Energy Watchblog: Big Data

Private equity sees growing investment opportunities in oil and gas

In the post-financial crisis era, private equity firms are  once again looking for the most promising opportunities, and oil and gas  is proving to be fertile ground, according to a recent industry survey.<br /><br />Nearly two-thirds of global private equity executives responding to a  survey said they plan to actively raise funds aimed at specific oil and  gas subsectors next year, seeking to benefit from an industry ripe with  opportunity and hungry for capital. The survey results were released  Tuesday by EY, the international accounting and consulting firm.<br /><br /><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgeSuU-HiMjaRPnjx2xfTSkYQ73NNlHHikJS__ajfVBBu8Z9z7PJH2domFn2TH6DNwwG2x5HDr2rzjkyT1b5d5B5uLqwIDPlM3ANqQvY_eA5uMKdDpEpDe0He-UlJ6XDI8o3wX17nSdfuLw/s1600/6551534889_9c8ae52997_z-306x306.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgeSuU-HiMjaRPnjx2xfTSkYQ73NNlHHikJS__ajfVBBu8Z9z7PJH2domFn2TH6DNwwG2x5HDr2rzjkyT1b5d5B5uLqwIDPlM3ANqQvY_eA5uMKdDpEpDe0He-UlJ6XDI8o3wX17nSdfuLw/s1600/6551534889_9c8ae52997_z-306x306.jpg" /></a></div>The oil and gas industry is capital intensive, with projects that run  into the billions of dollars, making it an attractive investment for  private equity firms, EY noted.<br /><span style="font-size: 13px; line-height: 19px;">Mergermarket, a  national survey firm, conducted the survey on behalf of EY, interviewing  100 private equity leaders on the relationship between private equity  and the oil and gas industry.</span><br />“The easy or cheap barrels have been produced,” EY wrote in the  report. “There are now more players going after the more difficult areas  of oil production, creating opportunities for PE firms with different  risk appetites.”<br /><br /><br /><b>Energy executives: <a href="http://fuelfix.com/blog/2013/12/03/access-to-capital-funds-will-improve-in-2014-energy-execs-say/?cmpid=eefl" target="_blank" title="Access to capital will improve in 2014, energy execs say">Access to capital will improve in 2014</a></b><br />The survey provides an encouraging view of investment, <b><a href="http://fuelfix.com/blog/2013/07/29/deloitte-ma-energy-deals-down-30-percent-from-2012/?cmpid=eefl" target="_blank">even as deal making in the sector has slowed down</a></b>, with energy executives saying they want to focus on more efficient operations rather than expanding their reach.<br /><br />But private equity is bringing more than money to the table. The  firms increasingly are offering their expertise in oil and gas, combined  with financial discipline strategies, to increase returns, EY said in  the report.<br /><br />Nearly two-thirds of private equity leaders believe that the main way  they add value to oil and gas companies is by providing access to  growth capital. But nearly 20 percent noted that they increasingly are  allowing companies to expand geographically. And one in ten felt that  the operational expertise provided by private equity also added value.<br />Private equity firms continue to see North America as the most  attractive market for oil and gas investment, but expect investments in  Latin America and in Asia to increase in the next two years, especially  in China and Brazil.<br /><br />“We are seeing an influx of capital investment into the emerging  markets,” said Andy Brogan, EY’s Global Oil and Gas Transaction Advisory  Services Leader, in a written statement, explaining that the risk  profiles of emerging markets typically varies with that of developed  countries, allowing for investment diversification. “Companies are  exercising caution, but optimism around the potential returns from  acquisitions remains high.”

Private equity sees growing investment opportunities in oil and gas

In the post-financial crisis era, private equity firms are once again looking for the most promising opportunities, and oil and gas is pro...

