Fossil Fuels Still Attractive Despite Financial Crisis

Press Release
Thursday, April 05, 2012

New York - Demand for oil and natural gas continues to grow, despite the current economic downturn, indicating a positive future outlook for oilfield services, according to a new report by business intelligence expert GBI Research.

The new report shows that, for the most part, the global oilfield services industry has grown exponentially over recent years, witnessing a rapid increase in revenue and advancement in technologies. Increased exploration and production activities have seen the discovery of reserves in new regions, necessitating an expansion in oilfield services.

A significant rise in unconventional plays within the North American region has necessitated an increase in the demand for pressure pumping services, which are currently driving the capital expenditure of oilfield services. This will come as a much-needed boost to operators, who may have been affected by the cuts in exploration and production activity following the global financial crisis and Deepwater Horizon incident in the U.S. Gulf of Mexico (USGOM), which resulted in the implementation of regulatory plans worldwide. Since then, operations have been accelerating with a steady rise expected until 2016.

Recent discoveries of promising fields not yet in production will provide a cushioning effect for any reverberations felt from the economic crisis with the future for the oilfield services industry looking optimistic as a result of technology advances and fresh methods of tapping unconventional reserves. Such innovation is generating confidence in the performance of the oilfield services industry, and growth resumption is anticipated for 2012-2013. Long-term projects may therefore face postponement, but are likely to escape cancellation.

However, the market is not without its risks. Oilfield service majors rely upon on subcontractors and equipment providers, which increases the risk of deadlines and budgets being adversely affected. This dependency can force companies to compensate Oilfield service companies may also potentially face increased financial risks associated with long-term, fixed-price contracts with national oil companies (NOCs). These contracts allow oilfield service companies to provide integrated project management services, but invite additional risks associated with labor availability and productivity, cost overruns, supplier and contractor pricing and performance, operating cost inflation, and potential claims for liquidated damages.
 

Maritime Reporter March 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Offshore

Coast Guard tactical air squadron holds change of command ceremony

Capt. Kevin P. Gavin relieved Capt. Donna L. Cottrell as commanding officer of Coast Guard Helicopter Interdiction Tactical Squadron Jacksonville during a change of command ceremony at HITRON Friday.

Shell Commited To Russia Expansion Despite Sanctions

Royal Dutch Shell is committed to expansion in Russia, Chief Executive Ben van Beurden told Russian President Vladimir Putin at a meeting on Friday amid sanctions

Russia Ships First Oil From Offshore Arctic Platform

President Vladimir Putin hailed Russia's first shipment of Arctic offshore oil on Friday, saying the platform decried by environmentalists will help Moscow expand its global energy markets share.

Energy

Barclays To Exit Some Commodities Markets

Barclays is planning to withdraw from parts of the metals, agricultural and energy markets, echoing moves by other major players like JPMorgan Chase and Morgan

Libya's Zueitina Oil Port Reopening Delayed

  Technical problems have delayed the reopening of Libya's eastern Zueitina oil export terminal after the government reached a deal with rebels to end an eight-month blockade of the port,

World Petroleum Congress to be held in Moscow

Deputy Prime Minister of the Russian Federation, Arkady Dvorkovich, has confirmed that the 21st World Petroleum Congress will be held in Moscow from 15 – 19 June 2014.

News

Barclays To Exit Some Commodities Markets

Barclays is planning to withdraw from parts of the metals, agricultural and energy markets, echoing moves by other major players like JPMorgan Chase and Morgan

Libya's Zueitina Oil Port Reopening Delayed

  Technical problems have delayed the reopening of Libya's eastern Zueitina oil export terminal after the government reached a deal with rebels to end an eight-month blockade of the port,

Transas to Participate in ETC-2014

Transas will take part in the ETC-2014 – The second International Forum on Seafarers’ Education, Training and Crewing. The Forum which consists of the Conference

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Naval Architecture Navigation Offshore Oil Port Authority Ship Repair Ship Simulators Shipbuilding / Vessel Construction
rss | archive | history | articles | privacy | 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: 0.1232 sec (8 req/sec)