Oil and gas survey reveals fear of oversupply by Daniel J. Graeber Washington (UPI) Jan 25, 2018 The greatest threat to growth in the U.S. oil and natural gas sector is a market shifting deeply to the supply-side, a survey of industry leaders found. DNV GL, a Norwegian company providing risk management advice, said a survey of 813 senior oil and gas professionals revealed concerns about an oversupplied market. Strong growth in U.S. shale oil production and a previous practice from the Organization of Petroleum Exporting Countries to defend a market share with more output left the market oversupplied and contributed to a drop in oil prices below $30 per barrel in early 2016. "The survey indicates that the greatest perceived barrier to growth in the United States is over-supply of oil and gas," the company's report read. "This was cited by twice the number of respondents in the United States compared to globally." OPEC in January 2017 started implementing an agreement, with help from Russia, that sidelined about 2 percent of the global demand in an effort to erase the surplus on the five-year average of crude oil inventories. That effort is now in its second year and some OPEC players are calling for long-term production cuts. The agreement, and its strong compliance so far, has helped pull crude oil prices to four-year highs. The price for Brent crude oil, the global benchmark, is now trading above $70 per barrel. That rise, however, coincides with forecasts that total U.S. oil production could reach a point this year that would rival that of Saudi Arabia. The Americas arm of DNV GL said renewed concerns of an oversupplied market helped explain why more than a third of the respondents said cost management would be their top priority this year, compared with less than a quarter last year. "With the price of oil stabilizing, offshore developments are now able to attain better margins and our survey indicates a cautious turnaround in optimism for the U.S. oil and gas industry," Frank Ketelaars, DNV GL's regional manager, said in a statement emailed to UPI. "However, it's still a very tough market, so it is not surprising to see a further increase in focus on cost control for 2018." Nevertheless, most respondents, 69 percent, said their companies would at least keep capital spending the same as last year. That's compared with 47 percent who said the same thing last year. A survey of 134 energy firms from Dec. 13-21 by the Federal Reserve Bank showed an index measuring confidence had its first sign of reduced uncertainty since the first quarter of 2017. Most of that optimism came from drilling services companies, those that were hit hard by the market downturn in early 2016. Texas is the No. 1 oil producer in the United States. Earlier this month, Todd Staples, the president of the Texas Oil and Gas Association, said the exploration and production side of the industry should drive capital investments in the region this year. In its assessment of industry confidence, DNV GL's survey found the outlook in North America improved from 49 percent last year to 57 percent. It was Latin America, however, that saw the greatest improvement, jumping from 31 percent in 2017 to 77 percent.
Washington (UPI) Jan 24, 2018 French energy company said it was setting a deeper footprint in the U.S. waters of the Gulf of Mexico by taking a minority stake in a Chevron-controlled field. For an undisclosed sum, the French supermajor said it bought the 12.5 percent interest in the four blocks covering the Anchor discovery from Samson Offshore Anchor. Chevron declared a discovery at the Anchor reservoir in 2014 and ... read more Related Links All About Oil and Gas News at OilGasDaily.com
|
|
The content herein, unless otherwise known to be public domain, are Copyright 1995-2024 - Space Media Network. All websites are published in Australia and are solely subject to Australian law and governed by Fair Use principals for news reporting and research purposes. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA news reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. All articles labeled "by Staff Writers" include reports supplied to Space Media Network by industry news wires, PR agencies, corporate press officers and the like. Such articles are individually curated and edited by Space Media Network staff on the basis of the report's information value to our industry and professional readership. Advertising does not imply endorsement, agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. General Data Protection Regulation (GDPR) Statement Our advertisers use various cookies and the like to deliver the best ad banner available at one time. All network advertising suppliers have GDPR policies (Legitimate Interest) that conform with EU regulations for data collection. By using our websites you consent to cookie based advertising. If you do not agree with this then you must stop using the websites from May 25, 2018. Privacy Statement. Additional information can be found here at About Us. |