GE to build technology hub in Oklahoma City - Oil & Gas Financial Journal

<div class="PromoBoxHeadLeft" style="background-color: white; border: 0px; color: #37302b; font-family: Arial, Helvetica, sans-serif; font-size: 12px; height: auto; margin: 0px; outline: 0px; padding: 0px;"><div class="PromoBoxHeadRight" style="background-color: transparent; border: 0px; font-family: inherit; font-style: inherit; font-weight: inherit; height: auto; margin: 0px; outline: 0px; padding: 0px;"><div class="separator" style="clear: both; text-align: center;"><br /></div><br /><div class="separator" style="clear: both; text-align: left;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjCNhKT65Xxnb96bYAuM4H4Th7UBemYsWWdbIAkP7c4Ur2-p9f5QAGyrx507gHSMCw5S41ySs1T1pdYlemaarIbg62nCl3luPFECt8kGrLsEZB_fKqqqelaqYDpEb33E8zEmrE2d06hykbx/s1600/big-data2.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="145" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjCNhKT65Xxnb96bYAuM4H4Th7UBemYsWWdbIAkP7c4Ur2-p9f5QAGyrx507gHSMCw5S41ySs1T1pdYlemaarIbg62nCl3luPFECt8kGrLsEZB_fKqqqelaqYDpEb33E8zEmrE2d06hykbx/s320/big-data2.jpg" width="320" /></a></div><br /><div class="separator" style="clear: both; text-align: center;"><br /></div><h1 class="compTitle" itemprop="headline" style="background-color: transparent; border: 0px; color: black; font-size: 20px; font-style: inherit; height: auto; line-height: 25px; margin-bottom: 0px !important; margin-left: 0px; margin-right: 0px !important; margin-top: 0px !important; outline: 0px; padding: 5px 0px;">GE to build technology hub in Oklahoma City</h1></div></div><div class="compBody" style="background-color: white; border: 0px; color: #37302b; font-family: Arial, Helvetica, sans-serif; font-size: 12px; margin: 0px; outline: 0px; padding: 5px 0px;"><div class="articlepublicationdate" itemprop="datePublished" style="border: 0px; font-family: inherit; font-style: inherit; font-weight: inherit; margin: 0px; outline: 0px; padding: 0px;"><span class="articlepublicationdatecnt" style="border: 0px; font-family: inherit; font-style: inherit; font-weight: inherit; margin: 0px; outline: 0px; padding: 0px;">December 6, 2013</span></div><div class="articlebyline" style="border: 0px; font-family: inherit; font-style: inherit; font-weight: inherit; margin: 0px; outline: 0px; padding: 0px;"><span class="articlebylinecnt" style="border: 0px; font-family: inherit; font-style: inherit; font-weight: inherit; margin: 0px; outline: 0px; padding: 0px;">GE</span></div><div class="article-content-wrapper" itemprop="articleBody" style="border: 0px; font-family: inherit; font-style: inherit; font-weight: inherit; margin: 0px; outline: 0px; padding: 0px;"><div class="clicktoenlargeimage parbase image headerimage" style="border: 0px; font-family: inherit; font-style: inherit; font-weight: inherit; margin: 0px 0px 20px; outline: 0px; overflow: hidden; padding: 0px;"><img alt="" class="cq-dd-image cq-image-placeholder" src="http://www.ogfj.com/etc/designs/default/0.gif" style="border: 0px; display: block; font-family: inherit; font-style: inherit; font-weight: inherit; margin: 0px; outline: 0px; padding: 0px;" title="" /></div><div id="ContentBody" style="border: 0px; font-family: inherit; font-style: inherit; font-weight: inherit; margin: 0px; outline: 0px; padding: 0px;"><div class="gigya-article-share-bar-right" id="gigya-article-share-bar" style="border: 0px; float: right; font-family: inherit; font-style: inherit; font-weight: inherit; margin: 0px; outline: 0px; padding: 0px;"><div class="sharebar gigyashare" style="border: 0px; font-family: inherit; font-style: inherit; font-weight: inherit; margin: 0px; outline: 0px; padding: 0px;"></div></div><div style="border: 0px; font-family: inherit; font-style: inherit; font-weight: inherit; outline: 0px; padding: 10px 0px;"><a adhocenable="false" href="http://www.ogfj.com/articles/2013/04/ge-accelerates-artificial-lift-business-with-lufkin-acquisition-.html" style="border: 0px; color: #1370ac; font-style: inherit; font-weight: inherit; margin: 0px; outline: 0px; padding: 0px; text-decoration: none;">GE</a> has selected downtown Oklahoma City, Oklahoma, for its first-ever global research center dedicated to oil and gas technology. </div><div style="border: 0px; font-family: inherit; font-style: inherit; font-weight: inherit; outline: 0px; padding: 10px 0px;">The center will focus on accelerating mid- to later-stage oil and gas technologies developed in GE’s global research labs, including production systems, well construction, water use optimization, carbon-dioxide solutions, and energy systems<b>.</b> </div><div style="border: 0px; font-family: inherit; font-style: inherit; font-weight: inherit; outline: 0px; padding: 10px 0px;">Construction on the 95,000-sq-ft (8,826-sq-m) facility will begin in the spring of 2014, with the building expected to be completed and operational in 2015.</div></div></div></div><br /><a href="http://www.ogfj.com/articles/2013/12/ge-to-build-technology-hub-in-oklahoma-city.html">GE to build technology hub in Oklahoma City - Oil & Gas Financial Journal</a>

GE to build technology hub in Oklahoma City - Oil & Gas Financial Journal

GE to build technology hub in Oklahoma City December 6, 2013 GE GE has selected downtown Oklahoma City, Oklahoma, for its first-ever global...

