DOCSLIB.ORG

2021 Oil and Gas M&A Outlook: Consolidation Through the Price Cycle

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
2021 Oil and Gas M&A Outlook: Consolidation Through the Price Cycle 2021 oil and gas M&A outlook: Consolidation through the price cycle Contents Executive summary 1 COVID-19 undermined market fundamentals in 2020 3 2020 M&A sector by segment 7 Four trends for 2021 13 Toward a brighter future 20 Endnotes 21 Lets talk 23 Methodology Deloitte’s 2021 oil and gas M&A outlook leverages Enverus’s global M&A database, updated on January 6, 2021. The data includes all reported 2020 upstream, oilfield services (OFS), midstream, and downstream transactions valued at more than $10 million, excluding those between related parties and government lease sales and licensing. Sector Deals Deals down YoY Sector Deals 258 deals 433 deals in 2020 in 2019 Deals down 218 B YoY 347 B 258 deals 433 deals in 2020 in 2019 Sector10 argest Deals Global Deals 218 B 2021 oil and gas M&A347 outlook: B Consolidation through the price cycle Upstream Deals down 10 argest Global Deals YoY 7 of 10 258 deals 433 deals Executive summary Midstream 4 deals in the in 2020 in 2019 Upstream USA The spread of COVID-19 greatly affected the oil and gas industry as deals across the sector in 2020, the lowest number in more than Downstream218 B 1 347 B demand for energy declined, compounded by supply uncertainty a decade. Deal value fell below $30 billion in the first half7 of of the10 Midstream 4 deals in the from OPEC+, leading to lower, more volatile commodity prices. year, also the lowest in the decade, but rebounded to almostUSA $170 Revenues and earnings declined substantially, leading to not just billion in the second half. The impact was felt across all segments, a pullback in capital spendingOFS and lower rig count, but also lower with oilfield services (OFS) being hit the hardest. 10 argest Global Deals Downstream 1 mergers and acquisitions (M&A) activity. There were only 205 Upstream Deal count down 50% 28 deals YoY 61 deals Key 2020 takeaways:OFS Upstream Deal value Upstream dealsin 2020 also declineddown 90% significantly, within value2019 and7 ofcount 10 Midstream deals in the down 50% and 40%, respectively,4 year on year. Though there were Sector deals USA several North American all-stock, lowDeal orcount no-premium transactions, 18 B down 50% 19 B There were 258 deals across the sector in 2020, down from 433 YoY that did not28 translate deals intoDeal a broadervalue pickup in 61upstream deals dealmaking. in 2019, with value declining from $347 billion in 2019 to $218 inDownstream 2020 1 in 2019 There were 138 deals worthdown $7090% billion in 2020, compared with 238 billion in 2020. Sector Deals Upstream deals worth $134 billion in 2019. 18 B 19 B OFS Deal value Deals down Sector Deals is down Sector Deals YoY 50% Deal count is 258 dealsUpstream 433 deals 138 deals Deal downcount 40% 238 deals in 2020 in 2019 in 2020 down 50%YoY in 2019 Deals down 28 deals YoY 61 deals YoY Deal value Deals down in 2020 downDeal 90% value in 2019 258 deals YoY433 deals is down in 2020 218 B in 2019 347 B 50% 258 deals 433 deals 70 B Deal count is 134 B in 2020 in 2019 138 deals down 40% 238 deals Global deals 18in B 2020 YoY 19 Bin 2019 218 B 347 B Of the 10 largest deals globally, five were in upstream, four were Midstream Midstream proved more resilient, with PipeChina’s $55.5 billion in midstream,218 and B one wasMidstream in downstream.347 B Seven of the 10 were 10 argest Global Deals acquisition of Sinopec’s70 B and PetroChina’s assets offsetting134 B lower deal in the United States. Upstream 10 argest Global Deals count. Midstream deal count halved year on year, but value was up Upstream more than 30%. There were 42 midstreamDeal count deals worth $106 billion Deal value 42 deals halved 81 deals 10 argest Global Deals Upstream Midstream in 2020, compared with 81 dealsis down worthYoY $79 billion in 2019. in 2020 Value50% up in 2019 7 of 10 Deal count is 138 deals more than down 40% 238 deals Midstream 4 7 of 10 deals in the 30% Upstream in 2020 YoY in 2019 Midstream deals in the USA 4 Deal count USA 106 B 79 B 42 deals halved 81 deals 7 of 10 YoY Downstream 1 in70 2020 B Value up in 2019134 B DownstreamMidstream1 4 deals in the more than Downstream USA 30% 106 B 79 B OFS OFSOFS Downstream Midstream1 OFS was hit the hardest, with deal value and count down 90% Downstream and 50%, respectively, year on year. There were only 28 deals Value dropped Downstream value50 deals declined yearmore thanon year, partially offset53 deals by a worth $1.8 billion