E&P Spending 2000: Boom or Bust?

Thursday, February 03, 2000
While the theoretical jury deciding which direction the offshore drilling market will take is still out, recent data suggests that the level of spending internationally will disappoint. Calling a 10.2 percent gain in spending may seem a bit harsh, particularly given the depths to which the market has sunken in the previous two years. But considering that the price per barrel has catapulted from the $10 level early in 1999 to the mid-20's by the beginning of 2000, it is fair to say that expectations were set a bit higher. According to a recent Lehman Brothers survey, the following are the spending plans, by world region, for more than 320 oil companies. The silver lining to the above numbers, of course, is the level of increase expected in North America. But despite these advances — there are still noticeable reservations regarding activity levels — reservations being the result of many factors. First, the energy markets have been through —and continue to — embark on a trail toward historic levels of consolidation. It is still undefined as to how fewer, larger companies will deploy their E&P dollars. Second, the actions of the member of OPEC are still in question. Oil pricing gains are largely the result of output cutbacks. While the organization appears more committed than ever to maintaining a profitable supply and demand balance, there are no guarantees that the market won't be flooded with new reserves at any given moment. For example, countries with poorly performing economies or who weather severe natural disasters may be enticed to increase output to fill budget gaps. While offshore players seemingly expected the bounce back to be delayed until mid-year, following naturally industry tendencies, it is fair to say that offshore rig and service providers and their investors are itching to start locking up contracts again.
Maritime Reporter November 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Cruise Ship Trends

Maritime Reporter @ 75: The Daily Cartoon

Maritime Reporter & Engineering News was founded by John J. O'Malley (1905-1980) in 1939, and today ranks as the world's largest audited trade publication in the world serving the maritime industry,

Wärtsilä Bags Seawater Desalination System Orders

The Meyer Werft Germany, Meyer Turku, STX France and Fincantieri shipyards have all placed orders with Wärtsilä for the supply of fresh water generators to a total of seven cruise ships.

NRL Researchers Demo Ship-to-Shore Data Link

Scientists at the U.S. Naval Research Laboratory (NRL) along with Mercury Continuity (MC) have demonstrated the Tactical Reachback Extended Communications (TREC) system in the port of Miami.

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Naval Architecture Navigation Pipelines Salvage Ship Electronics Ship Repair Shipbuilding / Vessel Construction
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1039 sec (10 req/sec)