Oil Boom 2.0 – An American Dream Updated with Christof Rühl

<div id="content" itemscope="" itemtype="http://schema.org/Article" style="background-color: #e9e9e9; border: 0px; clear: both; float: left; font-family: Helvetica, Arial, sans-serif; font-size: 15.555556297302246px; line-height: 17.77777862548828px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline; width: 646px;"><div id="article-5767888004492324951" style="border: 0px; font-family: inherit; font-size: 15.555556297302246px; font-style: inherit; font-variant: inherit; font-weight: inherit; line-height: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><div class="module-box  new-social-gestures" id="article-container" style="-webkit-box-shadow: rgba(0, 0, 0, 0.247059) 0px 1px 2px; background-color: white; border: 0px; box-shadow: rgba(0, 0, 0, 0.247059) 0px 1px 2px; font-family: inherit; font-size: 15.555556297302246px; font-style: inherit; font-variant: inherit; font-weight: inherit; line-height: inherit; margin: 0px 0px 12px; outline: 0px; padding: 0px; vertical-align: baseline;"><div id="article-container" style="border: 0px; font-family: inherit; font-size: 15.555556297302246px; font-style: inherit; font-variant: inherit; font-weight: inherit; line-height: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><div id="article-body" style="border-top-color: rgb(230, 230, 230); border-top-style: solid; border-width: 1px 0px 0px; clear: both; color: #333333; font-family: inherit; font-size: 15px; font-style: inherit; font-variant: inherit; line-height: 20px; margin: 0px; outline: 0px; overflow: hidden; padding: 10px 20px; vertical-align: baseline;"><div style="border: 0px; font-family: inherit; font-size: 15.555556297302246px; font-style: inherit; font-variant: inherit; font-weight: inherit; line-height: inherit; margin-bottom: 1em; margin-top: 1em; outline: 0px; padding: 0px; vertical-align: baseline;"></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgaoTKnINZhnlTkRmolpKBwBbmpZdOskykNyT6H91YHcrMfRIx5pcWAWHp18qS8MXvLkr8TMChkPlhuuwS44XuB_8R-JDded0zGPbIQDAsTg0FSmWSCxEokRkMxQAWswHmdbwz6fCbbKy4a/s1600/1c7f78e.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgaoTKnINZhnlTkRmolpKBwBbmpZdOskykNyT6H91YHcrMfRIx5pcWAWHp18qS8MXvLkr8TMChkPlhuuwS44XuB_8R-JDded0zGPbIQDAsTg0FSmWSCxEokRkMxQAWswHmdbwz6fCbbKy4a/s1600/1c7f78e.jpg" /></a></div><div style="border: 0px; font-family: inherit; font-size: 15.555556297302246px; font-style: inherit; font-variant: inherit; font-weight: inherit; line-height: inherit; margin-bottom: 1em; margin-top: 1em; outline: 0px; padding: 0px; vertical-align: baseline;"><br /></div><div style="border: 0px; font-family: inherit; font-size: 15.555556297302246px; font-style: inherit; font-variant: inherit; font-weight: inherit; line-height: inherit; margin-bottom: 1em; margin-top: 1em; outline: 0px; padding: 0px; vertical-align: baseline;">The impact of the US shale “revolution” has people all around the world scratching their heads – over what it means: Is North America really on the road to self-sufficiency? Of oil, of gas, or of all fuels? And increasingly, people wonder about the implications for their own regions: Are there similar resources? What would it take to get at them?</div><div style="border: 0px; font-family: inherit; font-size: 15.555556297302246px; font-style: inherit; font-variant: inherit; font-weight: inherit; line-height: inherit; margin-bottom: 1em; margin-top: 1em; outline: 0px; padding: 0px; vertical-align: baseline;">By the numbers, this already <i style="border: 0px; font-family: inherit; font-size: 15.555556297302246px; font-variant: inherit; font-weight: inherit; line-height: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">IS</i> a big development. Last year, the US witnessed the world’s largest increase in oil as well as gas production. Not only did oil production expand faster than in any other country, last year also saw the biggest oil production increase in the history of the US – a country, mind you, which has produced oil since 1859.</div><div style="border: 0px; font-family: inherit; font-size: 15.555556297302246px; font-style: inherit; font-variant: inherit; font-weight: inherit; line-height: inherit; margin-bottom: 1em; margin-top: 1em; outline: 0px; padding: 0px; vertical-align: baseline;">So far this year, production has grown even stronger.