A new info provided by IEA chief...
Ample crude supplies until mid-2016: IEA chief
26 Oct 2015 17:11
[SINGAPORE] The head of the International Energy Agency said Monday that ample supplies of oil in the world market would extend into the middle of next year, while investment is expected to decline further because of persistently low prices.
However, EIA executive director Fatih Birol said risks from seething geopolitical tensions in the oil-rich Middle East that could provide support to prices remain.
Oil investment is already down 20 percent worldwide this year and another drop is likely in 2016, Birol told an energy conference in Singapore - marking the first time since the mid-90s that spending has fallen for two straight years.
...
AFP
Source: Business Times Breaking News
This is a warning to service support players as their principals get leaner and stronger in the face of tough global mkt conditions:
M&A worsening WorleyParsons’ plight, says MD
Paul Garvey
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Resources Reporter
Perth
Andrew Main
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Senior Business Reporter
Sydney
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Andrew Wood says M&A could come at the expense of new developments Source: News Corp Australia
[b]The wave of merger and acquisition activity sweeping through the oil and gas sector is likely to exacerbate the short-term headwinds facing WorleyParsons, the engineering group’s managing director has warned.[/b]
After the company’s annual general meeting yesterday, Andrew Wood said most of the company’s big oil and gas customers were using the low price environment to hunt for consolidation opportunities. That focus on acquisitions could come at the expense of investment in the new developments that form the core of Worley’s business in the short-term.
“While that activity is occurring, what tends to happen is it just slows activity levels a little as they reshape the business,” Mr Wood said.
“But in the end it means a stronger industry and better projects going forward.”
Australia’s oil and gas industry has been a particularly lively in terms of M&A in recent weeks, with local leader Woodside Petroleum making an approach to Oil Search and Adelaide’s Santos fielding a $7.14 billion cash offer from private equity group.
Worley has been among the many service providers hit hard by the downturns in both the oil and gas and mining industries. Its shares have fallen by 64 per cent since July last year, and the company has shed thousands of jobs in response to the weak conditions in its core industries.
The company yesterday flagged that more redundancies were likely in the months ahead, with Mr Wood saying it would incur another $20 million-$30m in redundancy costs in the current half.
“We have to have a business that is appropriately shaped for where we are today and how we position for the future,” Mr Wood said.
“That has to involve reshaping the business from the top to the bottom.”
Mr Wood acknowledged that the already challenging outlook for Worley had become more complicated in recent months as oil prices continued to remain at low levels.
“Talking to our major customers, there was some building of momentum in the market just prior to our results (in August), where there was some expectation that oil prices would recover,” he said.
“I think that dip in oil prices we had a little while ago has put our customers back on the back foot a little.”
Chairman John Grill faced inevitable shareholder unhappiness during the meeting over the falling share price and reliance on a specialisation that’s under serious pressure from low commodity prices, but noted that “we know that the market will recover”, if not in this financial year.
(03-11-2015, 10:09 PM)greengiraffe Wrote: [ -> ]BP sees glut of hydrocarbons
- THE TIMES
- NOVEMBER 04, 2015 12:00AM
Taking into account all accessible forms of energy, including nuclear, wind and solar, there are enough resources to meet 20 times what the world will need until 2050, BP says in the report.
Mr Eyton added: “Energy resources are plentiful. Concerns over running out of oil and gas have disappeared.”
The Times
The Times[/font][/size][/color]
After done my own research I realize that while there are other alternative energy around today but there's nothing that can replace oil, If you look at say a vehicle each wheel is made up of 7 gallons of oil, the plastics paints resins that go into it are all made up of oil, the vast amount of energy that is spent that go into smelting the steel aluminium and manufacturing the rest of the car frame the engine is made up of untold billions of barrels of oil.
there's around 700 million cars worldwide, the tires alone takes over 1 billion barrels of oil to produce, there's nothing in the world can replace oil if your tried to combine use of coal wind solar nuclear they cannot replace 700 million cars or anything. What about energy that goes into building ships planes appliances cosmetics chemical fertilizers pesticides to grow our food?
The saudis claim to have 250 billion barrels in the ground, how much of that is already pumped out since the 60's? One also needs to consider gravity as oil well pressure is released extraction gets harder, water can be used as oil is less dense than water how much of their fresh water is diverted for such use? How much energy that goes into desalination to produce water to extract oil? if the saudis claim to have so much oil in the ground then why do they also have around 50 offshore oil rigs?
Logically speaking if the world guzzles 90 million barrels of oil a day, 1 billion barrels only last 11 days ? And that's just waking up in the morning turn on the light, water heater, cooking stove, commute, run machinery, check your email etc ..