in 2020,Downstream comparedDeal count with 61 deals worth $19 60% YoY down 50% Deal count Deal count single large transaction:in 2020 Marathon Petroleum’sFlat deal $21 billionin 2019 sale of 28 deals YoY 61 dealsdown 50% halved OFS billion in 2019. Deal value YoY 42 deals 81 deals in 2020 down28 90%deals Deal valuein 2019 61 deals its Speedway retail business to 7-Eleven.YoY Middlecount Eastern NOCs in 2020 in 2019 in 2020 Value up deal in 2019 down 90% investment slowed substantially in Asian markets in 2020, and the moreValue than dropped 40 B 115 B 30%more than Deal count absence of Middle50 deals Eastern-initiated megadeals like 53Saudi deals Aramco’s 18 B 19 B 60% YoY down 50% 2019 acquisitionin 2020of Sabic for $69.9 billion was a largein blow2019 to deal 18 B YoY 19 B 106 B Flat deal 79 B 28 deals Deal value 61 deals count in 2020 down 90% in 2019 value. While deal count was flat, value dropped by more than 60% deal Upstream year on year. There were 50 downstream deals worth $40 billion in 40 B 115 B Downstream 2020, compared with 53 deals worth $115 billion in 2019. Upstream 18 B Deal value 19 B is down 50% Deal count is 138 deals down 40%Deal value238 deals is down in 2020 YoY in 2019 Value dropped 50% Upstream Deal count is 50 deals more than 53 deals 138 deals down 40% 238 deals 60% YoY YoY in 2020 Flat deal in 2019 70 B in 2020 134 B in 2019 Deal value count is down deal 50% Deal count is 40 B 115 B 138 deals 70 B 238 deals 134 B Midstream down 40% 1 in 2020 YoY in 2019 Deal count Midstream 70 B 134 B halved 81 deals 42 deals YoY in 2020 Value up in 2019 more than 30% Deal count Midstream 106 B 79 B halved 81 deals 42 deals YoY in 2020 Value up in 2019 more than 30% Downstream Deal count 106 B halved 81 deals 79 B 42 deals YoY in 2020 Value up in 2019 Value droppedmore than 50 deals more than30% 53 deals 60% YoY in 2020 Flat deal in 2019 Downstream 106 B 79 B count deal 40 B 115 B Value dropped Downstream 50 deals more than 53 deals 60% YoY in 2020 Flat deal in 2019 count deal Value dropped 50 deals 40 Bmore than 53 deals 115 B 60% YoY in 2020 Flat deal in 2019 count deal 40 B 115 B 2021 oil and gas M&A outlook: Consolidation through the price cycle Four trends shaping dealmaking in 2021: Continued consolidation All-stock deals in the Permian 1 across the sector 3 and beyond The industry likely needs to hit the reset 2020 saw several high-profile, all-stock, button. The more than 100 upstream and low-premium upstream deals, many of which OFS bankruptcies in 2020 can help reduce focused on the Permian. This trend will likely the significant debt overhang weighing on continue into 2021 as companies try to get dealmaking and increase the number of asset deals across the finish line while balancing packages on the market at attractive prices. commodity price risks and wide valuation Based on current oil prices, bankruptcies spreads between buyers and sellers. Higher will likely remain elevated, helping the prices could boost larger-scale consolidation industry to discharge excess debt. However, outside the Permian in plays like the Eagle many companies are still overspending, Ford, but it remains early days. That trend overleveraged, and often overextended. could also start moving into the midstream Consolidation to achieve economies of scale and downstream as companies grapple can drive costs down so they can operate with long-term uncertainties around energy within their cash flows, as access to outside demand. Dealmaking has been sluggish capital has dried up for many—otherwise, in recent years, but that should change as the sector may find itself in the same position companies reposition themselves for an during the next economic shock. uncertain future post–COVID-19 and potentially take advantage of countercyclical investment opportunities. Increase in nontraditional capital sources 2 The energy transition New sources of capital are needed, or the 4 accelerates industry may need to rethink how it finances both organic and inorganic growth. Since Despite the pandemic, the energy transition 2016, equity issuance, IPOs, venture capital, continues to accelerate, with several companies and private equity investments have dropped making high-profile low-carbon target to almost zero—replaced often with debt. Oil announcements in 2020. As environmental, and gas sector debt issuance has continued social, and governance (ESG) investing grows to rise, spiking to more than $240 billion in and renewable generation expands, oil and gas 2020, $98 billion of which was in the second companies are expected to face more scrutiny quarter alone.
