Oil and Gas: a sector where politics drives prices

The decisions of politicians impact many sectors of the economy. The banking sector, for instance, has long since dealt with government regulation and intervention. Therefore, the oil and gas sector cannot say it is victimised or claim to be a unique economic ecosystem. However, the impact of politics on the fluctuations in the price of oil and gas is a factor that can offer opportunity, but it can also offer risk. The importance of political decision making on the oil and gas prices make it a worthy topic for discussion and exploration. Here we explore the overarching issues worth considering.Read more

What are the tailwinds and headwinds for oil and gas in 2019?

As we enter the new year, the best of us are seeking to predict what will drive us forward and what will hold us back in 2019. Here we present a possible vision for this coming year and how the oil and gas sector might respond. Tailwind: Improved technology will drive rationalisation of the workforce The lower workforce costs attributed to the improvement in technology is likely to be a major tailwind in 2019. Of course, the influence of technology – with Big Data and the Internet of Things – has served to rationalise processes over the past few years.Read more

How the global component shortage is affecting ExiFlow

The global shortage of electronic components is impacting every electronics manufacturer across the globe, causing unavoidable production delays for many of their customers. It’s an issue which is set to continue into next year and it may well take until the end of 2019 for component manufacturers to catch up with demand. As one of those customers, we thought we’d take a look further into what the implications of the global component shortage are for ExiFlow. Causes of the electronic component shortage The principal cause of the electronic component shortage is a global surge in the use of technology andRead more

Why collaboration across the oil and gas sector is so important

The oil and gas sector is a sprawling industry. The length and breadth of the supply chain is mind-blowing. With the pressure on prices and the reluctance of the consumer to bear the weight of increased costs, the time has come when collaboration is the only way to ensure effective and efficient delivery. Here we explore the main arguments for greater integration and cooperation across the supply chain and potentially between competing entities. We are bloated and overweight From exploration, to drilling, to production, to logistics – there is company after company in a supply chain that goes on beyondRead more

The Digital Technology Revolution

Another revolution… really? There are probably too many revolutions happening in the oil and gas sector – the information revolution, the environmental revolution… and more. Is it hyperbole to suggest there is a revolution in the use of digital technology? Yet, there are some commentators that go so far as to suggest that digital technology will be the saviour of the sector. Big talk. So, the key question is: what evidence is there to support this view that AI, cloud computing and connectivity, and robotics could rejuvenate a sector under pressure? The problem we face The oil and gas sectorRead more

The current state of shale

The shale industry is impacted by the levels of oil production in other areas. When oil demand is satisfied easily then the prices go down. This is a truth about the oil industry full stop – whether it is shale or traditional oil exploration and production. However, this is not the first question that needs to be asked about shale. The first question that anyone looking on at the shale industry would ask is: why are the prices per barrel so much lower for shale? Global oil reached a robust price of $70 to $80 a barrel recently – butRead more

The role and challenge of Big Data in the Oil & Gas Sector

The problem of Big Data The oil and gas sector is no different to any other industry – it is overwhelmed by more analytics than it can possibly cope with. Big Data may seem like a term coined in management conferences – but, in reality, it is as much of a challenge to oil and gas as elsewhere. The rewards that might come from harnessing its potential are high – but so are the difficulties in making this a reality. The exploration, production and delivery of oil and gas supplies is complex. The Big Data produced might not be theRead more

What are the causes of the increased confidence in the oil and gas sector?

What are the causes of the increased confidence in the oil and gas sector? Confidence is high is the oil and gas sector. Stocks are on track to show the best performance since 2011. Recently US crude oil hit a 3-year high. Production is up, 22% according to the SPDR, and areas of underperformance have been highlighted and addressed. This has resulted in the revival of $110 billion in oil and gas sector projects since early 2017. At times of prosperity it is always important to reflect on why confidence has risen, and performance improved. It is especially important toRead more

Is oil and gas drilling coming to an end?

The end is nigh A council in Colorado, US, recently voted to stop all surface drilling within the city and its limits. The case against surface drilling was the health and safety of the residents. Does this tell the whole story? Not really. The council has still approved fracking under the nearby lake as a necessary compromise under the current laws. Therefore, although politicians seem to be moving towards acting against the drilling rights of oil and gas companies, their reach is limited. In Dorking, UK, 100,000+ signatures were gathered in February of this year demanding the Environment Agent refuseRead more

How IBM are making Oil and Gas more Efficient

Oil and gas prices may be looking up slightly but margins are still incredibly tight and companies are constantly trying to make their operations more efficient. As there is so much data involved in decisions, proposals and forecasting, there were serious efficiency savings to be made in the way all this data was processed because it was taking teams of people months or even years to put together proposal documents. IBM’s Natural Resource Solutions Centre (NRSC) in Calgary, Canada, recently worked with Minestar Group Corp. to come up with a data processing solution to increase productivity while improving efficiency andRead more