Oil Majors Push Offshore Players for 30% Cuts
30%That’s the minimum level of capital expenditure cuts facing owners and operators of offshore rigs, vessels and various support services, as they scramble to keep equipment working and their heads above water during one of the worst oil downturns in 30 years. From a high of $108 per barrel in June of last year, prices plummeted roughly 60% as supply surpassed weakening demand, crashing in November to around $44 a barrel. The pricing collapse caught all sectors of the industry and financial markets by surprise, pulling down with it market valuations, quarterly earnings and day rates.
LNG: Gas Demand Drives Investment
A bright future is forecast for the LNG industry, as long-term gas demand drives major investment in global LNG facilities. A new report from energy business advisors, Douglas-Westwood (DW), predicts the Pacific basin will be the main contributor to a ten year global investment high of $26 billion per annum by 2015. The report is being launched this week at the 6th FLNG Asia Pacific Summit, Singapore and the 5th Annual Gas Storage Conference, London, with presentations by Jason Waldie and Joseph Dutton. “Last year saw recovery in LNG demand, led by Asian consumers. China, in particular, has seen its LNG demand grow from 1 bcm in 2006 to around 13 bcm today. LNG imports to Western European and Latin American countries have also increased.
Douglas-Westwood Opens in Singapore
Leading international energy business advisors Douglas-Westwood today opened a new office in Singapore. Located at 1 Fullerton in Singapore’s central business district, the new facility will manage the Douglas-Westwood group’s Advisory and Research business across the Asia Pacific region. Group CEO Andrew Reid said “Establishing in Singapore is core to our continued internationalisation strategy and provides our organisation with a global presence, building on the investment in expanding our European and North American offices in previous years.
