Are We Heading Down to a Double-Dip?

The commodity price violation has two sides. One side is the economics of supply-demand, and the other side few wild cards that can surprise the market over night! You need a magic ball to forecast the oil price and guess whether we have passed the bottom or not. Quite a few investment bankers foresee a […]

The Impact of Oil Price Plunge on Global Regime Attractiveness

One of the impacts of the global oil price plunge in 2015 is on the relative attractiveness of some host countries versus others. The following is a brief review on recent analysis by Palantir which was presented in SPE Calgary chapter (see the full report here). The assumptions: Medium Oilfield 100 million bbls; lifting cost […]

How Can You Do More With Less?! Survival Strategies for Capital Projects in Low Oil Price Environment

The plummeted oil price environment provides a great opportunity for growth through acquisition. Oil and gas companies (especially NOCs) are busy with screening opportunities and targeting those which can improve the value of their portfolio. Taking the advantage of current oil price environment (WTI $50/bbl, Jan 2015) may not be easy for oil sands players in […]

Will $80/bbl Oil Bring more Mergers, or more Spin-Offs?

Shrinking profits for whatever reason, can stimulate the M&A activity in any industry. We still remember consolidations in upstream sector following oil price crash in 1999, but what will happen this time if the oil price stays in the $80-$90 range, say for 6-12 month? Should we expect consolidations, or more spin-offs? According to EIA “shortfall between cash earnings […]

Interface and Integration Management in Major Capital Projects

Interface and Integration Management in Major Capital Projects; Why, Who, When and How? Why did I put Interface and Integration Management at the same level; frankly because in my experience although interface management is part of integration management, the weight of interface management is so significant to the success of project integration. Both are voted among top […]

Good, Bad and Ugly; World Energy Investment Outlook 2014

How can world invest wiser on energy? Problems, risks and opportunities in 2014-2035 world energy investment outlook.   Bad (I know, bad comes first here!) According to IEA in World Energy Investment Outlook 2014, 80% of  upstream oil & gas investment offsets output declines at today’s fields. Also one-third of power generation investment is to replace plants […]

How to Mitigate the Risk of Value Loss in E&P Mega-Projects (Project Risk)

How to mitigate the risk of value loss in E&P mega-projects; Oil and Gas project economics. In a keynote presentation at the 2014 Offshore Technology conference (OTC) in Houston, Texas, IPA Manager of Exploration & Production Neeraj Nandurdikar argued that in the last decade poor project execution and/or poor project selection practices have led to a […]