Load more

Recommended publications
  • 2015 Annual Report Mission
    2015 annual report Mission Our mission is to facilitate innovation, collaborative research and technology development, demonstration and deployment for a responsible Canadian hydrocarbon energy industry. 2 Vision Our vision is to help Canada become a global hydrocarbon energy technology leader. PTAC Technology Areas Manage Environmental Impacts • Air Quality • Alternative Energy Improve Oil and Gas Recovery • Ecological • CO2 Enhanced Hydrocarbon Recovery • Emission Reduction / Eco-Efficiency • Coalbed Methane, Shale Gas, Tight Gas, Gas Hydrates, • Energy Efficiency and other Unconventional Gas • Resource Access • Conventional Heavy Oil, Cold Heavy Oil Production with • Soil and Groundwater Sands • Water • Conventional Oil and Gas Recovery • Wellsite Abandonment • Development of Arctic Resources • Development of Remote Resources Additional PTAC Technical Areas • Enhanced Heavy Oil Recovery • e-Business • Enhanced Oil and Gas Recovery • Genomics • Enhanced Oil Sands Recovery • Geomatics • Emerging Technologies to Recover Oil Sands from Deposits • Geosciences with Existing Zero Recovery • Health and Safety • Tight Oil, Shale Oil, and other Unconventional Oil • Instrumentation/Measurement • Nano Technology Reduce Capital, Operating, and G&A Costs • Operations • Automation • Photonics • Capital Cost Optimization • Production Engineering • Cost Reduction Using Emerging Drilling and Completion • Remote Sensing Technologies • Reservoir Engineering • Cost Reduction Using Surface Facilities • Security • Eco-Efficiency and Energy Efficiencyechnologies
    [Show full text]
  • Shell Midstream Partners / Crestwood Permian Basin Holdings / Crestwood Permian Basin
    Disclaimer : The Competition DG makes the information provided by the notifying parties in section 1.2 of Form CO available to the public in order to increase transparency. This information has been prepared by the notifying parties under their sole responsibility, and its content in no way prejudges the view the Commission may take of the planned operation. Nor can the Commission be held responsible for any incorrect or misleading information contained therein. M.8638 - SHELL MIDSTREAM PARTNERS / CRESTWOOD PERMIAN BASIN HOLDINGS / CRESTWOOD PERMIAN BASIN SECTION 1.2 Description of the concentration The Commission has received notification of a proposed concentration pursuant to article 4 of Council Regulation (EC) No 139/2004 (the “EUMR”). On 8 September 2017, Shell Midstream Partners, L.P. (a solely-controlled subsidiary of Royal Dutch Shell plc (“Shell”)) notified its intention to acquire indirect joint control of Crestwood Permian Basin LLC along with current owner Crestwood Permian Basin Holdings LLC (itself a joint venture between First Reserve Management L.P. and Crestwood Equity Partners LP.) within the meaning of Article 3(1)(b) of the EUMR. The areas of activities of the undertakings concerned by the notified concentration are as follows: − Shell – a global group of energy and petrochemical companies; − Crestwood Permian Basin Holdings – a joint venture between First Reserve and Crestwood, and currently the sole owner of Crestwood Permian Basin; − Crestwood Permian Basin – owns and operates a natural gas gathering system in the Permian Basin, the largest petroleum-producing basin in the United States. Commission européenne, DG COMP MERGER REGISTRY, 1049 Bruxelles, BELGIQUE Europese Commissie, DG COMP MERGER REGISTRY, 1049 Brussel, BELGIË Tel: +32 229-91111.
