Petroleum engineering in nontechnical language by norman hyne 5. This book examines the ways that oil economics will impact the rapidly changing global economy, and the oil industry itself, over the coming decades. Just how much oil is traded away from global commodity markets is hard to tell, but an estimate of 20 percent seems plausible. Organization of the petroleum exporting countries opec andor its member countries concerning the legal. Finally to mention that the recent global environmental trends for decreasing co2 emissions, reducing the use of fossil fuels in the global energy mix and increasing of renewables sources of energy in the global energy mix can shape up the whole global oil and gas industry. The oil and gas found in the ground come in different grades or qualities. Although oil and gas are likely to be major sources of. Evolving energy demand and pricing outlooks are transforming the oil and gas industry. This is the seventh year that we have conducted our survey and our goal is to provide you with an informed view of global and regional trends in employment, compensation and benefits within the oil and gas industry, while identifying some of the. In addition to these developments, high global oil prices also played a role in spurring investment in shale production. The industry is responsible for 72% of global oil demand today.
As supply increases and oil prices rise, volatility will continue to drive strategy. The revolution is the product of advances in oil and natural gas production technologynotably horizontal drilling and hydraulic fracturing. Energy information administration prepared by leidos, inc. From weakening economic growth and intensifying trade tensions to global political risks, our 2020 oil and gas industry outlook takes stock of the main factors to watch in 2020.
Despite tehrans attempts to diversify the economy, the oil and gas industry is still the critical engine of economic growth. Industry giants such as royal dutch shell plc, chevron corporation, exxon mobil corporation and sasol are already here. Finally, chapter iv provides an overview of the history of opec, explaining. New technology has made it profitable to extract oil and gas from new places when prices are high. Pest analysis for global oil and gas companies operations. The electric power industry the backbone ois f americas economic sectors, generating the energy that empowers its people and businessesin global commerce. Oil and gas sector activities canadas advantages a wealth of opportunities 1 natural resources canada. December 2019 safety analytics derived from virtualreality data can quantify workers. It is an overview of the main processes and equipment. If you continue browsing the site, you agree to the use of cookies on this website.
The primary way to describe the quality of oil is in terms of its sweetness and heaviness. One of the major new processes is hydraulic fracturing, or fracking, which allows companies to extract shale oil and gas. Natural gas commodity primer topic besgg activist investing topic primer topic advtg advertising agency rebate issue topic primer topic autmn auto leasing growth topic primer topic ibnkg bank energy risk topic primer. Commodity econg thermal coal commodity primer commodity econg oil commodity primer commodity econg u. Credit suisse global energy research team oil and gas.
Petroleum has been the primary industry in iran since the 1920s. A survey of the literature on local content policies in the oil and gas industry in east africa chilenye nwapi summary although oil and gas exploration has been going on in east africa for decades, until recently exploration activities grew more slowly compared to other regions in africa. More effective management of this data could reduce risks for companies and help them boost the bottom line. The most oil is produced between the temperatures of 60 and 120 c, a temperature range known as the oil window. For example, under high oil and gas resource case assumptions in the aeo2014, which. Credit suisse global energy research team oil and gas primer. Canadas oil and gas industry is a global innov ator in equipment supporting the explor tion, extraction, and processing of hydrocarbon reserves both onshore and offshore. This reader covers basic information about oil and gas and the industry that extracts them. The leidos global natural gas markets overview has three sections. Oil and gas production handbook an introduction to oil. Modification to the methodology of the select sector indices april 25, 2019 at 5.
The sector requires new business models, rationalized portfolios, accelerated investment in digital technologies and greater capital flexibility. Worldwide oil and gas professional services 2016 vendor assessment august 2016. Oil production has been constrained in relation to demand for the past decade, with a. The place where oil and gas are cooked out of the rocks is called kitchen. Transportation, water, emergency services, telecommunications, and manufacturingrepresent only a few of power grids the critical downstream dependencies.
And yet it is one that we tend to take for granted until a crisis emergesa tanker runs aground, a hurricane damages a refinery, a country changes political leaders or. Natural gas production in the appalachian region yields an added benefit in the form of natural gas liquids ngls. Oil has been used for lighting purposes for many thousands of years. The mostimportant difference is that while markets for oil are global, those of natural gas are still regional. That is because the cheapest way to transport natural gas is by pipeline. Building growth strategies on shifting sands although the oil and gas industry has always been volatile, there was nonetheless a comfortable predictability to the boom and bust pendulum. A new standalone report for the h12018 global gas service the attached excel file provides wood mackenzies h12018 global gas and lng price outlook.
