X

Sign Up To Our Free Newsletter

Join Now

Thanks for subscribing to our free newsletter!

ERROR

  • 3 minutes Texas forced to have rolling brown outs. Not from downed power line , but because the wind energy turbines are frozen.
  • 7 minutes Scientists Warn That Filling The Sahara With Solar Panels Is A Bad Idea
  • 11 minutes United States LNG Exports Reach Third Place
  • 15 minutes Joe Biden's Presidency
  • 28 mins U.S. Presidential Elections Status - Electoral Votes
  • 15 hours Interest article about windmills and waterwheels in Europe
  • 1 day Speaker Pelosi, "Tear Down This Wall"
  • 1 day Chance for (Saudi)Arabian peninsula having giant onshore Gas too?
  • 2 days NYT:  The Supreme Court’s order (Re:  Trump’s tax returns) set in motion a series of events that could lead to the startling possibility of a criminal trial of a former U.S. president
  • 9 hours Retired RAF pilot wins legal challenge over a wind farm
  • 2 days Disaster looming in UK offshore wind power
  • 23 hours “Cushing Oil Inventories Are Soaring Again” By Tsvetana Paraskova
Major Crude Draw Sends Oil Prices Higher

Major Crude Draw Sends Oil Prices Higher

Oil prices continued to rally…

Can China Shake Its Dangerous Addiction To Oil?

Can China Shake Its Dangerous Addiction To Oil?

The world is scrambling to…

Precise Consultants

Precise Consultants

’Precise Consultants is a London based technical recruitment consultancy that supplies specialist personnel to the offshore oil and energy industry. The company was founded by…

More Info

Premium Content

Is It Too Late To Avoid An Oil Supply Crisis?

Wood Mackenzie isn’t pulling any punches. “The warning signs are there – the industry isn’t finding enough oil.”

And its latest report continues in the same ‘spade is a spade’ vein: “A supply gap opens up in the mid-2020s, reaching 3 million b/d by 2030, 9 million b/d by 2035 and a formidable 15 million b/d by 2040. Barring technology breakthrough, we’ll need new oil discoveries.”

And then the crucial phrase:

“The problem is that the recent rate of commercial volumes found gives little confidence that there will be enough new discoveries to fill the gap.”

It warns that the only solution at this stage is a significant hike of at least 20% in annual investment. It unapologetically lays the finger of blame on the gradual reduction in investment during the current cycle.

Without a commitment to drive new discoveries, there will be consequences. Prices would of course rocket. Companies’ growth targets would be under the spotlight and would inevitably lead to increased numbers of mergers and acquisitions.

However it may even be too late to avoid difficulties altogether. Given that the average length of time between discovery and peak production is the best part of a decade, we’re already running short.

But it urges action nonetheless.

Firstly: sort out capital availability: “the duty to shareholders’ interests cannot be myopically short-term.” In recent times the focus has shifted from growth to profitability and returns. Energy stocks aren’t what they once were on Wall Street.

Next: the reward has to justify the risk. It’s a fact that the checks and balances the industry developed post-crash means greater returns – ‘double-digit...in 2017, the highest for more than a decade.” So exploration is now better placed to deliver ROI.

And finally, head to the frontier. At the start it pays tribute to the delivery from Guyana, and names Suriname, Mexico, Senegal, Australia and others are being the “most eagerly watched potential play opening wells”.

By Precise Consultants

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News