s powerful oil and gas industry has enabled the country’s rapid growth, but an overreliance on those revenues has posed major challenges. Does a recent change of leadership mean a shift in the nation’s economic direction?
BP and Shell Agree: A New Energy Future Is Coming
The world still needs oil and gas, but it is also making room for renewable energy which will change how upstream companies do business.
New Study Shows Stanching of Decline in Oil Reserves, Revenue
Despite a decline in oil and gas production and a decrease in revenue from 2015, an Ernst & Young’s study had a cautiously optimistic outlook as the industry adjusts to what it called “the new normal” of a lower, but stable, oil price.
BHP Billiton Plans To Divest US Onshore Assets
BHP Billiton plans to divest its US onshore assets. The company will continue to complete well trials, acreage swaps, and look into midstream solutions to increase the value, profitability, and marketability of the assets.
Petrofac Sells Stake in Pánuco Contract to Schlumberger
Petrofac sold its 50% interest in Petro-SPM Integrated Services to Schlumberger. Petro-SPM operates the Pánuco Integrated Service Contract in Mexico. Schlumberger now owns 100% of Petro-SPM.
Total Acquires Maersk Oil in $7.5-Billion Deal, Boosts North Sea Presence
Total’s acquisition of Maersk Oil includes holdings in the North Sea Johan Sverdrup and Culzean projects. Total will become the second-largest operator in the northwest Europe offshore region. Maersk’s strategy shifts to its transport and logistics division.
Bidding Interest Drops for Gulf of Mexico Leases
Industry interest in US Gulf of Mexico acreage declined in the number of bids and the dollars offered at the latest federal lease sale, compared with the prior sale. But there was still some confidence shown in higher risk prospects.
Shell Expands Investments in Solar Energy
Shell invested in a Singapore solar company and signed an agreement to purchase a Texas company with solar and other renewable assets. Along with its minority stake in a company that uses solar to generate steam for EOR in the Middle East, Shell catches some rays in the Asia Pacific, US, and Oman.
US Sanctions Hit New Russia Projects, Add Uncertainty
The new US sanctions against Russia will place added restrictions on international companies taking part in oil development projects with Russian companies and raise doubts about Russia’s plans to expand pipeline exports.
Bringing Light to Africa
Many new developments in African exploration and production hold tremendous potential to bring more energy and prosperity to the continent—and shine a light of affordable, abundant energy.
ADNOC Case Studies Illustrate Importance of Technology Qualification Process
ADNOC’s authority on technology maturity describes the case studies used to test the company’s new technology qualification process.
Solar EOR Firm Looks To Heat Up the Competition
In thermal enhanced oil recovery there is one big ingredient: steam. A new startup from Germany believes it has found the oil industry’s cheapest way to make it.
M&A Deals Moving Well Ahead of Last Year’s Pace
Peter Hays, a partner in mergers and acquisitions (M&A) at law firm King & Spalding, says that stabilization in the oil market has helped the industry M&A business to recover.
Induced Earthquakes in Oklahoma Dropping, But Not off the Radar
Top US seismic experts say they are keeping a watchful eye on ground shaking in the state as new concerns are raised in neighboring Texas.
Unconventional Resources: Three Alternative Paths To Maximizing Unconventional Resources
As well-developed shale plays and tight formations mature and decline in production, nontraditional strategies for maximizing production and discovering new resources must be considered.
New European Independent Producer: Centrica and Bayerngas Norge Form JV
The newly formed independent producer will operate assets in UK, the Netherlands, Norway, and Denmark.
Permian-Focused Independent Looking for Deals
Avoiding debt problems and maintaining high-quality operations have kept Frank Lodzinski’s companies going through thick and thin.
Assessing the Long-Term Energy Landscape Using a Global Energy Market Model
A global energy model estimates the long-term energy mix, including solids, liquids, and gases, that will satisfy energy demand to the year 2040.
The Price is Finally Right for Indian Gas Megaproject
Reliance Industries and BP are going forward with the expansion of a huge field off the east coast of India that is expected to fill 10% of the country’s energy needs.
OPEC Extends Production Cuts 9 Months, Impacts Analyzed
OPEC has renewed its effort to prop up global crude prices, but the impact may also drive US production higher.
Data and Digital Hold E&P’s Future, Says New Century CEO
Leveraging data to drive the best technology solutions and inform business strategy is the route to future industry success, says a US independent’s top executive.
For Pemex, Partnerships and Profitability Are The New Focus
The new CEO of Pemex outlined his plan to reverse the state-owned company’s struggling financial and production situation.
Zinke Pushes for Review of Interior and Regulations at OTC
Secretary of the Interior Ryan Zinke praised America’s resource potential and regulatory framework at OTC. He also laid out his plan to review the department and signed two secretarial orders.
New Study: US Shale Rebound Strengthened By Dealmaking
A Houston-based energy consultancy concludes that a series of downturn deals have contributed more to the resiliency of the US shale sector than a rise in oil prices.
CERAWeek: Global Trade Remains Vital to Industrial Operations
Industry CEOs examine the role of global trade with the UK Minister for Energy and Industry.
CERAWeek: New ExxonMobil CEO Addresses Carbon Reduction, Expresses Optimism On US Gulf Coast Downstream
The new head of ExxonMobil used his first major public appearance to emphasize the major oil company's committment to environmental concerns through the development of emerging technologies.
CERAWeek: Statoil, Petrobras CEOs Discuss Leadership Challenges in Difficult Environments
The CEOs of Petrobras and Statoil discuss the challenges their companies face in enacting economically and environmentally sound operational policies.
Thunder Horse Expansion Builds on BP’s Gulf of Mexico Strategy
Completed 11 months ahead of schedule, BP’s Thunder Horse South Expansion project furthers the company’s deep water agenda.
