Ive been getting a lot of pms for this primer so i thought i upload it here. Ngls are hydrocarbons in the same family of molecules as natural gas and crude oil, composed exclusively of carbon and hydrogen. Exports of energy are rising while imports are falling. The oil and natural gas industry is massive because it has to be to. In our view, the volume of marketed natural gas will remain unchanged as compared to 2019, maintaining the level of 7. This reader covers basic information about oil and gas and the industry that extracts them. Vision 2040 global scenarios for the oil and gas industry deloitte. The most oil is produced between the temperatures of 60 and 120 c, a temperature range known as the oil window. However, for our industry to realize this potential in full, a number of economic, social and geopolitical factors that influence the oil and gas sector globally need to. The industry is responsible for 72% of global oil demand today. Although the oil and gas industry has always been volatile, there. The predictions of peak oil were both right and wrong. Credit suisse global energy research team oil and gas.
One of the major new processes is hydraulic fracturing, or fracking, which allows companies to. Transforming safety by improving hazard sensitivity. Jan 17, 2019 the oil venezuela, for instance, sends to china to repay its loans or cover interest payments may count against global oil production figures, but it is hardly available for global consumption. Historical overview of the global oil and gas industry. From individual savings to nationwide energy security, the natural gas and oil industry has set the country on a sustainable course towards a brilliant future. The collapse in oil prices led us to revise our oil production forecast for 2020 in colombia. Natural gas production in the appalachian region yields an added benefit in the form of natural gas liquids ngls. The oil and gas found in the ground come in different grades or qualities. Modification to the methodology of the select sector indices april 25, 2019 at 5.
The index is designed to measure the stock performance of u. Historically, we know the tales of eternal fires where oil and gas seeps ignited and burned. The content is based on information current to 1 january 2016, unless otherwise indicated in the text of the chapter. Despite tehrans attempts to diversify the economy, the oil and gas industry is still the critical engine of economic growth. Oil has been used for lighting purposes for many thousands of years. The enormous economic contribution of the oil and gas industry to many national economies makes its future of critical importance to the global community. Worldwide oil and gas professional services 2016 vendor assessment august 2016. The electric power industry the backbone ois f americas economic sectors, generating the energy that empowers its people and businessesin global commerce.
The oil and gas industry natural resource governance. Prices through 2035 are included for key hubs henry hub, ttf and japan as well as indicative oilindexed contract prices for europe and asia. Short takes from our experts on the oil and gas industry. In areas where oil is found in shallow reservoirs, seeps of crude oil or gas may naturally develop, and some oil could simply be collected from seepage or tar ponds. New technology has made it profitable to extract oil and gas from new places when prices are high. Oil and gas trends 2019 part of pwc s 22nd annual global ceo survey trends series building growth strategies on shifting sands. A survey of the literature on local content policies in the oil and gas industry in east africa chilenye nwapi summary although oil and gas exploration has been going on in east africa for decades, until recently exploration activities grew more slowly compared to other regions in africa. Apis graphics primer on important industry issues spanning global economics and oil markets, natural gas markets and key factors to sustain and grow americas natural gas and oil revolution. Canadas oil and gas industry is a global innov ator in equipment supporting the explor tion, extraction, and processing of hydrocarbon reserves both onshore and offshore. Evolving energy demand and pricing outlooks are transforming the oil and gas industry. Companies in the technology sector must address the risks and disruptive potential of their products and services. The oil and gas industry overview and trends nrgi reader april 2015 this reader is intended for use in conjunction with the natural resource charter.
The oil and gas sector is teeming with complicated terminology that can overwhelm investors new to the space. But few companies are fully harnessing the power of digitalization. Amid fluctuating prices, the global demand for energy, including oil and gas, is increasing. Lighter crude can be refined into higher value products, such as the gasoline or petrol used. From weakening economic growth and intensifying trade tensions to global political risks, our 2020 oil and gas industry outlook takes stock of the main factors to watch in 2020.
Transportation, water, emergency services, telecommunications, and manufacturingrepresent only a few of power grids the critical downstream dependencies. Liquefied natural gas developments and market impacts. Our flagship business publication has been defining and informing the seniormanagement agenda since 1964. As supply increases and oil prices rise, volatility will continue to drive strategy. Oil production has been constrained in relation to demand for the past decade, with a. Understanding the oil market an industry primer with.