    [Show full text]
  • Q3 2020 Husky-MDA
    MANAGEMENT’S DISCUSSION AND ANALYSIS October 29, 2020 Table of Contents 1.0 Summary of Quarterly Results 2.0 Business Overview 3.0 Business Environment 4.0 Results of Operations 5.0 Risk Management and Financial Risks 6.0 Liquidity and Capital Resources 7.0 Critical Accounting Estimates and Key Judgments 8.0 Recent Accounting Standards and Changes in Accounting Policies 9.0 Outstanding Share Data 10.0 Reader Advisories 1.0 Summary of Quarterly Results Three months ended Quarterly Summary Sep. 30 Jun. 30 Mar. 31 Dec. 31 Sept. 30 Jun. 30 Mar. 31 Dec. 31 ($ millions, except where indicated) 2020 2020 2020 2019 2019 2019 2019 2018(1) Production (mboe/day) 258.4 246.5 298.9 311.3 294.8 268.4 285.2 304.3 Throughput (mbbls/day) 300.1 281.3 307.8 203.4 356.4 340.3 333.6 286.9 Gross revenues and Marketing and other(1) 3,379 2,408 4,113 4,921 5,373 5,321 4,610 5,042 Net earnings (loss) (7,081) (304) (1,705) (2,341) 273 370 328 216 Per share – Basic (7.05) (0.31) (1.71) (2.34) 0.26 0.36 0.32 0.21 Per share – Diluted (7.06) (0.31) (1.71) (2.34) 0.25 0.36 0.31 0.16 Cash flow – operating activities 79 (10) 355 866 800 760 545 1,313 Funds from operations(2) 148 18 25 469 1,021 802 959 583 Per share – Basic 0.15 0.02 0.02 0.47 1.02 0.80 0.95 0.58 Per share – Diluted 0.15 0.02 0.02 0.47 1.02 0.80 0.95 0.58 (1) Gross revenues and Marketing and other results reported for 2019 have been recast to reflect a change in reclassification of intersegment sales eliminations and a change in presentation of the Integrated Corridor and Offshore business units.
    [Show full text]
  • Suncor Q3 2020 Investor Relations Supplemental Information Package
    SUNCOR ENERGY Investor Information SUPPLEMENTAL Published October 28, 2020 SUNCOR ENERGY Table of Contents 1. Energy Sources 2. Processing, Infrastructure & Logistics 3. Consumer Channels 4. Sustainability 5. Technology Development 6. Integrated Model Calculation 7. Glossary SUNCOR ENERGY 2 SUNCOR ENERGY EnergyAppendix Sources 3 202003- 038 Oil Sands Energy Sources *All values net to Suncor In Situ Mining Firebag Base Plant 215,000 bpd capacity 350,000 bpd capacity Suncor WI 100% Suncor WI 100% 2,603 mmbbls 2P reserves1 1,350 mmbbls 2P reserves1 Note: Millennium and North Steepank Mines do not supply full 350,000 bpd of capacity as significant in-situ volumes are sent through Base Plant MacKay River Syncrude 38,000 bpd capacity Syncrude operated Suncor WI 100% 205,600 bpd net coking capacity 501 mmbbls 2P reserves1 Suncor WI 58.74% 1,217 mmbbls 2P reserves1 Future opportunities Fort Hills ES-SAGD Firebag Expansion Suncor operated Lewis (SU WI 100%) 105,000 bpd net capacity Meadow Creek (SU WI 75%) Suncor WI 54.11% 1,365 mmbbls 2P reserves1 First oil achieved in January 2018 SUNCOR ENERGY 1 See Slide Notes and Advisories. 4 1 Regional synergy opportunities for existing assets Crude logistics Upgrader feedstock optionality from multiple oil sands assets Crude feedstock optionality for Edmonton refinery Supply chain Sparing, warehousing & supply chain management Consolidation of regional contracts (lodging, busing, flights, etc.) Operational optimizations Unplanned outage impact mitigations In Situ Turnaround planning optimization Process
    [Show full text]
  • BP Midstream Partners LP (Exact Name of Registrant As Specified in Its Charter) Delaware 001-38260 82-1646447 (State Or Other Jurisdiction of (Commission (I.R.S
    UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (date of earliest event reported): February 25, 2021 BP Midstream Partners LP (Exact name of registrant as specified in its charter) Delaware 001-38260 82-1646447 (State or other jurisdiction of (Commission (I.R.S. Employer incorporation or organization) file number) Identification No.) 501 Westlake Park Boulevard, Houston, Texas 77079 (Address of principal executive offices) (Zip Code) Registrant’s telephone number, including area code: (281) 366-2000 Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2): Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) ☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) ☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) ☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) ☐ Securities registered pursuant to Section 12(b) of the Act: Title of each class Trading Symbol Name of each exchange on which registered Common Units, Representing Limited Partner Interests BPMP New York Stock Exchange Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
