Business and Finance

  • capex

    Chemical and oil companies to slash capex

    In the wake of the coronavirus and collapse in crude oil prices, chemical, and oil and gas, and midstream companies will all slash capital spending (capex) for growth projects to preserve cash. As a result, the... more
  • US$50bn

    Over US$50bn in capital expenditure cuts announced

    As the oil and gas sector comes to terms with decade-low oil prices and global disruptions caused by COVID-19, company costs and investments are being slashed with over US$50bn pledged to date and more on the h... more
  • Egypt’s Oil and Gas market builds

    Egypt holds an extremely rich history, with a culture dating back thousands of years. The same is true for thecountry’s petroleum industry, which has its roots as far back as Pharaonic times. However, it was ... more
  • How attractive is Australia for Oil and Gas investments?

    From an investment point of view, a lot has happened in the global oil and gas industry over the past year.  Many new developments have either been approved or started production, with one of the most recent b... more

Chemical and oil companies to slash capex

In the wake of the coronavirus and collapse in crude oil prices, chemical, and oil and gas, and midstream companies will all slash capital spending (capex) for growth projects to preserve cash. As a result, the US and global chemical investment wave looks to slow considerably in the years ahead. While major US chemical projects under construction should continue, the fall in Brent crude oil prices and the shrinking of the Brent/US Henry Hub natural gas ratio from the 30s to the mid-teens “puts into question the economics long term”, said Kevin Swift, chief economist of the American Chemistry Council (ACC)... more

Over US$50bn in capital expenditure cuts announced

As the oil and gas sector comes to terms with decade-low oil prices and global disruptions caused by COVID-19, company costs and investments are being slashed with over US$50bn pledged to date and more on the horizon, according to GlobalData. Daniel Rogers, Oil and Gas Analyst at GlobalData says that of the announced US$50bn in cuts to date, approximately 20 per cent of that is coming solely from Saudi Aramco, which could have implications for its ongoing expansion projects in the country. “Elsewhere, across the supermajors, the investment cuts are within the 20-25 per cent range, resulting in multibilli... more

Egypt’s Oil and Gas market builds

Egypt holds an extremely rich history, with a culture dating back thousands of years. The same is true for thecountry’s petroleum industry, which has its roots as far back as Pharaonic times. However, it was not until 1835 when the first surface geological investigations were made in Egypt by a French Naval officer. According to Egypt’s Ministry of Petroleum and Mineral Resources (MPMR), the Egyptian government drilled its first well in 1886 in the Gamasa area (470 kilometres from Egypt’s capital, Cairo) on the western coast of the Red Sea.  The well produced 25 barrels of crude oil per day with commer... more

How attractive is Australia for Oil and Gas investments?

From an investment point of view, a lot has happened in the global oil and gas industry over the past year.  Many new developments have either been approved or started production, with one of the most recent being Italian oil and gas company Eni commencing production in the Vandumbu field in December. The Fraser Institute recently released its annual Global Petroleum Survey, which is a guide to how major investors are perceiving the industry. The researchers surveyed a total of 256 petroleum industry executives and managers across the globe and accumulated sufficient data to evaluate 80 jurisdictions which a... more

Gas sector faces unpredictable year amidst market strains

In its latest short-term gas and LNG outlook report, Wood Mackenzie weighs the unpredictable risks coronavirus, sustained low oil prices and LNG oversupply pose to the sector this year. Wood Mackenzie research director Robert Sims said while the collapse of LNG prices towards US production break-evens was foreseeable, the narrative for the rest of 2020 could not be more unpredictable. “An already oversupplied LNG market comes out of a mild winter with high inventories across Europe and Asia, only to face a global pandemic which has already destroyed gas demand across China and looks increasingly set to d... more

Oil price crash dents timeline of Australia’s second wave of FIDs

Analysts suggest that Australia’s next wave of LNG projects are likely to be delayed due to the latest oil price crash and other global events. Barossa and Scarborough are strategically important LNG backfill/ expansion projects for Santos and Woodside, respectively. Both companies have spent significant capital acquiring and progressing these assets. For Woodside, Scarborough is a key field that will make up about a third of its production by the mid-2020s. Barossa, on the other hand, is pivotal for Santos to reach its 100 million barrels of oil equivalent target by 2025. More importantly, Barossa will ... more

Oilfield service sector feels the pain as budget cuts bite

While the long-term impact is still unclear, the oil price crash is bleak news for oilfield service (OFS) companies. If operators hurt, the supply chain feels it too – possibly more. Coming into 2020, the service sector had been struggling with low margins, over-supply and weak investor sentiment. Any optimism regarding an uptick in 2020 has been unequivocally crushed. Mhairidh Evans, principal analyst in Wood Mackenzie’s upstream supply chain research team, said even more capital discipline from operators will reduce demand significantly in 2020. Whether offshore or Lower 48 market, only a handful of ... more

Unlocking future growth opportunities in the oil and gas sector

Australia’s oil and gas sector contributes strongly to the country’s position as a leading energy exporter. The nation’s world-class gas resources, geopolitical stability, proximity to lucrative markets and skilled workforce have long made it an attractive target for investment. Decades of investment, including that recently in LNG, have transformed the sector into the major global force it is today. However, any assumption that this pattern will continue indefinitely fails to acknowledge a number of challenges facing the sector. Oil prices have plunged and are likely to remain low for the foreseeable f... more

Pre-salt geology offers competitive advantage

One Australian energy junior could well generate some significant market interest during the remainder of 2017 on the back of a planned drilling program just off Gabon’s coast. Earlier this year Pura Vida Energy NL confirmed it was looking to spend an estimated US$20 million on three wells in the Nkembe block, an underwater project area covering 1,210 square kilometres in the Gabon Basin some 30 km from the West African country’s shoreline. During February the Africa-focused company, which listed on the ASX in 2012, received US$5.5 million ($7.3 million) after reaching a settlement with PXP Morocco BV,... more