Rystad Energy News

16 Feb 2020

Oil Firms to Spend $53Bn at Stabroek Block

Image: Rystad Energy

Global oil firms are preparing to spend more than $53 billion in Guyana’s coveted Stabroek Block during the coming decade.According to Rystad Energy research, recent discoveries in the Guyana-Suriname basin have proven a wider petroleum system and may cause an upgrade in resource estimates, drawing extra attention to upcoming wells.It said that with more than 8 billion barrels of recoverable oil discovered in Stabroek thus far, companies are set to boost their capital expenditure for the area…

09 Feb 2020

Australia Becomes World's Largest LNG Exporter

Graph: Rystad Energy

Australia has become the largest liquefied natural gas (LNG) exporter in the world. The record figure knocked Qatar out of the top spot."Australia is set to become the world’s largest liquefied natural gas (LNG) exporter this year, overtaking Qatar, with its supplies expected to reach 81 million tonnes (MT) as Ichthys LNG and Prelude FLNG increase production," Rystad Energy said.Meanwhile, Qatari exports will remain at current levels, around 77 MT. The US will increase LNG exports from about 36 MT in 2019 to 56 MT in 2020, dominating new LNG supply contributions.

16 Dec 2019

Deepwater Investments to Grow +5% in 2020

Graph: 	Rystad Energy

Though overall global upstream investments in 2020 will decrease by around 4%, deepwater will be the only segment expected to grow above 5% next year, spelling a boom for the industry, said a report.Rystad Energy is forecasting that overall global upstream investments in 2020 will decrease by around 4%. Investments in shale/tight oil are expected to contract the most next year by almost 12%.Rystad Energy believes that the lower oil price and weaker cash flows will force shale companies to reduce activity.

08 Dec 2019

Offshore: OSV Market Report

Photo courtesy Ulstein Group/Marius Beck Dahle

The environment in oil patches onshore and offshore alike has been challenging throughout 2019; worries about an economic slowdown – whether cyclical or induced by a trade war – have weighed heavily on oil prices, even in the face of reduced production by the big producers. Though storm clouds persist, there appears a clearing on the horizon.The fate of Offshore Service Vessels (OSVs) is, naturally, closely tied to the price of oil. Seacor Marine’s John Gellert, in reviewing its Q2 results, said: “Activity levels in the U.S.

27 Nov 2019

US Nearing Energy Independence

Graph: Rystad Energy

In just a few months, the U.S. will be fully energy independent and by 2030, the country's total primary energy production will outpace primary energy demand by 30 percent.According to the Norwegian market research consultancy Rystad Energy, this milestone follows a strong period of growth in both hydrocarbon and renewable resources."We forecast that the US will have primary energy surplus – and not a deficit – by February or March 2020, depending on the intensity of the winter season…

25 Nov 2019

GoM Oil Output Set for Record Year

Graph: Rystad Energy

The U.S. Gulf of Mexico is positioned for another year of record oil production in 2020, despite massive cuts in investment.According to Rystad Energy, most of this growth coming from deep water projects.“2020 is expected to be another record year with average production above 1.9 million barrels per day,” says Joachim Milling Gregersen, an analyst on Rystad Energy’s upstream team.Oil production in the Gulf of Mexico has grown every year since 2013, with an average of 104,000 barrels per day added annually.

19 Nov 2019

Petrobras to be World's Largest Oil Producer

Graph: Rystad Energy

Brazil’s Petrobras is on track to become the world’s largest oil producer among publicly listed companies by 2030, based on Rystad Energy’s latest data and forecasts.Brazil’s biggest-ever oil auctions in November were generally deemed to be disappointing, receiving muted interest from international exploration and production companies.However, national oil company Petrobras could not have asked for a better outcome. The world’s fastest growing oil producer gained nearly full control of more than eight billion barrels of oil in the Buzios field…

18 Nov 2019

Oil Majors to Raise $27Bln in Selling Spree

Pic: Rystad Energy

Global giants of the oil and gas industry – the so-called supermajors – are looking to sell assets that could fetch a total of $27.5 billion, according to Rystad Energy’s latest assessment.These companies are actively shedding mature assets on a massive scale in a bid to finance higher-yielding investments elsewhere, with the added benefit of pleasing shareholders who are calling for stricter capital discipline.“The expected transactions mean some of the majors are poised to exit certain regions…

