• 3 minutes Don't sneeze. Coronavirus is a threat to oil markets and global economies
  • 5 minutes Boris Johnson taken decision about 5G Huawei ban by delay (fait accompli method)
  • 9 minutes This Battery Uses Up CO2 to Create Energy
  • 12 minutes Shale Oil Fiasco
  • 8 hours Historian Slams Greta. I Don't See Her in Beijing or Delhi.
  • 1 day We're freezing! Isn't it great? The carbon tax must be working!
  • 1 day US (provocations and tech containment) and Chinese ( restraint and long game) strategies in hegemony conflict
  • 4 hours Trump has changed into a World Leader
  • 5 hours Beijing Must Face Reality That Taiwan is Independent
  • 2 hours Let’s take a Historical walk around the Rig
  • 2 days Indonesia Stands Up to China. Will Japan Help?
  • 5 hours Tesla Will ‘Disappear’ Or ‘Lose 80%’ Of Its Value
  • 4 hours Yesterday POLEXIT started (Poles do not want to leave EU, but Poland made the decisive step towards becoming dictatorship, in breach of accession treaty)
  • 2 days Might be Time for NG Producers to Find New Career
  • 2 days Environmentalists demand oil and gas companies *IN THE USA AND CANADA* reduce emissions to address climate change
  • 3 days Anti-Macron Protesters Cut Power Lines, Oil Refineries Already Joined Transport Workers as France Anti-Macron Strikes Hit France Hard

Where’s The Top Place to Produce Oil and Gas Today?

Where’s The Top Place to Produce Oil and Gas Today?

One of the most critical pieces of news for the E&P sector came this month.

Not a new discovery. Or a high-impact drilling technique. In fact, this development didn’t come from geologists or engineers at all.

It came from a group of accountants.

Namely, mega-bookkeepers Ernest & Young. One of the leading firms globally in auditing and analyzing finances for oil and gas producers.

This outfit sounded a warning on the future of the E&P sector. Telling investors they need to beware of a silent killer that is stalking producers in some parts of the world. Places stock buyers should be looking at reducing their exposure.

The accountants also gave some hints on which E&Ps appear immune to this potentially company-ending issue. Ideas that suggest a certain group of investments in the oil and gas space are going to outperform significantly.

The issue driving this risk (and opportunity) comes down to one word: costs.

Ernest & Young looked closely at costs for the global E&P world as part of the firm’s annual “Global oil and gas reserves study”.  

Their findings were astonishing.

The numbers left little doubt that costs in today’s oil and gas world are weighing on producers like never before. Production costs in 2012 rose 6% globally—driven by higher prices for labor and services.

Now, 6% isn’t a huge amount on its own. But numbers like this start…




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