The Organization of Petroleum Exporting Countries (OPEC) is a cartel of 14 major oil-exporting countries. There are 12 oil barons who are said to control the world’s energy supply, with Ali bin Ibrahim- al-Naimi from Saudi Arabia said to have the most powerful voice. By regulating the supply of oil, OPEC attempts to manipulate the price of oil on the world market. The way the oil world used to work Researchers have identified the period between 1973 and 1997 as being the age of OPEC. There was dominance over oil production that meant OPEC held significant, direct influence over globalRead more
The simple answer to the question posed in the title is “yes”. Yes, there is a skills crisis in the oil and gas sector. More than half of those working in the industry believe that the skills shortage is the biggest challenge facing the industry now and into the future. Retirement of older talent The first factor causing a skills crisis is “The Great Crew Change”. Older workers are leaving, reaching retirement age, and taking the skills, expertise and knowledge along with them. This loss of institutional memory is worsened by a lack of focus on talent acquisition in recentRead more
With the new year closing in, we are all interested in predicting the direction of travel for the oil and gas sector, and where best to inject our funds. As with all facets of oil and gas production, upstream priorities are fast-moving. Here are some potential areas that could interest investors in 2020. Industry 4.0 continues The expected spend on Industry 4.0 is expected to be $907 billion per year, and this is likely to continue into 2020. If you have yet to catch up with the developments in Industry 4.0, it is a term used to refer to theRead more
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
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
Natural gas usage around the world is still on the rise for a number of reasons but a main one being it is better for the environment than other fossil fuels. Countries such as China are increasingly using it to power long distance trucking and countries like Ireland are considering using it to improve their energy security. However, as the main component of natural gas is methane, a major greenhouse gas, the accidental but inevitable emissions of this gas during the production, processing and distribution of natural gas constitute a significant threat to the environment. That is why energy companies BP, Eni, ExxonMobil, Repsol, Shell, Statoil, Total and Wintershall are committing to reducing emission in every part of their operations.
Egypt's demand for gas has long outstripped its supply capacity. At an estimated $8bn this fiscal year, the cost of importing oil and gas is a drain on Egypt's economy. With most of the current oil and gas wells reaching maturity, this situation will only get worse. However, new gas reserve discoveries, changes in government policy and foreign investment look to boost Egypt's gas production to not only negate the deficit but to allow them to export LNG. Presenters at the Offshore Technology Conference in Houston stated that they believed Egypt could significantly reduce its LNG imports as soon as 2018 and they anticipate that they could increase their gas production by more than 90bn m3 by 2022.
A recent Cross Sector Efficiency Study by the Oil & Gas Industry Council and PwC stated “Only fundamental change to the way businesses work and interact will generate the level of sustainable change necessary to compete for international investment in the North Sea and maximise recovery.” In an attempt to affect this type of change, the UK Oil and Gas Authority (OGA) has launched a competition to find new and innovative ways to use extensive seismic data collected on the Rockall Basin and Mid North Sea High. Scientists and engineers will have the chance to compete for a slice of the £500,000 worth of funding available to develop new technology to exploit these findings.
Gazprom, the energy group controlled by the Russian state, has been embroiled in disputes over both contracts and supplies this summer.
After a torrid 2014, the UK’s North Sea oil industry is determined to ensure that it remains a viable, global player in the years ahead.