For example, under high oil and gas resource case assumptions in the aeo2014, which. Other includes onshore conventional, heavy oil, unconventional gas and excludes. Ethane, propane, butane, isobutane, and natural gasoline pentanes plus are all ngls. The global oil and gas tax guide summarizes the oil and gas corporate tax regimes in 86 countries and also provides a directory of ey oil and gas tax and legal contacts. Organization of the petroleum exporting countries opec andor its member countries concerning the legal. In 1908, iran was the first country in the persian gulf to discover oil. The oil price continued to rise in 1h 2018 yet a q4 2018 renewed supply. If a reservoir contains both oil and gas, the gas it contains is called associated gas.
That is because the cheapest way to transport natural gas is by pipeline. The purpose of this paper is to consider the future of the oil and gas industry and the profound challenges that it is facing. Building growth strategies on shifting sands although the oil and gas industry has always been volatile, there was nonetheless a comfortable predictability to the boom and bust pendulum. Dow jones sector titans indices consultation on industry. This book examines the ways that oil economics will impact the rapidly changing global economy, and the oil industry itself, over the coming decades. Powering our insights with data and advanced analytics. A new standalone report for the h12018 global gas service the attached excel file provides wood mackenzies h12018 global gas and lng price outlook. Commodity econg thermal coal commodity primer commodity econg oil commodity primer commodity econg u. It is an overview of the main processes and equipment. December 2019 safety analytics derived from virtualreality data can quantify workers. The economics of oil a primer including geology, energy.
The leidos global natural gas markets overview has three sections. One of the major new processes is hydraulic fracturing, or fracking, which allows companies to extract shale oil and gas. Petroleum engineering in nontechnical language by norman hyne 5. Havard devold oil and gas production handbook an introduction. The revolution is the product of advances in oil and natural gas production technologynotably horizontal drilling and hydraulic fracturing. Understanding the oil market an industry primer with breakdown of recent trends by segment. An introduction to global natural gas markets, drivers, and theory for the u. Oil and gas production handbook an introduction to oil. If you continue browsing the site, you agree to the use of cookies on this website. Just how much oil is traded away from global commodity markets is hard to tell, but an estimate of 20 percent seems plausible.
The question of how recent developments in the oil and gas industry should affect u. Kpmgs global oil and gas practice was named a leader in oil and gas professional services in the idc marketscape. Vision 2040 global scenarios for the oil and gas industry 5 how to read the study few areas of the economy are as volatile literally and figuratively as the oil and gas sector. Nationally owned oil companies are the largest players in the industry.
Understanding the oil and gas industrys current financial weaknessand how the industry so quickly moved from strength to fragilityrequires some foundational knowledge in two areas. Energy information administration prepared by leidos, inc. Canada is an ideal destination for oil and gas companies. Oil and gas is a very dataintensive industry, but much of the information being captured and stored is unstructuredwhich comes at a cost.
Analysis of the current problems of russias oil and gas industry in the context of the main trends of global oil and. This is the seventh year that we have conducted our survey and our goal is to provide you with an informed view of global and regional trends in employment, compensation and benefits within the oil and gas industry, while identifying some of the. Oct 11, 2010 in 1908, iran was the first country in the persian gulf to discover oil. Mckinsey global institute our mission is to help leaders in multiple sectors develop a deeper understanding of the global economy. Industry giants such as royal dutch shell plc, chevron corporation, exxon mobil corporation and sasol are already here. The multiplicity of factors that influence the directions of the petroleum production chain is huge, making the task of preparing strategies and action plans.
The primary way to describe the quality of oil is in terms of its sweetness and heaviness. Finally, chapter iv provides an overview of the history of opec, explaining. Credit suisse global energy research team oil and gas primer. Timing between the two components can take years and usually does. More effective management of this data could reduce risks for companies and help them boost the bottom line. Natural gas commodity primer topic besgg activist investing topic primer topic advtg advertising agency rebate issue topic primer topic autmn auto leasing growth topic primer topic ibnkg bank energy risk topic primer. In addition to these developments, high global oil prices also played a role in spurring investment in shale production. The place where oil and gas are cooked out of the rocks is called kitchen. Oil and gas sector activities canadas advantages a wealth of opportunities 1 natural resources canada. The first section provides a summary of the global natural gas market with respect to worldwide supply, demand, and prices. The sector requires new business models, rationalized portfolios, accelerated investment in digital technologies and greater capital flexibility. Build a strong investment knowledge base with the cfa institute oil and gas industry guide.
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