As we embark on 2017, the oil and gas, energy, and chemical industries must grapple with uncertainty that stems from various factors including the OPEC deal, Donald Trump’s election, Brexit, slowing emerging economies, electric vehicles, and new regulations. The ADI team has assessed these factors and uncertainties in our outlook for 2017. We welcome feedback […]
Growing Consolidation and New Markets Drive Change in the Artificial Lift Market
Artificial lift is a method of increasing pressure within an oil and gas reservoir to maximize hydrocarbon recovery. Historically, artificial lift was primarily used on wells with insufficient pressure but now in an effort to improve flow rates its use on naturally flowing wells has increased. In total there are ~1 million wells utilizing artificial […]
How Are Low Oil Prices Impacting the LNG Industry?
In the past several months, oil prices have fallen considerably. Brent crude oil is down 32% from $113 to $76 and WTI is down 29% from $107 to $75. While down, natural gas has not seen as large a fall. Henry Hub Natural Gas is down 9% from $4.70 to $4.20. The recent decline in […]
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 […]
China is the New Energy Dragon
It’s official. China is the world’s largest consumer of energy. This happened a lot sooner — at least five years — than projected thanks to the disproportionate impact of the Great Recession on the U.S. relative to China. More significantly, this is an inexorable phenomenon as the IEA announcement notes: Since 2000, China’s energy demand […]
Growth or dividends: Investing in oil
The Wall Street Journal today presented an interesting framework to think about investing in oil. The article takes a rather conservative perspective and suggests that investors should look at oil not for growth but for dividends. So they consider the super majors a better bet than the independents. While several points in the article are […]
BP’s Tiber underscores difficulty of finding oil
Last week, BP announced a major oil discovery — Tiber — in the Gulf of Mexico. This discovery strengthens BP’s leadership in the Gulf of Mexico where it already produces more than 400,000 barrels per day and operates two of the largest fields, Atlantis and Thunderhorse. BP has exceeded its reserve replacement ratio by 100% […]