Energy Analysts News

Freeport LNG, the second-biggest U.S. liquefied natural gas (LNG) exporter, got approval from federal regulators on Thursday to take early steps to restart its fire-idled LNG export plant in Texas.Freeport, however, has not yet sought permission to restart the liquefaction trains that turn natural gas into LNG for export. That resumption of LNG production will have to come in a later request with federal regulators.Energy analysts have said they still expect most of the plant's…

German Chancellor Olaf Scholz halted the Nord Stream 2 gas pipeline project designed to bring more Russian gas to Germany on Tuesday after Russia formally recognized two breakaway regions in eastern Ukraine.Europe's most divisive energy project was finished in September but has remained idle since then pending certification by Germany and the European Union.The project is designed to double the amount of gas flowing from Russia straight to Germany under the Baltic Sea, bypassing…

Japan's nascent offshore wind industry is expected to increase dramatically over the next ten years, according to energy analysts Wood Mackenzie, who predict that by 2028 the island country will boast upwards of 4 gigawatts (GW) of offshore capacity, a 62-fold increase on 2018 figures.As nuclear power falls out of favour in the aftermath of 2011’s Fukushima Dai’ichi nuclear disaster, Japan has struggled to bring its nuclear reactors back on the grid. Only nine reactors have successfully come online, bringing operational capacity to 9 GW last year.Wood Mackenzie estimates that Japan will face a power generation shortfall of more than 10 GW by 2030…

U.S. oil production may stop growing in the second half of this year and could fall in 2016 as low oil prices make the majority of oil wells uneconomic, according to a report released on Tuesday by IHS Inc energy analysts. Global oversupply of oil has knocked 60 percent off prices since June last year, forcing a slowdown in drilling and putting the brakes on a five-year boom that pushed U.S. production to record highs. Production will likely grow in the next few months as oil producers honor contractual obligations and finish work on a backlog of wells that have already been drilled. But growth will halt in the second half of the year if oil prices remain below $60 a barrel, according to the IHS report based on a study of 39,000 oil wells. U.S.

World crude production may rise and fall, but the historical trend shows a steady increase in the price of a barrel of oil, and with it, the price of a ton of fuel. Add the demands of shareholders and charterers to increase operational efficiency and profitability, as well as increasing international pressure to reduce fuel consumption and associated greenhouse gas emissions. It is no wonder that ship owners have seen a steady rise, as well, in the availability of technologies — from ship design to propulsion and HVAC systems to hull coatings — that are purported to reduce fuel consumption.

Japan is preparing to bolt turbines onto barges and build the world’s largest commercial power plant using floating windmills, tackling the engineering challenges of an unproven technology to cut its reliance on atomic energy. Marubeni Corp., Mitsubishi Heavy Industries Ltd. and Nippon Steel Corp. are among developers erecting a 16-megawatt pilot plant off the coast of Fukushima, site of the nuclear accident which pushed the government to pursue cleaner energy. The project may be expanded to 1,000 megawatts, the trade ministry said, larger than any wind farm fixed to the seabed or on land. “Japan is surrounded by deep oceans, and this poses challenges to offshore wind turbines attached to the bottom of the sea…

Engineering professor and petroleum industry veteran Michael J. Economides expressed concern over comments made by President Obama's national oil spill commission co-chair, William K. Reilly, advocating a complete safety overhaul of America's oil and gas industry. "It would be absurd for the administration or the oil and gas industry to satisfy demands of a political activist with an ideological bias against traditional fuel and whose only knowledge of how an offshore rig works comes from studying BP's ill-fated Macondo well blowout," Dr. Economides said. "U.S. "Policies coming from the White House wrongly assume BP was operating inside industry norms," Dr. Economides said. As of September 2010, the administration's drilling ban alone had eliminated 20,000 jobs in the Gulf region.

In recent years the floating liquefied natural gas (FLNG) business has rapidly grown and is now at the forefront of offshore industry focus. The second edition of this major report, by energy analysts Douglas-Westwood, brings together in one document a clear review of the current and future prospects, technology concepts and markets forecasts for expenditure in the FLNG sector. The report addresses both the floating regasification and the floating liquefaction vessel markets and quantifies the size of the opportunity in volume and value. The business is poised for substantial growth, particularly within the liquefaction sector, and is forecast to be worth $7.4b by 2016. The IEA forecasts annual growth in natural gas supply will average 1.6% from 2006 to 2030.

