Meta: In the oil and gas industry, Industrial Internet of Things-driven solutions can increase the productivity of drilling and extraction operations by 30% by turning the data from multiple geographically distributed oil wells into informative insights about wells’ performance.
Volatile oil prices are hindering global M&A deals by creating uncertainty, widening the asset valuation gap between buyer and seller, and making companies re-think their strategies, analysts said.
Signs of improved execution show that companies are finally getting it right after a “dismal period” on upstream project returns, according to Wood Mackenzie.
Analysts Wood Mackenzie say around 30 major oil and gas projects are expected to reach final investment decisions (FIDs) this year.
The number of upstream projects sanctioned globally is on course to double this year as the sector’s recovery continues, an energy consultancy has said.
BP plans to bring seven projects onstream in 2017.
Global oilfield services firm Wood Group will focus on offshore upstream and US onshore shale projects as growth markets for 2017.
Oil major Chevron said its budget for next year will see a reduction of 42% from 2015 and is expected to be at least 15% lower than projected investments for 2016.
Shell has sold its stake in the UK North Sea Maclure oil and gas field to Nobel Upstream.
Centrica has recruited a new head for its upstream business. Chris Cox will lead the Scottish Gas-owner's exploration & production (E&P) business, which is one of the largest producers of natural gas in the UK.
Moody’s said as commodity prices continue to slide, the global oil and gas industry will reduce capital spending and work towards leaner budgets this year. The investor’s service said lower commodity prices have led to deterioration in cash flows and liquidity, which has strained the already limited financial flexibility of oil and gas companies.
A global decline in the oil price since last year may have hindered upstream business in regions such as the UKCS. But for Hungary's MOL Group, the lower oil price has prompted an unexpected boost in its downstream operations. David Pullan, group downstream development senior vice president for the company, told delegates at the Central Eastern Europe and Turkey Refinery Summit in Budapest his side of the business had seen "very good" results. In the third part of our week long series from MOL's headquarters in Hungary, we look to its successes in its downstream business.