</div><div style="border: 0px; font-family: inherit; font-size: 15.555556297302246px; font-style: inherit; font-variant: inherit; font-weight: inherit; line-height: inherit; margin-bottom: 1em; margin-top: 1em; outline: 0px; padding: 0px; vertical-align: baseline;">The reason is tight oil - oil generated with the same technologies that gave us shale gas.</div><div style="border: 0px; font-family: inherit; font-size: 15.555556297302246px; font-style: inherit; font-variant: inherit; font-weight: inherit; line-height: inherit; margin-bottom: 1em; margin-top: 1em; outline: 0px; padding: 0px; vertical-align: baseline;"><b style="border: 0px; font-family: inherit; font-size: 15.555556297302246px; font-style: inherit; font-variant: inherit; line-height: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">Production</b></div><div style="border: 0px; font-family: inherit; font-size: 15.555556297302246px; font-style: inherit; font-variant: inherit; font-weight: inherit; line-height: inherit; margin-bottom: 1em; margin-top: 1em; outline: 0px; padding: 0px; vertical-align: baseline;">US production last year grew by over 1 million barrels per day, 80% of which came from North Dakota and Texas, currently home to the country’s most prolific tight oil formations. North Dakota surpassed Alaska to become the second largest producing state and in Texas, the number one, output has doubled over the past five years.</div><div style="border: 0px; font-family: inherit; font-size: 15.555556297302246px; font-style: inherit; font-variant: inherit; font-weight: inherit; line-height: inherit; margin-bottom: 1em; margin-top: 1em; outline: 0px; padding: 0px; vertical-align: baseline;">Meanwhile, the US is well on its way to replace Saudi Arabia as the world’s largest oil producer – the switch may take place as early as next year.</div><div style="border: 0px; font-family: inherit; font-size: 15.555556297302246px; font-style: inherit; font-variant: inherit; font-weight: inherit; line-height: inherit; margin-bottom: 1em; margin-top: 1em; outline: 0px; padding: 0px; vertical-align: baseline;">How did this happen?</div><div style="border: 0px; font-family: inherit; font-size: 15.555556297302246px; font-style: inherit; font-variant: inherit; font-weight: inherit; line-height: inherit; margin-bottom: 1em; margin-top: 1em; outline: 0px; padding: 0px; vertical-align: baseline;">Parts of the story are well known:</div><ul style="border: 0px; font-family: inherit; font-size: 15.555556297302246px; font-style: inherit; font-variant: inherit; font-weight: inherit; line-height: inherit; list-style-image: initial; list-style-position: initial; margin: 1em 0px; outline: 0px; padding: 0px 0px 0px 3em; vertical-align: baseline;"><li style="border: 0px; font-family: inherit; font-size: 15.555556297302246px; font-style: inherit; font-variant: inherit; font-weight: inherit; line-height: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">The existence of a massive resource base.</li><li style="border: 0px; font-family: inherit; font-size: 15.555556297302246px; font-style: inherit; font-variant: inherit; font-weight: inherit; line-height: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">A decade of high and rising prices for both oil and gas.</li><li style="border: 0px; font-family: inherit; font-size: 15.555556297302246px; font-style: inherit; font-variant: inherit; font-weight: inherit; line-height: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">Most importantly, a competitive environment, allowing entrepreneurs and their companies to take a gamble to connect the two.</li></ul><div style="border: 0px; font-family: inherit; font-size: 15.555556297302246px; font-style: inherit; font-variant: inherit; font-weight: inherit; line-height: inherit; margin-bottom: 1em; margin-top: 1em; outline: 0px; padding: 0px; vertical-align: baseline;">Everyone can invest in oil and gas in the US or Canada – and many did. It was actually mostly small or medium sized firms which tried to develop the technologies to make it possible to connect high prices and known shale resources – first for gas, and then for oil. Many failed and lost their shirt in the process. A few succeeded. But the big ones, the BP’s or Exxon’s of this world, only came in once the basic technologies (such as horizontal drilling and hydraulic fracturing) had been developed – to buy them, and to apply them elsewhere.