By making LNG readily available and integrating it into current energy ecosystems, countries such as India, Pakistan and Bangladesh could successfully achieve a shift to a low-carbon, stable energy system serving a new generation of customers.
Mexican Subsurface is very exciting. There is a lot of history behind the Mexican O&G industry. Mexico is one of the top producers in the world thanks to its shallow water production but the potential of its Deepwater needs to be proven.
Maybe there was a certain pride, nay, smugness around the O&G industry a few years ago… and despite the last 3 years of “downturn”, remnants of this may even remain in some corners.
With a year of political upheavals in the US and Europe behind us, but predictions of further disruption ahead, what is the outlook for companies in the African energy space?
While previous industry revolutions gave industry new tools, the fourth revolution gives us new knowledge. Every day, the keeper of this knowledge – the internet of things – is adding five million new devices (we’ll go from today’s 8 billion connected devices to a trillion by 2030).
International oil and gas companies have long had difficulty reconciling the long-term and high-cost investments demanded by the upstream oil and gas business with the shorter term thresholds and measures adopted by the equity and debt markets.
In November 2017, the Oil & Gas Council was back in Lagos to hold the Nigeria Assembly for the 3rd time. Over the course of the Assembly, a number of key themes emerged from our speakers and attendees alike which we would like to share with the wider network.
The oil industry is suffering from its deepest down turn and many commentators1 are now claiming crude may never recover to above $100/bbl. The industry is facing its longest down turn ever or, could it simply be an inflection point? So how have we got here and what have we learned so far?
The world has a growing population, increasing from 7 billion to 9 billion people by mid-century, with a higher expectation and affordability for their quality of life. Of these 9 billion people, more than half will live in Asia. This will drive higher energy consumption for decades to come, even with improvements in efficiency.
At the same time governments, businesses and society want this higher energy supply to come with less CO2.
At the United Nations Summit last year, heads of government reached a deal to keep “global average temperature to well below 2°C above pre-industrial levels”.
I would expect JV counterparty distress to become a major challenge in a sustained low-price environment, as some players in the industry face a very real insolvency risk. This issue is particularly relevant in the context of joint operating agreements, where one party enters into an insolvency process. A significant number of small to mid-cap players which have been very active in Africa and other developing markets are going to be squeezed between work commitments under their PSCs and a dearth of debt/equity financing.
The current remaining unconventional gas reserves is approximately equal with the estimated conventional gas resources of around 138 TCF. This is based on ~120 Coal Bed Methane (CBM) wells currently drilled in Indonesia. As more wells are drilled, we expect unconventional gas resources move closer to the estimated gas in place of 453 TCF. Rising national energy demand coupled with declining conventional gas production have significantly increased the role unconventional gas (CBM) will play to fulfil clean energy demand in Indonesia.
Asia is one of the most dynamic regions in the global energy sector. Several factors including robust economic progress and demographic advancement have led to incredible growth over the last few years, with expectations of continued high demand in the short-, medium- and long-term. China has been the main market of energy growth. Across Asia the electrification of the region’s rural population will be the main driver for energy demand.
Mexico Power Day is the Clean Energy stream of the Mexico Energy Assembly. It gives access to off-record insights in an exclusive C-Level environment, with no press and no sales pitches. Find out what we learned.