Oil and gas prices were relatively high in 2022, although they have come down significantly from their highs reached last summer. Despite the drop, oil prices have remained higher than what we have seen for the last seven years, and natural gas was at level not seen in over a decade. Even with these prices, […]
2023 Upstream Oil & Gas Outlook: Tight supply and little growth
Upstream oil and gas fared well in 2022. Despite oil prices falling over 30% from their summer highs, oil and gas prices remain elevated, with WTI prices over $70 per barrel and natural gas at prices not seen since 2008. Net income in 2022 is expected to double from 2021 for oil and gas producers, […]
Artificial lift accelerates in the shale patch
As the shale patch enjoys the current upswing in commodity prices and prepares to supply the marginal barrel of demand growth, operators have significantly accelerated the adoption of artificial lift options. Through a mix of primary research conducted with oil & gas operators in the Permian, Bakken, Eagle Ford, and the Rockies, coupled with extensive […]
Addressing natural gas flaring: A step towards energy transition
Flaring possesses considerable challenges due to the recent growth in associated gas production primarily from oil-producing plays such as the Permian, Eagle Ford, and Bakken. Flaring can be a consequence of bottlenecks in midstream infrastructure, well development, or process upsets at the well site. As shown in Exhibit 1, key drivers for flaring include higher […]
2022 Upstream Outlook: Balancing growth and discipline
After the COVID-19 pandemic-related lockdown in 2020 that shook the global economy and shattered oil prices to record bottoms, the upstream oil and gas industry rebounded strongly throughout 2021 with oil prices reaching record levels not seen in past six years. Upstream oil and gas performed better than expected in 2021 and future trends will […]
Outlook for pipeline infrastructure in the Permian
In 2018-19, midstream players in the Permian Basin rushed to satisfy the demand for pipeline capacity driven by booming oil and gas production. The associated natural gas production had reached ~17 billion cubic feet per day (bcfd) and robust drilling activity and moderate gas prices had pressurized the midstream operators to expand the existing pipeline […]
Where are oil prices headed in 2021?
The price of crude oil has been on an upward trend over the last few months and rose sharply last week after OPEC+ failed to agree to output increases. Brent crude oil futures prices reached a high of $75 earlier this month with a year-to-date gain of nearly 36%. While the burst of global economic […]
Regional spotlight: Oil & Gas in Central Asia
Central Asia comprises of Kazakhstan, Turkmenistan, Uzbekistan, Afghanistan, Tajikistan, and Kyrgyzstan. Kazakhstan is the main oil producer in the region, while the rest of the region mainly produces gas led by Turkmenistan and Uzbekistan. As of 2019, the total proved reserves in the region are 31.4 billion barrels of oil and 825.8 trillion cubic feet […]
Upstream outlook: A shift to responsible drilling
In 2020, the oil and gas upstream sector dramatically shifted to a self-preservation and survival mode. The impact of COVID-19 shattered crude oil prices to all-time lows in March 2020 followed by a sudden slump in global crude oil demand distressed all upstream stakeholders. It translated into drastic CAPEX reductions (especially in exploration), a postponement […]
Key takeaways from BP Week 2020
I gatecrashed an oil and gas conference in India as a grad student in the mid-1990s where India’s then Petroleum Secretary, T.N.R. Rao, while discussing the difficulties of the business lamented, “Cigarettes and beer make more money for gas stations than fuel sales.” The technically sophisticated oil and gas industry has always snickered at consumer […]