15 Nov 2019

US Shale Sector Performs Well

Graph: Rystad Energy

U.S. shale operators are on track to grow 2019 oil production by around 16% over 2018 thanks to impressive operational execution so far this year.The third quarter earnings season revealed that shale companies increased their oil production by about two percent, all while cutting the midpoint guidance for yearly drilling and completions expenses, according to Rystad Energy.The energy research and consulting firm headquartered in Norway said that U.S. shale operators will continue expanding in the fourth quarter…

12 Nov 2019

Southeast Asia Bullish on OFS Market

Graph: Rystad Energy

Offshore project sanctions in Southeast Asia could lift greenfield investments in the oilfield services market by nearly 70 percent in 2020, said Rystad Energy.According to Norwegian energy research firm, the growth will be driven by a handful of new mega-projects across Malaysia, Myanmar and Vietnam, according to the latest tally of project commitments in Southeast Asia by the Norwegian energy research and consulting firm.New final investment decisions (FIDs) in 2021 are expected to sound the starting gun for big contract awards in Vietnam…

31 Oct 2019

E&P Companies Struggle on RoI

Graph: Rystad Energy

International  exploration & production (E&P) are struggling to make money from offshore investments made during the latest investment upturn, according to a new study by Rystad Energy.Rystad Energy has evaluated all offshore oil fields sanctioned since 2010 and ranked them by estimated value per barrel of oil (boe) under various oil price scenarios. The return on investment (RoI) figures were not up to the mark.The sanctioning activity was record-high during the strong investment cycle from 2010 to 2014…

30 Oct 2019

Oilfield Services Firms Moving Beyond Oil

Graph: Rystad Energy

Heavyweight oilfield service providers like Saipem and Baker Hughes are moving past just oil and gas projects and embracing more renewable energy projects going forward.In 2014, non-upstream oil and gas activities accounted for 22% of revenues among service suppliers. This share grew to 27% in 2018.According to Rystad Energy, the trend to accelerate in the next decade.“If pure-play contractors within drilling, well services and seismic – which don’t have much to offer outside the upstream oil and gas industry – are removed from the equation…

29 Oct 2019

Orca-1 is Largest Gas Discovery of the Year

Image: Kosmos Energy

On 28 October 2019 oil giant BP announced a major gas discovery, Orca-1, exploration well in the BirAllah area off the coast of Mauritania.“The deepest and largest discovery so far this year, Rystad Energy estimates Orca-1 holds around 1.3 billion barrels of oil equivalent (boe) of recoverable resources,” says Palzor Shenga, a senior analyst on Rystad Energy’s upstream team.Offshore continues to dominate exploration in 2019, both in terms of the number of discoveries and the volume of resources unearthed.

21 Oct 2019

Oil Market to Depend on AI to Fix Downtime

Graph: Rystad Energy

Unplanned outages are on the rise globally from both equipment failures and damages. Smaller operators do not have the excess capital to conduct the same level of planned outages.As traditional methods of predicting equipment failure can be unreliable in a dynamic operating environment, they can be hesitant to sanction significant shutdown work unless it is absolutely necessary."Thus, they are forced to ride out operational uncertainty and have unfortunately seen unplanned outages increase…

15 Oct 2019

US Crude Exports Expected to Double by 2022

Graph: Rystad Energy

The U.S. could see its crude oil exports nearly double by 2022, according to energy research firm Rystad Energy. US crude exports could grow from current levels of 2.9 million barrels per day (bpd) to nearly 6 million bpd by 2022.With US production expected to increase by 1.2 million bpd year-over-year (y/y) in 2020, and with domestic refineries already maxing out capacity to absorb shale growth, Rystad Energy expects exports to balloon and reach 4.7 million bpd by the end of…

08 Oct 2019

Digitalization: Oil Industry Could Save up to $100Bln

Graph: Rystad Energy

The global oil and gas industry can save as much as $100 billion through automation and digitalization in the 2020s, energy research firm Rystad Energy said."As much as $100 billion can be eliminated from E&P upstream budgets through automation and digitalization initiatives in the 2020s. Service companies are reinventing themselves to help operators unlock these savings," said the study by  Rystad.In 2018, $1 trillion was spent on operational expenditures, wells, facilities and subsea capital expenditures across more than 3,000 companies in the upstream space.