</div><div style="border: 0px; font-family: inherit; font-size: 15.555556297302246px; font-style: inherit; font-variant: inherit; font-weight: inherit; line-height: inherit; margin-bottom: 1em; margin-top: 1em; outline: 0px; padding: 0px; vertical-align: baseline;"><b style="border: 0px; font-family: inherit; font-size: 15.555556297302246px; font-style: inherit; font-variant: inherit; line-height: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">Economics</b></div><div style="border: 0px; font-family: inherit; font-size: 15.555556297302246px; font-style: inherit; font-variant: inherit; font-weight: inherit; line-height: inherit; margin-bottom: 1em; margin-top: 1em; outline: 0px; padding: 0px; vertical-align: baseline;">Economists use a big name for this type of development (named, of course, after a fellow economist) and call it a <i style="border: 0px; font-family: inherit; font-size: 15.555556297302246px; font-variant: inherit; font-weight: inherit; line-height: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">“Schumpeterian”</i> process – otherwise also known as Economics 101: Under market conditions, high prices trigger competition, and competition triggers innovation. There are victims among those agile spirits who move in first, and there is a wave of followers who come in next, catching up with the new technologies and refining them to make them more efficient, until the system turns stable again. These waves of innovation indeed are one of the most fundamental characteristics of functioning market economies.</div><div class="center" style="border: 0px; font-family: inherit; font-size: 15.555556297302246px; font-style: inherit; font-variant: inherit; font-weight: inherit; line-height: inherit; margin-bottom: 1em; margin-top: 1em; outline: 0px; padding: 0px; text-align: center; vertical-align: baseline;"><img alt="" class="left" src="http://m.c.lnkd.licdn.com/mpr/mpr/p/1/000/2bd/2b9/0271df7.png" style="border: 0px; float: left; font-family: inherit; font-size: 15.555556297302246px; font-style: inherit; font-variant: inherit; font-weight: inherit; line-height: inherit; margin: 0px 1em 1em 0px; max-width: 606px; outline: 0px; padding: 0px; text-align: left; vertical-align: baseline; width: auto;" /></div><div class="left" style="border: 0px; font-family: inherit; font-size: 15.555556297302246px; font-style: inherit; font-variant: inherit; font-weight: inherit; line-height: inherit; margin-bottom: 1em; margin-top: 1em; outline: 0px; padding: 0px; vertical-align: baseline;">The US is now reaping the second round effects of such a wave of innovation: after access to the massive resource base has been granted by technological improvements, and thus the boom been triggered, comes the hour of efficiency improvements.</div><div style="border: 0px; font-family: inherit; font-size: 15.555556297302246px; font-style: inherit; font-variant: inherit; font-weight: inherit; line-height: inherit; margin-bottom: 1em; margin-top: 1em; outline: 0px; padding: 0px; vertical-align: baseline;">The graph above shows how: In North Dakota, for example, the number of new wells started in 2012 grew by more than 50% and so did the state’s oil production – even though the number of rigs grew by only 10%. Producers are getting more oil out of the ground with less activity.</div><div style="border: 0px; font-family: inherit; font-size: 15.555556297302246px; font-style: inherit; font-variant: inherit; font-weight: inherit; line-height: inherit; margin-bottom: 1em; margin-top: 1em; outline: 0px; padding: 0px; vertical-align: baseline;">Perhaps the most important lesson one can ever hope to learn from this development is what it means for energy markets generally: that energy markets are governed by the very same simple principles as any other market.