Smaller LNG Projects More Viable Ahead of Potential Supply/Demand Shortfall
Companies are planning smaller LNG plants, which may be COVID-proof, but the industry still faces a 100-mtpa supply shortfall in the mid-2020s.
COVID-19 Pushes OFS Headcount to Lowest Level in Over a Decade, Revenue Per Employee Set to Decline
Among the top 50 oilfield service firms, downsizing is estimated to land at a headcount of 610,000, down from the 760,000 maintained after the 2016 downturn.
US Crude Exports to China May Depend on Arbitrage
US crude exports to China have decreased from peak levels in May and June, but Vortexa said there may be unique opportunities looking forward.
Frac Sand Companies’ Bankruptcies Add to OFS Sector Troubles
The contraction of the shale sector and its operations such as drilling and completions due to COVID-19 and the drop in oil price has sifted down to the frac sand suppliers.
Supply/Demand Fundamentals Bring US LNG Exports Down More Than Half in Q2
The drop in US LNG exports comes amid a combination of weak demand, ample supply, additional capacity coming on line, and flexibility to cancel US cargoes.
More Job Cuts Announced in Europe
Sandvik and Van Oord’s announcements come a week after oil major BP said it’s slashing 10,000 jobs.
UPDATE: Total Faces $12 Billion Shortfall as it Continues $20 Billion Mozambique LNG Project
Construction on Mozambique LNG stopped in April due to COVID-19, but Total continues work on the project even amid a $12 Billion shortfall. Financing for the Mozambique LNG project follows engineering contracts awarded by Total in the past few months.
Prudent Ways to Restart Big Projects in Post-Pandemic World
Delays and disruptions have stymied project plans in the past few months. How will companies prevent current stresses from morphing into catastrophic issues?
As Major Offshore Projects Are Pushed Out, Gloomy Year Ahead for the Subsea Market
While a year with less than 200 subsea tree awards seems uncommon, a year with less than 100 awards is an even rarer sight. It has only happened once before since the turn of the century, in 2016 following the oil price crash of 2014–2016.
Study Finds Most Workers Prefer WFH as Companies Return to Normal From COVID-19
In a survey of 448 workers across the oil and gas industry, UH Energy asked key questions about returning to work during the global pandemic.
OFS Companies’ Stock Price, EBITA Margins Hit Hard From COVID-19 Fallout
Two intelligence groups share similar views on how the fallout from the COVID-19 pandemic has impacted OFS companies’ valuations and operations.
FPSOs May Need To Be Shut Down During Economic Downturn
FPSO sanctioning is at a minimum and few opportunities remain for FPSO suppliers to find new work and redeploy their vessels. Suppliers may be forced to accept day rate reductions in order to keep their vessels working.
Tech Director's Column: Facing Down the Current Crisis
I suspect that most people’s 2022–2030 strategic planning windows have shifted. Operational and tactical plans and strategies will need to be based on a widely divergent set of assumptions.
Global Oversupply of Crude Leads to Scramble for Storage Solutions and Alternatives
No vacancy? The hunt for global alternatives to store crude oil includes offshore, global strategic reserves, pipelines, rail cars, and trucks.
Greenfield E&P Tenders Are Set To Shrink to $60 Billion in 2020, a 2-Decade Low
Rystad Energy's analysis shows the decline is in contrast to $170 billion worth of tenders awarded in 2019. Tender activity is expected to show marginal recovery in 2021, reaching about $74 billion.
Commercial Crude Stockpiles Nearing Record Levels
The US crude inventory grew by 74 million bbl since 13 March when the US declared a national emergency in response to COVID-19.
Global Supply/Demand Imbalance Cut in Half for May as Storage Space Remains Tight
Rystad Energy estimates show demand will be at its lowest in April before moving back up again in May.
Subsea UK Upgrades Market Intelligence Tool
SubseaIntel will provide an overview of its upgrades over the next 3 months.
Current Challenges for the UK and Norway in the Face of COVID-19
Westwood Global Energy’s analysis looks at production, cost, and revenue estimates in the UK and Norway, should oil prices remain low. The research group also provided an outlook on drilling activity.
OGUK Survey Aims To Find Supply Chain Solutions
Results of the survey will provide support for the UK’s initiatives to help businesses affected by the industry downturn and the COVID-19 pandemic.
Global Gas Prices Expected To Drop Further Than Expected in 2020
The drop in gas prices, although greater than forecast, will not be to the same extent as oil prices.
UPDATE: Schlumberger Cuts Executive Salaries, Workforce
The company's North American business will accelerate a restructuring that includes job cuts and furloughs over the next couple of months.
Aker Solutions Joins Ranks of Service Companies To Reduce Capex and Workforce
Sandvik and SNC-Lavalin made similar announcements in late March and would take further action if necessary.
Oil and Gas in the Perfect Storm
The market in 2020 will be oversupplied by 3–5 million B/D and global inventory will surpass 400 million bbls over the next few months, according to ADI Analytics.
Status Updates of North American LNG Projects Offer a Mixed Bag
Several companies have provided updates on their North American LNG projects, including Pembina, LNG Canada, and Sempra. The outlooks vary from plans to move ahead to others seeking money to stay afloat.
COVID-19 May Impact More Than Half of all Oil and Gas Projects Being Sanctioned
Revised estimates of project sanctioning total $61 billion in 2020, which is down from $192 billion forecast in 2019.
European Gas Demand and Power Consumption Estimates Revised on COVID-19
Gas demand is expected to grow by just 2 Bcm in 2020, down from previous expectations of 6 Bcm. The Netherlands, UK, Germany, and Spain are expected to see the biggest impact.
Europe's Oilfield Service Companies at Risk of Bankruptcy Amid $5 Billion in Cuts
More than 200 companies could become insolvent in the UK and Norway. This number may be larger when including the rest of Europe.
Offshore Industry More Resilient Than Shale Amid COVID-19 Impact
Because offshore project lead times are longer than in shale, production is likely to come on line in 2–5 years when oil prices may be higher. But the number of FPSOs to be sanctioned this year may be cut by half.
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29 September 2020
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