07 Oct 2019

Flaring Runs Higher in Permian

Graph: Rystad Energy

Flaring and venting in the Permian Basin has stabilized in the range of 600 million to 650 million cubic feet per day (MMcfd), according to Rystad Energy’s preliminary data for the third quarter of 2019.Venting is gas release without combustion, whereas flaring is the burning of excess capacity. In New Mexico, vented and flared gas is reported separately and our research indicates that, on average, 5% to 15% of total flared and vented production stream is vented.In particular…

06 Oct 2019

Frac Water Demand to Increase 30% by 2022

Graph: Rystad Energy

Frac water demand is expected to increase 30% by 2022, with 53% of that increase taking place in the Permian Basin, said Rystad Energy in its recently released “Water Management Report”.The increase in water demand is mostly driven by increases in forecasted completions activity, and the continued trend towards longer laterals.Rystad Energy expects frac water demand across the US to hit 4.9 billion barrels in 2019, with 2.28 billion barrels taking place in the Permian Basin.Rystad Energy normally defines spare capacity as a country’s underutilized capacity, including any current outages.

01 Oct 2019

Europe Looks for Gas as Groningen Folds

Image: Rystad Energy

Europe’s energy landscape will be completely changed once the Dutch shut down the largest gas field on the continent years ahead of schedule, according to Rystad Energy.The Netherland recently announced that production at Groningen – Europe’s largest gas field – will be halted in 2022, eight years earlier than initially planned. However, despite the ambitious target of decommissioning the field by 2022, Rystad Energy expects that there could be some residual production from Groningen…

26 Sep 2019

US Shale is Not Doomed, Says Rystad Energy

Image: Rystad Energy

Though bankruptcies among U.S. onshore exploration and production (E&P) companies are on the increase during these days, Rystad Energy doesn’t believe this indicates doom for the shale industry.“In a nutshell, we do not believe the recent bankruptcies that have beset a number of shale players are indicative of an industry-wide epidemic,” says Alisa Lukash, a senior analyst on Rystad Energy’s North American Shale team.During the next seven years, the top 40 US shale oil producers…

24 Sep 2019

Equinor to be ‘Offshore Wind Major’

Graph: Rystad Energy

The multi-billion capital investment by Equinor at its new Dogger Bank Offshore Wind Farm will see it rival its major oil and gas projects, according to Rystad Energy."The offshore wind project Dogger Bank in the UK North Sea will not only be Equinor’s largest project through 2026, it will also rank as the sixth largest offshore development project in the world during this period," said the energy research firm.UK authorities announced on Friday that Equinor and joint venture partner SSE have been chosen to develop the world’s largest offshore wind farm…

16 Sep 2019

Oil Price Spike after Saudi Attack Temporary

Graph: Rystad Energy

The drone attack on the world’s largest oil processing facility, Abqaiq in the heart of Saudi Arabia’s oil industry, forced Saudi Aramco to shut in 5.7 million barrels per day (bpd) of crude production, which equates to 7% of the current global crude and condensate production.Rystad Energy says that oil price spike will be short-lived. Bjørnar Tonhaugen, head of oil market research at Rystad Energy said: “The bullish reaction in oil prices will likely be limited by Saudi Arabia’s vast quantities of crude in storage…

15 Sep 2019

Non-Opec Supply Set to Surge

Graph: Rystad Energy

Liquid production growth for non-OPEC countries reached the highest rate on record in 2018, with a growth of almost 2.9 million barrels per day (bbl/d).For this year, the trend suggests that non-OPEC countries’ liquid production will reach above 2 million bbl/d once again, led by tight oil.Rystad Energy expects liquid production growth of non-OPEC countries will continue reaching record highs in 2020. However, despite strong tight oil production, offshore will have a much greater…

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