</div><div style="border: 0px; font-family: inherit; font-size: 15.555556297302246px; font-style: inherit; font-variant: inherit; font-weight: inherit; line-height: inherit; margin-bottom: 1em; margin-top: 1em; outline: 0px; padding: 0px; vertical-align: baseline;">There is a reason this happened in the US or Canada and not, say, in Venezuela or China – despite the fact that they sit on unconventional resources at least as plentiful as those in the US and Canada (oil sands in Venezuela, shale formations in China). This reason has nothing to do with resource endowments below ground but everything to do with competition and markets above ground. Innovation tends not to happen in economies where government control extinguishes the private reward for trial and error - in energy markets just as in any other industry.</div><div style="border: 0px; font-family: inherit; font-size: 15.555556297302246px; font-style: inherit; font-variant: inherit; font-weight: inherit; line-height: inherit; margin-bottom: 1em; margin-top: 1em; outline: 0px; padding: 0px; vertical-align: baseline;"><b style="border: 0px; font-family: inherit; font-size: 15.555556297302246px; font-style: inherit; font-variant: inherit; line-height: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">Global Impact</b></div><div style="border: 0px; font-family: inherit; font-size: 15.555556297302246px; font-style: inherit; font-variant: inherit; font-weight: inherit; line-height: inherit; margin-bottom: 1em; margin-top: 1em; outline: 0px; padding: 0px; vertical-align: baseline;">Meanwhile, the developments in North America are changing energy relations for the rest of us. They are still too new to be emulated in other parts of the world, although the resource base is wide-spread. But while other places are busy trying to locate those resources (and remember, they will have to mimic the “above ground” competitive conditions as well to access them efficiently, which will take time), developments in the US are reshaping global oil markets as we used to know them.</div><div style="border: 0px; font-family: inherit; font-size: 15.555556297302246px; font-style: inherit; font-variant: inherit; font-weight: inherit; line-height: inherit; margin-bottom: 1em; margin-top: 1em; outline: 0px; padding: 0px; vertical-align: baseline;">Five years ago the US imported 2 million barrels per day of refined products (i.e. gasoline, diesel, etc.). Last year, it became the world’s biggest exporter, selling 1 million barrels per day of refined products abroad (crude oil exports are still legally constrained in the US). All told, the US still is a net oil importer and likely to remain one for years to come, but look at the graph below – I think it tells it all.</div><div style="border: 0px; font-family: inherit; font-size: 15.555556297302246px; font-style: inherit; font-variant: inherit; font-weight: inherit; line-height: inherit; margin-bottom: 1em; margin-top: 1em; outline: 0px; padding: 0px; vertical-align: baseline;"><img alt="" class="center" src="http://m.c.lnkd.licdn.com/mpr/mpr/p/3/000/2bd/2a3/177ed88.png" style="border: 0px; display: block; font-family: inherit; font-size: 15.555556297302246px; font-style: inherit; font-variant: inherit; font-weight: inherit; line-height: inherit; margin: 0px auto 1em; max-width: 606px; outline: 0px; padding: 0px; text-align: center; vertical-align: baseline; width: auto;" /></div><div style="border: 0px; font-family: inherit; font-size: 15.555556297302246px; font-style: inherit; font-variant: inherit; font-weight: inherit; line-height: inherit; margin-bottom: 1em; margin-top: 1em; outline: 0px; padding: 0px; vertical-align: baseline;">Net US oil imports peaked in 2005 and have since fallen by 36% (or 4.5 million barrels per day). Just to clarify the order of magnitude; this reduction is equal in size to Japan’s entire oil consumption last year, Japan being the third largest oil consumer on the planet.</div><div style="border: 0px; font-family: inherit; font-size: 15.555556297302246px; font-style: inherit; font-variant: inherit; font-weight: inherit; line-height: inherit; margin-bottom: 1em; margin-top: 1em; outline: 0px; padding: 0px; vertical-align: baseline;">Just a few years ago, US imports were on a par with Europe’s; now they are one third below those of the European Union.