    [Show full text]
  • Public Information Summary Aleph Midstream S.A. 9000093267
    Public Information Summary Aleph Midstream S.A. Argentine Republic Name of Borrower Aleph Midstream S.A. Project Description Develop and expand existing oil and gas transportation and processing facilities in order to provide independent transportation and processing services. These services include gathering, processing, and transportation of shale oil and associated gas production from concessions owned by Vista Oil & Gas Argentina S.A.U. in Argentina’s Vaca Muerta basin (the “Project”). Proposed OPIC USD 150.0 million for up to 10 years Loan/Guaranty Total Project Costs USD 351.3 million U.S. Sponsor Riverstone/Gower Management Co. Holdings LP Foreign Sponsor Vista Oil & Gas S.A.B. de C.V. Policy Review U.S. Economic Impact The Project is not expected to have a negative impact on the U.S. economy or employment. U.S. procurement associated with the Project is expected to have a de minimis positive impact on U.S. employment. The Project is expected to have a positive five-year U.S. balance of trade impact. Developmental Effects This Project is expected to have a highly developmental impact on Argentina by providing wellhead to pipeline processing services for companies drilling oil and gas in the Vaca Muerta reserves in the Neuquén Basin in northern Patagonia. This Project is integral to the success of the development of Vaca Muerta by providing the critical infrastructure necessary to attract additional investment. Development of the shale resources in Vaca Muerta is expected to increase export earnings from the sale of oil and improve the country’s energy independence by reducing the country’s reliance on imported fuel.
    [Show full text]
  • Financing Options in the Oil and Gas Industry, Practical Law UK Practice Note
    Financing options in the oil and gas industry, Practical Law UK Practice Note... Financing options in the oil and gas industry by Suzanne Szczetnikowicz and John Dewar, Milbank, Tweed, Hadley & McCloy LLP and Practical Law Finance. Practice notes | Maintained | United Kingdom Scope of this note Industry overview Upstream What is an upstream oil and gas project? Typical equity structure Relationship with the state Key commercial contracts in an upstream project Specific risks in financing an upstream project Sources of financing in the upstream sector Midstream, downstream and integrated projects Typical equity structures What is a midstream oil and gas project? Specific risks in financing a midstream project What is a downstream oil and gas project? Specific risks in financing a downstream project Integrated projects Sources of financing in midstream, downstream and integrated projects Multi-sourced project finance Shareholder funding Equity bridge financing Additional sources of financing Other financing considerations for the oil and gas sectors Expansion financings Hedging Refinancing Current market trends A note on the structures and financing options and risks typically associated with the oil and gas industry. © 2018 Thomson Reuters. All rights reserved. 1 Financing options in the oil and gas industry, Practical Law UK Practice Note... Scope of this note This note considers the structures, financing options and risks typically associated with the oil and gas industry. It is written from the perspective of a lawyer seeking to structure a project that is capable of being financed and also addresses the aspects of funding various components of the industry from exploration and extraction to refining, processing, storage and transportation.
