Halliburton, Baker Hughes Beat Profit Estimates as International Demand Offsets Weak N. America
profit on Wednesday on the back of strong demand for oilfield services internationally, even as domestic activity stumbled. While oilfield drilling has seen a resurgence abroad, particularly in regions like the Middle East and Latin America, since Russia's invasion of Ukraine, weaker oil and gas prices have forced U.S. shale producers to cut oil rigs. "Growing economic uncertainty continues to drive commodity price volatility globally... Market softness in North America is expected to be more than offset by strength in international and offshore markets," Baker Hughes chief
Scotland Unveils $78 Mln Fund to Support Energy Sector
The Scottish government said on Friday it has set up a 62 million pound ($78 million) fund to help the energy industry recover from the impacts of the coronavirus crisis and the collapse in oil and gas prices.The energy transition fund will support businesses in the sector over the next five years and help to attract private sector investment, focusing on Scotland's north east.Projects under consideration for funding include an underwater hub in Aberdeen to help the subsea and underwater sector to grow, an energy transition zone business park, and hydrogen projects."It is vital we move
Brexit: What’s in Store for the Subsea Sector?
for the UK subsea industry is that Brexit could potentially lead to a breakup of the UK. Then a big hit, which happened at the last referendum, is that people will put a North Sea oil and gas development spending on hold for a while until they know the nature of the settlement. Particularly, given oil and gas prices, a lot of investments are now even more marginal. I think having the double whammy of a low oil price and further financial uncertainty around projects, whilst the UK is haggling with the EU and Scotland haggling with the UK, there is a risk that responding could be put on the back burner.&rdquo
Statoil Robust Performance Continues
, planned maintenance and expensed exploration wells * Strong operational performance and improvement programme on track * Positive net cash flow and reduced net debt ratio * Lowering 2016 capex and exploration guidance “The financial results were affected by low oil and gas prices, extensive planned maintenance and expensed exploration wells from previous periods. We delivered solid operational performance with strong cost improvements and progress on project execution”, says Eldar Sætre, President and CEO of Statoil ASA. “Strict prioritisation and
Struggling U.S. O&G Companies Eye Rare Financing Deals
Some cash-strapped U.S. oil and gas companies are considering creating an unusual layer of debt as a way of surviving the rout in oil and gas prices, according to restructuring advisors. Chesapeake Energy Corp for example is considering the strategy to swap some of its roughly $9 billion debt. Severely distressed companies may issue so-called 1.5 lien debt, sandwiched between the first and second liens, to raise new capital. Investors with a stomach for risk would get a better yield than for the top debt, and have a stronger claim than junior creditors if the company filed for bankruptcy. Compa
Deepwater Downturn: Bump in the Road or Long-Term Slowing of Growth?
and gas demand keeps growing • Supply disruption potential keeps the focus on finding new sources of supply • Long term oil/gas prices will rise, driven by demand/supply fundamentals In the negative category are • Near term oil and gas prices have fallen to levels that discourage investment • Major energy companies have been cutting back on capital expenditures • More supply has suddenly come into the oil and gas market • Shale/tight oil and gas projects are
Offshore O&G Lease Sale: Continued Interest in Deepwater
is in water depths of more than 5,250 feet (1600 meters) and received two bids. The terms and conditions of Sale 235 encourage diligent development, environmental protection and ensure a fair return to taxpayers. Although Sale 235 reflected current market conditions of lower oil and gas prices, the number of high bids and the number of bids in deepwater were proportionately similar to last year’s central sale illustrating strong, continuing industry interest in the deepwater Gulf of Mexico.
Offshore Oil & Gas: Floating Production Market a Bright Spot
long term outlook for the sector is very positive. 239 floating production projects are in various stages of planning as of early May. These projects will reach an investment decision over the next ten years. We expect many of these projects to be financially viable investments at oil and gas prices likely to prevail over the next several decades. Of these, 61% involve an FPSO, 10% another type oil/gas production floater, 21% liquefaction or regasification floater and 8% storage/offloading floater. A detailed review of the future market and forecast of production floater
The Deepwater Sector's Perfect Storm
deepwater supply chain, it is a short term event – a bump in the road, in our view The recent drop in oil prices clearly lowers near term cash flow and impacts the ability to fund capital spending. But investment decisions in major offshore projects are based on a long view of oil and gas prices. No one expects oil and gas prices to remain at the level they have dropped to over the past few months. The futures market, for example, is pricing crude eight years out at $25 more that the current spot price. Demand and supply fundamentals have not really changed.
February 2024
