In 2019 we saw significant interest in midstream markets from private equity firms. Investments by private equity have been wide ranging across basins and midstream assets including pipelines, wastewater infrastructure, terminals, and gas processing plants. The rapid rise in production in the U.S. requires infrastructure which is why private equity firms have been giving premium […]
Jack of few, Master of one: Strategic consolidation of oilfield service companies
Oilfield services demand is strongly correlated to upstream exploration and production spending and activity patterns. However, we see significant play-wise variations in oilfield services spending. With advancing technology to increase oil and gas recovery, shale plays are becoming more specialized and unrelated to other plays in terms of lithology, fluid properties (e.g. water cut, gas-oil […]
How can OEM, EPC, and OFS companies compete in the downturn?
Over the past decade, the North American oil and gas industry has seen many dramatic changes. The most dramatic change has been an increase in production from unconventionals leading to a large supply of oil, natural gas, and NGLs. However, unconventional production is more dependent on the larger supply chain leading to significant investment across […]
Oil Majors Pursue Energy Storage
In May 2016, Total announced a $1.1 billion purchase of battery maker, Saft. This is the largest investment into energy storage by an oil and gas company to date. Total is not alone in investing in energy storage technology to help support efforts to provide more renewable energy. Several other oil and gas companies have […]
Improving Capital Projects with Modularization
Capital projects drive growth in the oil and gas industry and, yet, are plagued by cost and schedule overruns. In 2015 there were an estimated 800 oil and gas projects costing over $500 billion and one-third will end up facing delays. Operators are constantly searching for ways to improve performance, meet schedules, and reduce costs. […]
Driving Capital Projects to Best-in-Class Execution
Large capital projects are critical drivers of growth in the oil and gas industry. Over the next two decades there will be an estimated $22 trillion dollars of investment into oil and gas projects worldwide. North America, Europe, and Asia account for ~14 billion dollars of planned investment spend. Capital projects, however, routinely face cost […]
The global fight for resources
Nothing is more telling of the global fight for resources than a few trips to Asia and long conversations with clients as I have learned this past year. To build the roads, bridges, cars, planes, and power plants their people need, policy makers, CEOs, and consumers in India, China, Thailand, and Malaysia in Asia are […]
A SURGE of energy entrepreneurship
My colleague asked excitedly, “Are you here yet?”, but I was still looking for parking. She declared “This is a party, not a conference” before urging me to come and find a seat quickly. SURGE is a Houston-based start-up accelerator focused on companies developing software for the energy industry. After putting their inaugural portfolio of […]
Corporate social responsibility in the oil and gas industry
Two interesting articles that appeared last week highlighted for me a project that ADI Analytics recently completed on benchmarking corporate social responsibility (CSR) in oil and gas companies. The first was in the Economist and talked about how CSR is now more constructive and better ingrained with core business operations and goals. The second is a […]
The “make vs. buy” lesson for Delta and Chesapeake
Ford Motor Company apparently owned the land that fed the sheep whose wool was used to make its car seats. While this is, in fact, an urban legend it brings up a very valuable point. What is more beneficial − make or buy? In other words, should a company invest in owning and operating all […]