    [Show full text]
  • Pride Drillships Awarded Contracts by BP, Petrobras
    D EPARTMENTS DRILLING & COMPLETION N EWS BP makes 15th discovery in ultra-deepwater Angola block Rowan jackup moving SONANGOL AND BP have announced west of Luanda, and reached 5,678 m TVD to Middle East to drill the Portia oil discovery in ultra-deepwater below sea level. This is the fourth discovery offshore Saudi Arabia Block 31, offshore Angola. Portia is the 15th in Block 31 where the exploration well has discovery that BP has drilled in Block 31. been drilled through salt to access the oil- ROWAN COMPANIES ’ Bob The well is approximately 7 km north of the bearing sandstone reservoir beneath. W ell Keller jackup has been awarded a Titania discovery . Portia was drilled in a test results confirmed the capacity of the three-year drilling contract, which water depth of 2,012 m, some 386 km north- reservoir to flow in excess of 5,000 bbl/day . includes an option for a fourth year, for work offshore Saudi Arabia. The Bob Keller recently concluded work Pride drillships in the Gulf of Mexico and is en route to the Middle East. It is expected awarded contracts to commence drilling operations during Q2 2008. Rowan re-entered by BP, Petrobras the Middle East market two years ago after a 25-year absence. This PRIDE INTERNATIONAL HAS contract expands its presence in the announced two multi-year contracts for area to nine jackups. two ultra-deepwater drillships. First, a five-year contract with a BP subsidiary Rowan also has announced a multi- will allow Pride to expand its deepwater well contract with McMoRan Oil & drilling operations and geographic reach Gas Corp that includes re-entering in deepwater drilling basins to the US the Blackbeard Prospect.
    [Show full text]
  • 2021 RYSTAD ENERGY TRANSITION REPORT, HYDROGEN EDITION Be Among the First to Access Rystad Energy’S Hydrogencube
    RYSTAD ENERGY TRANSITION REPORT FEBRUARY 2021 FREE EDITION HYDROGEN SOCIETY RYSTAD ENERGY TRANSITION REPORT, HYDROGEN EDITION The Rystad Energy Transition Report The Rystad Energy Transition Report series leverages the full breadth of our data expertise to explore what a future decarbonized energy system may look like through three conceptual societies. Each society serves as a model primarily dependent upon one of the technologies currently competing to become dominant on the pathway to net-zero – carbon capture and storage (CCS), hydrogen and batteries. Our hydrogen society illuminates the tremendous decarbonizing potential of H2 across four key demand segments: transportation, industry, power & buildings, and energy. In the following free edition, we discuss some key developments and highlights. In the full report, we dive deeply into the topic, covering key end-use applications for hydrogen, the demand forecast up to 2050 in addition to hydrogen supply and its competitiveness. To gain access to the complete report, we encourage you to contact us at your earliest convenience. We look forward to sharing our Battery Report with you in the next month. ENERGY TRANSITION REPORT 2 HYDROGEN SOCIETY FEBRUARY 2021 EXECUTIVE SUMMARY Hydrogen – set to quintuple by 2050 Our energy transition story continues this times as much as H2 production today. month as we explore the decarbonizing Such a massive demand increase would potential of hydrogen in our Hydrogen require a ramp up of supply from both blue Society. Hydrogen has received much and green hydrogen. Green H2 has the attention in recent years as a potentially deepest decarbonizing potential, but blue carbon-free commodity with many of the H2 can utilize existing production pathways same advantages of traditional fossil fuel; it and can achieve near-zero hydrogen when offers good energy density and can be paired with supplementary carbon capture applied to a variety of sectors.
    [Show full text]
  • Midstream Oil & Gas Equipment
    INDUSTRY MARKET RESEARCH FOR BUSINESS LEADERS, STRATEGISTS, DECISION MAKERS Midstream Oil & Gas Equipment US Industry Study with Forecasts for 2019 & 2024 Study #3376 | February 2016 | $5400 Demand for equipment used in midstream oil and gas treating and processing equipment and compressors used applications in the US is expected to decline through 2019 in pipeline and other applications -- will continue to be as a low oil and gas price environment limits production strong by historical standards, although it is not expected growth and US midstream infrastructure becomes better to return to 2014 levels in the near future. The rapid adapted to the recent shifts in energy production within growth of gas production in the Marcellus and Utica shale the country. Spending on equipment for use in crude by plays of the Appalachian Basin has necessitated a high rail and gas processing plants will both fall from elevated level of gas processing and transportation infrastructure 2014 levels, but pipeline construction and liquefied natural investment to accommodate changing regional gas gas (LNG) activity will continue to support a high level of transportation needs; by 2019 the need for ongoing equipment demand through the forecast period. construction will begin to ebb. Eventual upstream recovery to Major LNG export facilities expected boost midstream infrastructure Although the prospects for LNG export facilities are Although the market for midstream equipment is expect- clouded by short term price uncertainty, market funda- ed to return to healthy levels of demand in 2019, signifi- mentals will drive the eventual construction of a number cant declines are expected in 2016, driven by a dramatic of facilities in coming years -- several of which are likely to fall in well completions in 2015 and 2016.