</div><div style="border: 0px; font-family: inherit; font-size: 15.555556297302246px; font-style: inherit; font-variant: inherit; font-weight: inherit; line-height: inherit; margin-bottom: 1em; margin-top: 1em; outline: 0px; padding: 0px; vertical-align: baseline;">Over that same period, Chinese net oil imports rose 84% (2.8 million barrels per day). China is well on its way to overtake the US to become the world’s largest oil importer. You can take a guess as to how long it will take for the orange and light green lines cross - it is happening right as we speak. (Believe it or not, 20 years ago, China was a net exporter of energy!).</div><div style="border: 0px; font-family: inherit; font-size: 15.555556297302246px; font-style: inherit; font-variant: inherit; font-weight: inherit; line-height: inherit; margin-bottom: 1em; margin-top: 1em; outline: 0px; padding: 0px; vertical-align: baseline;">In my view, and this is a little guesswork now <a href="http://www.bp.com/en/global/corporate/about-bp/statistical-review-of-world-energy-2013/energy-outlook-2030.html" style="border: 0px; color: #006699; font-family: inherit; font-size: 15.555556297302246px; font-style: inherit; font-variant: inherit; font-weight: inherit; line-height: inherit; margin: 0px; outline: 0px; padding: 0px; text-decoration: none; vertical-align: baseline;" target="_blank">the foundation of which can be found here</a>, the US is likely to remain a modest net oil importer until about 2030. North America as a region (comprising Canada, Mexico and the US) looks set to become self-sufficient around 2020. China, on the other hand, soon the world’s biggest importer of fossil fuels (oil, gas and coal), will import almost 80% of its oil and more than 40% of its natural gas by 2030.</div><div style="border: 0px; font-family: inherit; font-size: 15.555556297302246px; font-style: inherit; font-variant: inherit; font-weight: inherit; line-height: inherit; margin-bottom: 1em; margin-top: 1em; outline: 0px; padding: 0px; vertical-align: baseline;">In this way the shale “revolution” becomes part of a much bigger development.</div><div style="border: 0px; font-family: inherit; font-size: 15.555556297302246px; font-style: inherit; font-variant: inherit; font-weight: inherit; line-height: inherit; margin-bottom: 1em; margin-top: 1em; outline: 0px; padding: 0px; vertical-align: baseline;">But what triggered it? Accident? The North American resource base? Markets? What are the implications? And - will it happen elsewhere?<br /><br /><br /><br /></div><div class="module-box" id="author-header" style="-webkit-box-shadow: rgba(0, 0, 0, 0.247059) 0px 1px 2px; background-color: white; border: 0px; box-shadow: rgba(0, 0, 0, 0.247059) 0px 1px 2px; font-family: Helvetica, Arial, sans-serif; font-size: 15.555556297302246px; line-height: 17.77777862548828px; margin: 0px 0px 12px; outline: 0px; overflow: visible; padding: 0px; vertical-align: baseline;"><div class="articles-header-bar" style="border: 0px; font-family: inherit; font-size: 15.555556297302246px; font-style: inherit; font-variant: inherit; font-weight: inherit; line-height: inherit; margin: 0px; outline: 0px; padding: 0px; position: relative; vertical-align: baseline;"><img alt="Christof Rühl" class="member-photo" height="80" src="http://m.c.lnkd.licdn.com/mpr/mpr/shrink_80_80/p/5/000/26f/17d/071a24f.jpg" style="border: none; font-family: inherit; font-size: 15.555556297302246px; font-style: inherit; font-variant: inherit; font-weight: inherit; left: 0px; line-height: inherit; margin: 0px 20px; outline: 0px; padding: 0px; position: absolute; top: -10px; vertical-align: baseline;" width="80" /><br /><div class="author-info" style="border: 0px; font-family: inherit; font-size: 15.555556297302246px; font-style: inherit; font-variant: inherit; font-weight: inherit; line-height: inherit; margin: 0px; outline: 0px; padding: 10px 0px 10px 120px; vertical-align: baseline;"><h2 class="author-name" style="border: 0px; font-family: inherit; font-size: 15.555556297302246px; font-style: inherit; font-variant: inherit; font-weight: inherit; line-height: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">Christof Rühl</h2><h3 class="author-headline" style="border: 0px; font-family: inherit; font-size: 13px; font-style: inherit; font-variant: inherit; font-weight: normal; line-height: 17px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">Chief Economist at BP</h3></div></div></div></div></div></div></div></div>

