Oil Prices News

© bomboman/AdobeStock

Rebuilding Confidence in Reactivated DP Assets

periods.  While not an ideal status, lay-up is a proven cost saving alternative in situations where charter rates are below vessel operating cost and provides an option that owners can use for short or long-term financial respite.More recently, however, 2018 has seen an upturn in production as oil prices have risen. While exploration activity has not directly mirrored this trend, the establishment of new supply chain contracting models, along with new standards for efficiency established by the operators, generates optimism that 2019 will continue the trend of slow but steady growth within the

Boosting technology from Schlumberger's OneSubsea (File image: Schlumberger)

Schlumberger Sees International Growth in 2019

Schlumberger NV on Friday reported quarterly revenue that topped estimates and forecast single-digit growth in international markets this year even as crude prices have tumbled roughly 30 percent since October.With the drop in oil prices many producers were evaluating spending budgets for 2019, stoking concerns that a slowdown in activity would hurt oilfield service companies that have struggled to boost prices since the 2014 downturn.Schlumberger, a bellwether for the oilfield services sector, said recent volatility in crude prices has led to more uncertainty in the spending outlook for oil and gas

Graph: Rystad Energy

Offshore Service Market to Outspace Onshore Shale

drastically as shale, but offshore budgets were at a 10-year low last year, after four years of intense cost focus, and from that level you don’t need much additional activity or inflation to drive up the market,” Rystad Energy head of oilfield services research Audun Martinsen said.Since oil prices fell in the fourth quarter of 2018 and the oil market outlook for 2019 appeared more bearish, shale budgets for this year have been cut drastically to compensate for the anticipated loss of revenues.“We saw the tendency already last month that the shale service market started to hit the brakes

© MiaStendal/AdobeStock

Crude & Fuel Outlook: Fund Managers Neutral

Hedge fund managers show signs of having completed their recent sale of crude and refined fuels, with positions edging up slightly in the first week of the new year, amid hopes a recession can be averted.Oil prices have bounced off their recent lows, the U.S. dollar has weakened against most other major currencies and expectations of a trade deal between the United States and China are rising.Portfolio managers raised their net long position in ICE Brent crude futures and options by 6 million barrels to 158 million barrels in the week to Jan. 8.Funds also boosted their net long position in European

(File photo: TechnipFMC)

TechnipFMC Names New Chairman

Oil services group TechnipFMC said on Thursday Doug Pferdehirt would replace Thierry Pilenko as its executive chairman, following Pilenko's imminent retirement.Pilenko was one of the key directors behind the 2016 merger between French company Technip and U.S. rival FMC, as a drop in oil prices spurred consolidation within the oil services sector.(Reporting by Sudip Kar-Gupta; Editing by Mark Potter)

David Millar, Director TechX Program, The Oil & Gas Technology Center

TechX: Pioneering and Accelerating

didn’t exist 18 months ago.Historically, it has taken up to 15 years for some new technology to be accepted by the U.K. oil and gas industry. Start-ups faced an uphill battle, with unprecedented failure rates in excess of 90 percent.However, the downturn has upended that trend. The impact $30/bbl oil prices had on the U.K. industry and the North East of Scotland is still fresh in our minds. Nonetheless, with 20 billion boe still out there to recover in the U.K., we have a huge opportunity ahead of us.A realization has dawned within the industry that they have done as much as they can to make themselves

(Photo: Fugro)

Fugro Q3 Revenue Jumps

Dutch deep-sea prospector Fugro has reported a 29.1 percent rise in third-quarter revenue on a comparable basis, driven by the expansion of offshore wind developments and a recovery in the global oil and gas market.Rising oil prices have helped Fugro by making it more economic to prospect for the hard-to-reach subsea deposits in which it specializes."In our early cyclical marine site characterisation activities we are experiencing sharp growth and improving prices, resulting in strongly improved profitability," Chief Executive Mark Heine said in a statement on Friday.Third-quarter revenue

(Photo: Aker BP)

Aker BP Q3 Operating Profit Beats Forecast

Aker BP's third-quarter operating profit rose more than expected, helped by a boom in oil prices, the Norwegian oil firm said on Friday, while reducing planned capital and exploration spending.Earnings before interest and taxes (EBIT) rose to $548 million from $219 million in the same quarter a year ago, beating the $521 million expected by analysts in a Reuters poll.The company slightly reduced its 2018 capital spending guidance to $1.25 billion from $1.3 billion, and exploration spending to $400 million from $425 million, while maintaining its production guidance at 155,000-160,000 barrels of

Image: KPMG

Oil And Gas CEO: New Tech Creates Opportunity

; digital transformation programs, AI systems and robotic process automation.Further, 58 percent of O&G CEOs feel AI and robotics technologies will create more jobs than they eliminate. In fact, 93 percent of CEOs expect an increase in industry-wide headcount over the next three years.As oil prices remain elevated, industry confidence is up and CEOs are setting their sights on growth opportunities, with 85 percent very confident or confident on industry growth, and 88 percent very confident or confident on company growth prospects.As part of their growth strategies, 83 percent of O&G