    [Show full text]
  • Covid-19 Report 03—Rystad Energy
    COVID-19 REPORT 3RD EDITION GLOBAL OUTBREAK OVERVIEW AND ITS IMPACT ON THE ENERGY SECTOR 24 MARCH 2020 PUBLIC VERSION Table of Contents Executive introduction Outbreak status and outlook Impact on global oil demand Impact on the oil and gas industry Impact on the renewable energy industry Methodology 2 Executive introduction Summary In this edition of Rystad Energy’s Covid-19 Report, As discussed in the previous report, we expect we now use an updated model which leverages data governments will use a strategy aimed at “managing from 196 nations through 23 March. As such, our the virus” through various levels of quarantines in order simulations now show the estimated true number of to avoid exceeding Intensive Care Unit (ICU) capacity. people infected globally. The calibration gives the With the implementation of these social distancing highest priority to the “hardest data” which is fatalities, measures, we expect governments will aim to lengthen weighing ICU bed usage as the second key metric and the spread and impact of the virus over 12 to 18 months actual reported cases as the third key metric. in most countries. Oil demand will see a larger drop than ever before in the history of oil. These factors allow us to estimate the true number of infected cases at the regional and country level, as well Read more about the model’s inherent assumptions in as the share of cases reported. the Methodology section from slide 37. Overall figures currently show that 2.4 million people were infected globally as of 5 March, explaining the 16,500 confirmed fatalities witnessed as of 23 March (0.63%).
    [Show full text]
  • “Pertamina: the Backbone of National Energy Security”
    Pertamina Energy Outlook 2015 “Pertamina: the backbone of national energy security” By : Ahmad Bambang Director, PT Pertamina (Persero) Jakarta, 3-4 December 2014 PT Pertamina (Persero) Jln. Medan Merdeka Timur No.1A Jakarta 10110 CONFIDENTIAL AND PROPRIETARY Telp (62-21) 381 5111 Fax (62-21) 384 6865 Any use of this material without specific permission of Pertamina is strictly prohibited http://www.pertamina.com Agenda 1 Pertamina’s Energy Policy & Strategy 2 Pertamina’s Business Overview 3 Upstream Business 4 Midstream Business 5 Downstream Business 6 New & Renewable Energy Business Page 2 Agenda 1 Pertamina’s Energy Policy & Strategy 2 Pertamina’s Business Overview 3 Upstream Business 4 Midstream Business 5 Downstream Business 6 New & Renewable Energy Business Page 3 Pertamina’s Corporate Vision, Mission and Values Challenge to synchronize national energy security and energy commercialization Vision To be a world class national energy company To carry out integrated core business in oil, gas, & renewables Mission based on strong commercial principles Values Clean, Competitive, Confident, Customer Focus, Commercial, Capable Page 4 Full production Banyu Urip di thn 2015. Produksi PEPC pada RJPP 2012-2016 lebih tinggi dibandingkan RJPP 2011-2015 karena percepatan produksi gas JTB, Cendana, dan Kedung Keris. Pertamina’s Aspiration is To Be a Fortune 100 “Asian Energy Champion” by 2025 Aligned with national mission “Asian Energy Champion” ‘Fortune 100’ position (Revenue ~$200b USD, EBITDA ~$40b USD) Leadership in existing core Growth in new businesses Increase efficiency in PSO E&P PetChem Oil products Leading Asian NOC: 2.2 Largest petchem player in Maintain position of strength mmboepd production with Indonesia with 35% market with 60% market share; new domestic leadership (50%) share, high margins through service model through “New and int’l foot-print (~30% of integration pasti pas” and NFR own prodn.) Midstream gas Coal LPG Integrated gas champion with Leader in alternate technology Optimize supply chain and trans-Sumatera and trans- (e.g.
    [Show full text]