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Global and Regional Markets

Political instability keeps Latin America a challenging region for oil and gas industry

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Many countries in Latin America continue to struggle with political and social instability, resulting in uncertain rules and regulations for the oil and gas industry. In Venezuela, for example, the country’s goal of reaching 5.2 million bbl/day of production by 2012 has fallen significantly short, and it’s now producing only 2.1-2.2 million bbl/day. However, if the country installs a new government with policies designed to capitalize on the country’s vast hydrocarbon resources, that 5.2 million bbl/day production goal could be achievable within five years, according to Jorge R. Piñon, Director of the Latin America and Caribbean Energy Program and Interim Director for the Jackson School of Geosciences at The University of Texas at Austin. Watch DC’s video from the 2016 IADC Annual General Meeting in Scottsdale, Ariz., on 3 November for more details.

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Tudor Pickering Holt: Oil prices could reach $70/bbl in 2017

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Byron Pope, Managing Director, Oil Service Research at Tudor Pickering Holt, is forecasting that oil prices could get up to $70/bbl next year. He attributed this to growing global energy demand and shortened supply caused by canceled upstream projects around the world. Mr Pope also expects upstream CAPEX to grow in the coming year and for the US land rig count to continue increasing. However, it may take several more years for the offshore rig market to recover, he said. Watch the video with DC’s Alex Endress from the 2016 IADC Annual General Meeting in Scottsdale, Ariz., on 4 November for more information.

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US sanction regimes continue to evolve for Russia, Iran, Cuba

Russian sanctions highlight how companies can be immediately impacted by sectoral sanctions. For example, ExxonMobil had a relatively short time frame to stop drilling operations in Russia’s Kara Sea after sanctions were announced in 2014.

Business prospects must be balanced with careful risk management, understanding of local challenges and well-drafted contracts By Jennifer Bickley, Chamberlain, Hrdlicka, White, Williams & Aughtry Since early 2014, the US has seen a significant number of changes to the sanctions imposed by the Department of Treasury’s Office of Foreign Asset Control (OFAC). These changes have, or may have in the future, a meaningful impact on the oil and gas industry. Generally, OFAC’s purpose in imposing sanctions is to support the US’ foreign policy and national security goals through sanctions that are imposed on (i) individuals/entities through a published list of those persons with whom US persons/entities cannot do business (SDN List); (ii) targeted trade areas (sectoral sanctions) and targeted individuals ...

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Dayrates down, but rig demand remains stable in Middle East

Shelf Drilling’s Galveston Key jackup is drilling development wells in the UAE for National Drilling Company. The rig has a maximum drilling depth of 21,000 ft and can work in up to 300-ft water depths.

While drilling markets remain depressed around the world, the Middle East still stands as a growth market. In this region, demand for drilling rigs appear to be relatively stable and is likely to continue growing in 2017 and beyond. “Few rigs have come off contract without going back to work,” said Niels Espeland, President, International at Grey Wolf Oilfield Services. “The Middle East has been stable throughout the cycles. Due to its unique drivers, there’s always been growth regardless of the global market cycles.”

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D&C News

HighlanderTN

Drilling of the first production well has begun on the Maersk Oil-operated Culzean field in the UK. The well is the first of six production wells to be drilled on the high-pressure, high-temperature (HPHT) field, with continuous drilling activity planned over the next five years. First gas is expected to be produced from Culzean in 2019.

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ADIPEC to launch new program targeting cybersecurity

ADIPEC

Cyber threats and attacks against the oil and gas industry are becoming increasingly complex and sophisticated, targeting both IT and OT infrastructures. Industry experts are calling for continuous improvements to cybersecurity safeguards and protocols in oil and gas facilities in order to protect valuable company information and key operational equipment, as well as to maintain operations in a safe and secure manner. Recent figures from Cybersecurity Ventures show that spending on protection against cyber-attacks is forecast to be a market worth US$13.43 billion by 2019 in the Middle East and Africa region alone. Meanwhile, US-based ABIresearch forecasts global cybersecurity spending on oil and gas critical infrastructure to reach US$1.87 billion by 2018. “In 2016, there is an urgency for nations ...

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