I had a good conversation with my old friend John Westwood (Douglas-Westwood) about the reaction of the industry to the financial crisis and falling oil and gas prices. John had just sent a note that he was opening an office on Wall Street in New York, a rather gutsy move if the doom and gloom sector is to be believed. The day before, I had received Douglas-Westwood's thoughts on the current situation in a document entitled "Turmoil in the Credit Markets: The Impact on the Oil & Gas Sector." You can find it at www.dw-1.com. John and his company are long-term thinkers - hence the new office in New York. Their conclusions in the recent white paper are: a short-term outlook that includes demand destruction, high levels of uncertainty and budgets hit by a lack of confidence, but large order backlogs that should carry a number of service/equipment companies through; a mid-term outlook that includes oil prices still above most hurdles (around $80/bbl), slow downs in exploration rather than ongoing field developments, and reduced costs of inputs such as steel; and a long-term outlook that includes a supply situation that is unchanged coupled with another sharp "supply crunch" when the global economy recovers. To quote the final conclusion of the report, "In the longer-term, our views are unchanged and global oil supply limits are likely to be tested again during the next decade." So, if you are in this for the long-haul - and I can't imagine that many of you are not - now might be the time to make a strategic investment or two, like John.
The Jacked Up Drilling Market
2023-03-14 - After a nearly five year downturn, the subsea drilling market is on the upswing, with jackup rigs making up the majority of the global fleet.
Rig Providers Focus on Advancements to Keep Up with E&P’s Needs
2023-03-27 - With the offshore drilling market on a positive upswing, rig companies are trying to meet demand while adding the latest bells and whistles to their fleets.
E&P Highlights: March 20, 2023
2023-03-20 - Here’s a roundup of the latest E&P headlines, including a Black Sea discovery and new contract awards in the upstream oil and gas industry.
Oil and Gas Have Room to Grow in Canada, But Potential Pitfalls Ahead
2023-02-09 - Regulatory issues, inflation and takeaway capacity could hold up projects, while Bay du Nord could breathe new life into Canada’s struggling offshore sector.
Tech Over Trial-and-Error: Improving Near-Well Bore Completions
2023-01-27 - Drill2Frac’s FlowFX solution helps fine-tune completion designs by modeling parameters such as the number of perf clusters and length of stages.