Oil Boom 2.0 – An American Dream Updated with Christof Rühl

The impact of the US shale “revolution” has people all around the world scratching their heads – over what it means: Is North America really...

Big Oil Execs Slippery handling of Big Data?

<div class="separator" style="clear: both; text-align: left;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhjkZvTZ_ntOpwJlxIWmEmMA-rW2B4EnU35jNefcyAFqyqzYPFUpoJWdHDzIcRgcUwCxIYkt7v99GEryEDdmlbC12TZrCsW62ekZdWiiefStBL97Hjww3aCqdg2o2fS9zNSInLZFQDhn0cn/s1600/molten_website_image_technology.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="200" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhjkZvTZ_ntOpwJlxIWmEmMA-rW2B4EnU35jNefcyAFqyqzYPFUpoJWdHDzIcRgcUwCxIYkt7v99GEryEDdmlbC12TZrCsW62ekZdWiiefStBL97Hjww3aCqdg2o2fS9zNSInLZFQDhn0cn/s320/molten_website_image_technology.jpg" width="320" /></a></div><div class="separator" style="clear: both; text-align: left;"><br /></div><h1 class="entry-title" style="background-color: white; border: 0px; font-family: 'Open Sans', sans-serif; font-weight: 300; margin: 0px 0px 10px; outline: 0px; padding: 0px; vertical-align: baseline;"><span style="background-color: transparent; color: #4c4d51; font-size: 14px; line-height: 22px;">Hearing it enough already?  Big Data.  Most every major O&G executive is banging the drum as to it being the foundation of the future.   How "Big Data" is a crucial part of changing the world's energy.</span></h1><h1 class="entry-title" style="background-color: white; border: 0px; font-family: 'Open Sans', sans-serif; font-weight: 300; margin: 0px 0px 10px; outline: 0px; padding: 0px; vertical-align: baseline;"><span style="background-color: transparent; color: #4c4d51; font-size: 14px; line-height: 22px;">Yep, its true and proven.  Big data with all the new technology and solutions has made quantum changes to many companies, and entire regions and countries.  Yet according to Molton, oil and gas executives treat this prized Big Data asset like a vintage restored toy. <br /><br /><a href="http://www.pennenergy.com/articles/pennenergy/2013/08/molten-big-oil-and-gas-not-ready-for-big-data.html" target="_blank">PennEnergy</a> chimed in on the </span><span style="background-color: transparent; color: #990000; font-size: 14px; line-height: 22px;">Molton</span><span style="background-color: transparent; color: #4c4d51; font-size: 14px; line-height: 22px;"> report stating "</span><span style="color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 12px;">According to the oil and gas management consultancy, many </span><a adhocenable="false" href="http://www.pennenergy.com/oil-gas.html" style="border: 0px; color: #1370ac; font-family: Arial, Helvetica, sans-serif; font-size: 12px; margin: 0px; outline: 0px; padding: 0px; text-decoration: none;" target="_blank">oil and gas</a><span style="color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 12px;"> companies are ‘borderline irresponsible’ in how they maintain their existing data, despite the billions they spend on it. The company argues that better valued and managed data will afford executives and investors greater certainty on strategically important measurements crucial to executive decision making, such as the Reserve Replacement Ratio (RRR)."  </span></h1><h1 class="entry-title" style="background-color: white; border: 0px; font-family: 'Open Sans', sans-serif; font-weight: 300; margin: 0px 0px 10px; outline: 0px; padding: 0px; vertical-align: baseline;"><span style="background-color: transparent; color: #4c4d51; font-size: 14px; line-height: 22px;">This is sounding all too familiar?  Have a read the post on Molton's Site?  Interesting perspective and points out an array of issues O&G execs are doing in handling Big Data and offer some insights..</span></h1><h1 class="entry-title" style="background-color: white; border: 0px; font-family: 'Open Sans', sans-serif; font-weight: 300; margin: 0px 0px 10px; outline: 0px; padding: 0px; vertical-align: baseline;"><a href="http://www.molten-group.com/" style="background-color: transparent; border: 0px; clear: left; color: #aeaeae; font-size: 22px; font-weight: bold; line-height: 22px; margin-bottom: 1em; margin-right: 1em; margin-top: 0px; outline: 0px; padding: 0px; text-decoration: none; text-transform: uppercase; vertical-align: baseline;"><img alt="Molten Group" src="http://molten.vgroup-digital.com/wp-content/uploads/2012/11/Molten_logo.png" style="border: none; margin: 0px; outline: 0px; padding: 0px; vertical-align: bottom;" /></a><span style="background-color: transparent; color: #4c4d51; font-size: 14px; line-height: 22px;"> "Oil and gas companies are highly dependent on data, and more recently ’big data’, to make critical strategic decisions – yet they do not recognize the value of this data nor do they manage it as a valuable asset. Our recent study, which examines the issues data management presents, shows that investment in data is high and management of data is low. However the rewards in managing data well are high, with those companies who do it achieving the highest accuracy in the all important Reserves Replacement Ratio."  Read the <a href="http://www.molten-group.com/the-data-crunch/" target="_blank">full post here</a> and</span><span style="background-color: transparent; color: #4c4d51; font-size: 14px; line-height: 22px;"> </span><span style="background-color: #efeeed; color: #4c4d51; font-size: 14px; line-height: 22px;"><a href="http://www.molten-group.com/wp-content/uploads/2013/07/130207_white_paper_WEB_v1.pdf" target="_blank">Download the freee report/study </a>on data management in the Energy Sector and how to prepare for ‘big data’ </span><span style="background-color: transparent; color: #4c4d51; font-size: 14px; line-height: 22px;"> </span></h1>

Big Oil Execs Slippery handling of Big Data?

Hearing it enough already? Big Data. Most every major O&G executive is banging the drum as to it being the foundation of the future. ...