Is the golden age of the oil and gas industry almost over? ...
Looking at the downturn in global oil prices it might seem that way for Australia.
Oil and gas companies are reporting losses, the industry is shedding jobs and oil prices continue to
decline.
Production was 7% up for the year but because of the lower crude prices, profits are down according to Santos, as they posted a 99% fall in profits for the 12 months to December 2015. The dramatic fall in profit also includes write downs on various assets of A$3.92bn over the year, according to the BBC.
They're not the only ones!
Recently the BBC reported that Woodside put its dramatic decline in profits down to the global fall in oil prices (down by over 45% in 2015).
Is this a case of price fluctuations due to global political manoeuvring, inappropriate regulation crippling the industry in Australia, or is the oil age coming to an end because of a lack of demand?
Royal Dutch Shell is laying off thousands of workers and its chief executive is preparing the company to try and be profitable if there is an extended period of low oil prices according to City A.M. If you look at all the major oil and gas players, in Australia they have shed a good number of employees, according to Peter Botten, Managing director of the Australian listed Oil Search, in an interview with the ABC. He says that a quarter of the oil and gas industry jobs have gone (during 2015) based on numbers of employees employed directly by oil and gas companies.
A year ago, the news of world oil price falls were shocking (as oil prices fell from over $100 to around $50 a barrel). Because there was so much being pumped out of the ground and not enough industrial demand in the world to use it all – people thought this dip in prices would be temporary.
But those hopes have now faded!
Some cmmentators have projected that thirty years from now there will be a huge amount of oil – and no buyers.
Oil will be left in the ground.
The Stone Age came to an end, not because we had a lack of stones, and the oil age will come to an end not because we have a lack of oil.
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Note: How is the global crude price decided? Brent crude has overtaken WTI as the global crude price index, as Energy and Capital Explains. International benchmark Brent crude this morning is up by around two per cent at $33.08, however US West Texas Intermediate jumped by over over four per cent to $32.84, up from under $30 at the close of oil trading on Friday 19th February 2016, according to City A.M. comparing the current price comparing the two benchmarks.
Blogs/Links:
Oil and Gas Investor
The Barrel Blog
The Oil and Gas Journal has a good list of blogs
A list of the 6 Best Oil and Gas Websites
The Oil Drum Discussion page
Commodity HQ has a list of 7 crude oil trading blogs
SherWare has a list of 5 favourite blogs
Peter Leeds has a list of Oil and Gas Blogs and News websites
Is this a case of price fluctuations due to global political manoeuvring, inappropriate regulation crippling the industry in Australia, or is the oil age coming to an end because of a lack of demand?
Royal Dutch Shell is laying off thousands of workers and its chief executive is preparing the company to try and be profitable if there is an extended period of low oil prices according to City A.M. If you look at all the major oil and gas players, in Australia they have shed a good number of employees, according to Peter Botten, Managing director of the Australian listed Oil Search, in an interview with the ABC. He says that a quarter of the oil and gas industry jobs have gone (during 2015) based on numbers of employees employed directly by oil and gas companies.
A year ago, the news of world oil price falls were shocking (as oil prices fell from over $100 to around $50 a barrel). Because there was so much being pumped out of the ground and not enough industrial demand in the world to use it all – people thought this dip in prices would be temporary.
But those hopes have now faded!
Some cmmentators have projected that thirty years from now there will be a huge amount of oil – and no buyers.
Oil will be left in the ground.
The Stone Age came to an end, not because we had a lack of stones, and the oil age will come to an end not because we have a lack of oil.
-------------------------------------------------------------------------------------------------------------------------
Note: How is the global crude price decided? Brent crude has overtaken WTI as the global crude price index, as Energy and Capital Explains. International benchmark Brent crude this morning is up by around two per cent at $33.08, however US West Texas Intermediate jumped by over over four per cent to $32.84, up from under $30 at the close of oil trading on Friday 19th February 2016, according to City A.M. comparing the current price comparing the two benchmarks.
Blogs/Links:
Oil and Gas Investor
The Barrel Blog
The Oil and Gas Journal has a good list of blogs
A list of the 6 Best Oil and Gas Websites
The Oil Drum Discussion page
Commodity HQ has a list of 7 crude oil trading blogs
SherWare has a list of 5 favourite blogs
Peter Leeds has a list of Oil and Gas Blogs and News websites