(Image courtesy of SBGS)

Seismic From Below

platforms and engineering structures submerged or installed in the seabed. Also, of fundamental importance, OBS operations are characterized by their relatively low environmental impact. It should also be noted that the demand for OBN projects in deep water plays increased during the recent crisis in oil prices, as they had a lower cost, compared to the seismic acquisition projects using streamers.“The better physics of OBS acquisition – stationary receivers placed in the lower noise environment of the sea floor, no limits to the offsets and azimuths between the seismic sources and the seabed

© Eugenio Roqueñi / MarineTraffic.com

Transocean to Buy Ocean Rig in $2.7 Bln Deal

Ltd said on Tuesday it would buy peer Ocean Rig UDW Inc in a $2.7 billion cash-and-stock deal, its second major acquisition this year as the company bets on a recovery in the offshore sector.The acquisition signals new optimism for offshore drillers, which were hit hard by the steep plunge in oil prices from 2014. Offshore projects, which are more costly than onshore work and take years to develop, became less attractive after oil prices fell to below $30 a barrel in 2016.Global crude prices have since recovered to above $70, renewing producer interest in offshore basins around the world, including

(File photo courtesy Fugro)

Fugro H1 Profit Boosts Shares

substantially driven by strong growth in offshore wind, growth in the building and infrastructure market and a gradually recovering oil and gas market."The company said it expects positive cash flow from operating activities in 2018.The oil services industry took a big hit from a crash in oil prices that started in 2014, but with prices having more than doubled from 2016 lows and set to hold steady into 2019, the outlook is more favorable.($1 = 0.8562 euros)(Reporting by Tommy Lund and Anthony Deutsch; Editing by Sunil Nair and Dale Hudson

© ligados / Adobe Stock

Singapore's Offshore Industry Recovering

on a return to the glory days anytime soon.The industry, along with a top-class finance sector, has been a key pillar of Singapore's economic transformation into a first world economy since independence from British colonial rule in 1965 and a source of national pride. But a 2014 collapse in oil prices has resulted in thousands jobs lost, several defaults and billions of dollars in debt restructurings.Now, as oil prices pick up, the industry is coming back to life. A 28.3 percent year-on-year jump in output from the marine and offshore engineering sector in June was the biggest since March 2014

Schlumberger CFO Ayat to Retire Soon

firm, three people familiar with the matter told Reuters.Stephane Biguet, currently vice president of finance, is the frontrunner to replace Ayat, according to the people who declined to be named because the matter is not yet public.Schlumberger declined to comment.The CFO change would come as rising oil prices and dwindling producer reserves are helping lift demand for oil services, which were hit hard by the 2014 oil price crash.Schlumberger executives have said oil companies will have to increase spending to overcome declining output from existing fields and meet future demand.Ayat's successor

Kaikias subsea infrastructure (Image: Shell)

Shell Starts New Gulf of Mexico Field ahead of Plan

."We believe Kaikias is the most competitive subsea development in the Gulf of Mexico and a prime example of the deep-water opportunities we're able to advance with our technical expertise and capital discipline," said Andy Brown, Shell's Upstream Director.Following the collapse in oil prices in 2014, companies have sharply reduced costs for developing fields by slashing the cost of services, simplifying engineering plans and increasing the use of technology.Kaikias is located some 130 miles (210 kilometers) off the coast of Louisiana in the Mars-Ursa basin. Shell holds an 80 percent

Photo: Jan Arne Wold / Woldcam

Statoil to Become Equinor, Dropping 'Oil'

for the next 50 years," Eldar Saetre, Statoil's chief executive, told Reuters.The new name was meant to arouse curiosity among young people so they see the other aspects of Statoil, including renewable energy, he added.Technology students became less interested in working for oil firms after oil prices crashed in 2014 and renewable energy gained in prominence.Statoil ranked 15th in an annual survey of the Nordic country's most attractive employers conducted by karrierestart.no, a Norwegian careers website, and Norwegian firm Evidente, published on May 3. In 2013, it ranked first.There are

McDermott Closing CB&I Deal

a memorandum of understanding with Aramco for a marine fabrication complex at Ras Al Khair. With the exception of an existing fabrication facility, McDermott's dealings with Aramco are focused so far on offshore, upstream partnerships.The offshore sector was hard hit by the 2014 downturn in global oil prices, and while prices this year have recovered to over $70 a barrel, offshore activity remains subdued, Dickson said."The industry will be cautious for quite a long period of time. I think we're in a new world where it just takes longer for projects to get to FID [final investment decision]

Marine Technology Magazine Cover Jan 2019 - Underwater Vehicle Annual

Marine Technology Reporter is the world's largest audited subsea industry publication serving the offshore energy, subsea defense and scientific communities.

Subscribe
Marine Technology ENews subscription

Marine Technology ENews is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

Subscribe for MTR E-news