“Due to increasing demand and reducing reserves, oil prices currently at $40 are likely to soon enter a period of sustained rises resulting in a need to massively develop natural gas and renewable energy resources” according to John Westwood of energy analysts Douglas-Westwood. “Oil reserves are depleting and demand growing. Recent increases in oil demand from China, for example, are likely to accelerate. The average American consumes 25 times as much oil as the average Chinese yet China has 5 times the population and is industrialising rapidly. Vehicle growth in China is rising rapidly and this will cause global demand for oil to continue its increase.

If the world’s LNG trades evolve in the future as many expect, there will be significantly more work for ship repairers in the Atlantic Basin. There are, for the moment, only a few yards with such experience, including Izar (Spain), Sobrena (France), Keppel Verolme (Rotterdam), Blohm & Voss (Hamburg) and Grand Bahama Shipyard. However, there are reports that studies are under consideration to examine the feasibility of new drydocks and possibly expansion at existing repair facilities to cope with this new business. Recent developments with respect to energy prices are likely to hasten such studies. With crude oil prices rising by nearly 15% over the last month alone…

"Due to increasing demand and reducing reserves, oil prices currently at $40 are likely to soon enter a period of sustained rises resulting in a need to massively develop natural gas and renewable energy resources" according to John Westwood of energy analysts Douglas-Westwood. "Oil reserves are depleting and demand growing. Recent increases in oil demand from China, for example, are likely to accelerate. The average American consumes 25 times as much oil as the average Chinese yet China has five times the population and is industrializing rapidly. Vehicle growth in China is rising rapidly and this will cause global demand for oil to continue its increase.

"Over the next five years it is expected that 15,000 offshore wells will be drilled worldwide, at a total cost of some $189 billion. Of these wells nearly 4,500 will be exploratory costing $75 billion, and around 10,500 will be development, costing $114bn. It is estimated that drilling and completion expenditure in 2003 was $36 billion. Spending levels are expected to grow somewhat over the next two years and then decline slightly, stabilising at about $37 billion per year." These are among the findings of the second edition of The World Offshore Drilling Report, published by Douglas-Westwood. The largest change that is forecast by the energy analysts is continuing growth in deepwater drilling (over 500 m water depth) which contrasts with a long-term decline in shallow water activity.

Over the past five years capital expenditure on floating production systems has totalled some $20 billion, but over the next five years this is forecast to increase by more than 50% to $32 billion. Annual spend is expected to soar to over $9 billion in 2004. These are amongst the findings of a major new study launched today at Houston’s annual Offshore Technology Conference by energy analysts Douglas-Westwood and industry data specialists Infield Systems. The analysts forecast that West Africa will get the lion’s share of future investment in floaters, with investments of some $11 billion destined for the region. This is nearly twice the spend in the other major regions with the Gulf of Mexico at $6.1 bn., Brazil at $5.1 bn and Asia Pacific at $4.7 bn.

A new study of the worldwide prospects for offshore renewable energy recently commissioned by the U.K.’s Department of Trade & Industry from energy analysts, Douglas-Westwood Associates (DWA), has identified 77 proposed offshore wind power projects totaling over 13,000 MW of generating capacity. In the opening address to delegates at the second annual ‘All-Energy Opportunities’ conference in Aberdeen, DWA partner John Westwood stated that prospects on screen had increased from 22 in 2001, to 77 in 2002 - “a remarkable growth in such a short period”. DWA analyst Katharine Evans said that their models indicated that if realized these projects could require some 4,000 km of underwater power cables.

The World Oil Supply Report,a new study published by energy analysts Douglas-Westwood is now available. The World Oil Supply Report considers all existing and potential oil producing countries and forecasts their likely future oil reserve depletion, year and level of peak production. It includes all known and 'yet to find' oil reserves including onshore & offshore, deepwater and shallow water, and unconventional resources such as oil sands. The data is then combined to give a view on the limits to global oil production. The report defines the year in which oil supplies will be unable to continue to meet demand. production, its volume, and the resultant maximum production level for world oil supplies.