If a reservoir contains both oil and gas, the gas it contains is called associated gas. Vision 2040 global scenarios for the oil and gas industry deloitte. From individual savings to nationwide energy security, the natural gas and oil industry has set the country on a sustainable course towards a brilliant future. Mckinsey global institute our mission is to help leaders in multiple sectors develop a deeper understanding of the global economy. An introduction to global natural gas markets, drivers, and theory for the u. Ethane, propane, butane, isobutane, and natural gasoline pentanes plus are all ngls. The oil and gas industry natural resource governance. The collapse in oil prices led us to revise our oil production forecast for 2020 in colombia. Understanding the oil and gas industrys current financial weaknessand how the industry so quickly moved from strength to fragilityrequires some foundational knowledge in two areas. Nationally owned oil companies are the largest players in the industry. The oil price continued to rise in 1h 2018 yet a q4 2018 renewed supply. Understanding the oil market an industry primer with breakdown of recent trends by segment. Vision 2040 global scenarios for the oil and gas industry 5 how to read the study few areas of the economy are as volatile literally and figuratively as the oil and gas sector.
Apis graphics primer on important industry issues spanning global economics and oil markets, natural gas markets and key factors to sustain and grow americas natural gas and oil revolution. But few companies are fully harnessing the power of digitalization. The oil and gas business is clearly a multifaceted, global industry that impacts all aspects of our lives. Oil and gas is a very dataintensive industry, but much of the information being captured and stored is unstructuredwhich comes at a cost. Companies in the technology sector must address the risks and disruptive potential of their products and services. Lighter crude can be refined into higher value products, such as the gasoline or petrol used. Although the oil and gas industry has always been volatile, there. Understanding the oil market an industry primer with. The question of how recent developments in the oil and gas industry should affect u. Dow jones sector titans indices consultation on industry. Ive been getting a lot of pms for this primer so i thought i upload it here. The multiplicity of factors that influence the directions of the petroleum production chain is huge, making the task of preparing strategies and action plans.
We see the fastest 3 5y growth coming from the lowest hanging fruits water treatment and recycling, countries incentivising. Ngls are hydrocarbons in the same family of molecules as natural gas and crude oil, composed exclusively of carbon and hydrogen. While alternative forms of energy are becoming more popular, there are. Havard devold oil and gas production handbook an introduction. The oil and gas sector is teeming with complicated terminology that can overwhelm investors new to the space. Short takes from our experts on the oil and gas industry. One of the major new processes is hydraulic fracturing, or fracking, which allows companies to. The enormous economic contribution of the oil and gas industry to many national economies makes its future of critical importance to the global community. Analysis of the current problems of russias oil and gas industry in the context of the main trends of global oil and.
The global oil and gas tax guide summarizes the oil and gas corporate tax regimes in 86 countries and also provides a directory of ey oil and gas tax and legal contacts. Transforming safety by improving hazard sensitivity. Build a strong investment knowledge base with the cfa institute oil and gas industry guide. Our flagship business publication has been defining and informing the seniormanagement agenda since 1964. Kpmgs global oil and gas practice was named a leader in oil and gas professional services in the idc marketscape.
The oil and gas industry overview and trends nrgi reader april 2015 this reader is intended for use in conjunction with the natural resource charter. Historically, we know the tales of eternal fires where oil and gas seeps ignited and burned. In our view, the volume of marketed natural gas will remain unchanged as compared to 2019, maintaining the level of 7. In areas where oil is found in shallow reservoirs, seeps of crude oil or gas may naturally develop, and some oil could simply be collected from seepage or tar ponds. The index is designed to measure the stock performance of u. Exports of energy are rising while imports are falling. Other includes onshore conventional, heavy oil, unconventional gas and excludes. Oil and gas trends 2019 part of pwc s 22nd annual global ceo survey trends series building growth strategies on shifting sands. Timing between the two components can take years and usually does.
The content is based on information current to 1 january 2016, unless otherwise indicated in the text of the chapter. Liquefied natural gas developments and market impacts. Oct 11, 2010 in 1908, iran was the first country in the persian gulf to discover oil. The predictions of peak oil were both right and wrong. However, for our industry to realize this potential in full, a number of economic, social and geopolitical factors that influence the oil and gas sector globally need to. Jan 17, 2019 the oil venezuela, for instance, sends to china to repay its loans or cover interest payments may count against global oil production figures, but it is hardly available for global consumption. Prices through 2035 are included for key hubs henry hub, ttf and japan as well as indicative oilindexed contract prices for europe and asia. In 1908, iran was the first country in the persian gulf to discover oil. The economics of oil a primer including geology, energy. Historical overview of the global oil and gas industry. The purpose of this paper is to consider the future of the oil and gas industry and the profound challenges that it is facing. Powering our insights with data and advanced analytics. Canada is an ideal destination for oil and gas companies. The first section provides a summary of the global natural gas market with respect to worldwide supply, demand, and prices.
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