Risk-Based Abandonment-Prioritization Strategy for Inactive Subsea Wells
This paper describes how an exploration-and-production company successfully developed and applied a qualitative risk-based abandonment-prioritization strategy for an inventory of inactive subsea wells.
Mexico’s Deepwater Auction a Success; Now What?
Mexico’s historic public tender for its deepwater real estate resulted in the awarding of eight out of 10 blocks on offer.
Iran Opens Field Investment to Global Bidders
Iran’s national oil company is offering investment opportunities in 50 fields to global bidders, its first effort to do so since the 2015 pact with world powers that lifted nuclear-related sanctions against the country.
Governments, companies, service providers, and many other stakeholders in the industry have realized the oil-price outlook may remain low for longer than expected and the need to plan accordingly.
Integrated Asset Modeling: An Approach to Long-Term Production Planning
With declining trends in production and dwindling reserves for a 35-year-old offshore field, the Samarang Redevelopment Project was initiated with a vision toward implementing integrated operations as an asset-management decision-support tool.
How Visualization Technology Is Maximizing Uptime
Visualization technology has played a key role in reducing operational expenditure (OPEX) and improving collaboration, thus maximizing uptime across the industry throughout the asset life cycle.
Anticipation, Uncertainty High for Upcoming Mexico Auctions
The opening of Mexico’s oil and gas sector was a landmark moment in the industry, but despite the potential upside, the uncertainty and risk surrounding unfamiliar offshore territory in a volatile price market kept many potential investors at bay.
A Deepwater Gasfield-Development Strategy for Trinidad and Tobago
Applying an economic analysis for Trinidad and Tobago's deepwater gas fiscal regime, results were calculated for various price scenarios to identify a workable strategy for development of offshore resources.
Shift Toward Permian Drives Rising Rig Count
The US rig count has inched up recently, and the driver has been the old reliable of onshore oil production, the Permian Basin. With surging production, the Permian is the only major US oil shale play to grow since crude prices began to fall.
Mergers in a Low Oil-Price Environment: Proceed With Caution
Merger and acquisition activity has been limited since prices started to fall in 2014. But there are signs that M&A activity may be building, and oil company management teams should think about which deal strategies they should pursue.
Surviving the Downturn: Oil Executives See Continued Tough Times Ahead
Holding little back, speakers at the annual IHS CERAWeek conference in February discussed how the industry has been shaped by the disruptive impact of North American shale production and predicted that many more months of financial pressure will spell the end for some companies.
Onshore Support for Mexico’s Deepwater Blocks Lacking
The deepwater blocks Mexico plans to lease to international operators in December are among the deepest, most remote, and geologically challenging in the world. But the difficulties of developing these areas will start onshore, where adequate and secure port facilities are few and far between.
Vietnam Still Holds Much E&P Opportunity
As oil companies struggle with the collapse in crude prices and industry upheaval, assessing the future of exploration and production (E&P) in specific countries requires a longer term vision of a market in which prices will have stabilized and rebounded to a level yet undetermined.
Lingering Global Oil Bust Will Lead to Lasting Changes
Predictions of a 2016 recovery in the exploration and production (E&P) sector became increasingly rare after 2015 ended with a thud as oil prices sank below USD 40/bbl.
Financial Pressures To Drive Industry To Consolidate
Pressure is growing this year for exploration and production (E&P) companies to “face the reality of a prolonged period of low prices,” said Alan Cunningham, technical director for Gaffney, Cline & Associates.
Service Focus Changes the Cost per Barrel
During a protracted period of depressed prices in E&P, the customer focus for service companies and suppliers shifts to finding ways to reduce the cost of producing a barrel of oil.
Living-Dead Equipment Adds to Oversupply
Those who track drilling and fracturing equipment are apt to mention zombies. That is the living-dead machinery still counted as available to work, but more likely now to be used for spare parts or scrapped.
Aligning Diverse Portfolios and Execution for Capital Efficiency
Aligning a diverse portfolio with an organization’s execution capabilities and capacity is imperative in achieving capital efficiency and meeting shareholder expectations.
Applying Lessons Learned To Minimize Overall Investment in Unconventional Plays
This paper provides a retrospective assessment of the Barnett and Eagle Ford Shale plays to highlight lessons learned and the associated value of those learnings.
A Technical-Limits Approach Applied To Maximizing Gasfield Recovery
This is the teaser
The need for cost and capital efficiency calls for careful integration of technical and commercial elements.
Management: Using Composite Modeling as a Means to Maximize Profitability
Many companies too often focus solely on maximizing current production when they should really be focusing on maximizing profitability. A holistic, total asset modeling process is needed to reorient the focus of digital oilfield systems to focus on the net present value (NPV) of every project.
Guest Editorial: How I Stopped Worrying and Learned to Love Customization
While some standardization makes sense, it is important for the industry to implement cost-effective supply chain practices to efficiently deliver customization when it improves efficiency and increases production.
Argentina Remains Out of Reach for Smaller Players
After offering incentives to international operators last year to drill in Argentina, the country still has more work to do in attracting foreign investment.
Unconventional Technology Gains Exceed Expectations, but Low Prices Offer a Stern Test
Oil markets displayed their manic-depressive side in August, dropping to around USD 40/bbl early and jumping back to near USD 50/bbl at month’s end.
Profits Possible at Low Oil Prices But Tough Changes Required
Low oil prices look like something the industry needs to get used to. “This will be with us for a while,” said Rex Tillerson
Upbeat Natural Gas Producers Show Value of Low Expectations
The price declines for oil and natural gas are equally brutal, with roughly a 50% decline for both fuels.
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