The world is drawing down its oil reserves at an unprecedented rate and even assuming no growth in demand it is likely that that by 2010 oil supply will be constrained by global production capacity and oil will permanently cease to be abundant. Supply and demand will be forced to balance - but at a price. Then, like during the oil shocks of the 1970’s, prices could double and treble within two or three years as the world changes from oil abundance to oil scarcity. The world is facing a future of major oil price increases which will occur sooner than many people believe. These are amongst the conclusions of The World Oil Supply Report, an important new study published today by energy analysts Douglas-Westwood.

Deepwater is one of the few areas where good prospects of major oil finds still remain, and these are mainly outside the control of OPEC. In a note to clients today, John Westwood, MD of international energy analysts Douglas-Westwood said “over the past year the stock prices of a grouping of 10 companies with significant exposure to the sector (the Douglas-Westwood Deepwater Index) has risen by an average of 79% and one, Wellstream, by 157%”. Deepwater now accounts for almost 15% of total offshore oil and gas production, but over the next few years its total share relative to shallow-water output will grow, to around 20% of offshore production by 2011.

While the recent high-profile problems of the western oil majors’ adventures in Russia have occupied the attention of politicians, the giant Russian oilfield services industry continues to work delivering the products and services that produce the oil. Speaking at conferences in both London and St. Petersburg, executives from energy analysts Douglas-Westwood (DWL) outlined the scale of the opportunities available to investors. John Westwood, DWL managing director speaking at the SubseaTECH 2007 Conference in St. Addressing members of the Energy Institute in London, DWL’s assistant director Steve Robertson stated that, “the oilfield services industry has evolved rapidly in recent years, driven by operators’ increasing use of outsourced services and a move to Western business models.

Even as Ernesto was downgraded into a tropical depression, U.S. energy security may still be at risk in the Gulf of Mexico, UPI reported. At stake this hurricane season is another round of devastating storms, which could further hinder crude oil and natural gas production off the Gulf of Mexico. The deep waters of the Gulf of Mexico bring in nearly 1.5 million barrels of oil a day, or 25 to 30 percent of the nation's overall production, and 10 billion cubic feet of gas, according to the Department of Energy's Mineral Management Service. As of late June, offshore oil production was down 12 percent from last year and gas extraction was running 9 percent below normal levels.

The offshore industry should enjoy steady growth over the next five years and the longer-term prospects are looking even better as the potential for higher oil prices grows. Addressing delegates at a special meeting of the Society of Underwater Technology at London’s Imperial College today speakers from leading energy analysts Douglas-Westwood and offshore industry data specialists Infield systems painted a picture of long-term growth. However, the growth was mainly seen to be outside the North Sea where the reserve sizes of new field developments are now very small. “The oil majors have already voted with their dollars and shifted their attention to the deepwater areas of Brazil, West Africa and the Gulf of Mexico” said John Westwood, Douglas-Westwood’s MD.

The long-term growth in the transport sector will shortly become unsustainable due to oil price increases forecast to occur in the next few years. These are amongst the conclusions of an important report by energy analysts Douglas-Westwood. Oil price rises due to concerns over a possible war in the Middle East are, according to the report authors, nothing compared to what is ultimately in prospect. The World Oil Supply Report states that global oil reserves are being drawn down at an unprecedented rate and even assuming no growth in demand it is likely that that by 2010 oil supply will begin to be constrained by global production capacity and oil will permanently cease to be abundant. Supply and demand will be forced to balance – but at a price.

The World Oil Supply Report, new study published by energy analysts Douglas-Westwood is now available. The World Oil Supply Report considers all existing and potential oil producing countries and forecasts their likely future oil reserve depletion, year and level of peak production. It includes all known and 'yet to find' oil reserves including onshore & offshore, deepwater and shallow water, and unconventional resources such as oil sands. The data is then combined to give a view on the limits to global oil production. to meet demand. oil supplies. and long-term strategic planning by companies and governments. 241 pages, 112 figures and 16 tables. 26 countries worldwide, from Alaska to Australia. multinationals, etc.

The following is an outline of some of the key conclusions of the "The World Offshore Drilling Report 2003-2007" recently published by energy analysts Douglas-Westwood. Offshore drilling has, for the last 30 years, been the driving force behind growth in oil and gas industry activity and production. Beginning in the 1960s, after global opportunities on land had begun to decline, offshore drilling levels grew rapidly, peaking in 1981 following two decades of technology improvements and a decade of energy price rises. Since then, offshore drilling levels have broadly stabilized on a flat trend, albeit moving up or down in response to fluctuations in energy demand and oil price.