Fail Fast, but Learn Faster – Going Global, Alberta!

  Today, Alberta carries a sustained budget deficit of $10.64b (FP, GoA), at about 10% unemployment rate, and Calgary, once the fastest growing city in Canada sits at 30% office vacancy rate and 7% residential vacancy rate (25Y all time high). The question is that will Calgary become like Detroit? Has Canadian oil and gas […]

What Do You Know About The IPC By-Law?

On 3 August 2016, the Council of Ministers of Iran approved a document described as the by-law governing the IPCs (the “By-law”). It should be noted that the By-law approved is not the Iran Petroleum Contract (the “IPC”). The IPC is still being finalised by the National Iranian Oil Company (the “NIOC”). The By-law was […]

Aramco Going Public? Where is the Catch?!

What is Saudis agenda of taking Aramco public? Saudi’s are not pleased with gradual shift of foreign policy of the US in the Middle East and in particular West’s recent agreement on containment of Iran’s nuclear ambitions (JCPOA). Once US’s strongest ally, Saudis see this as a shift towards strengthening Shia’s state in different fronts including […]

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 […]

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 […]

Canadian Oil sands; Suncor, Cenovus, and CNRL; Strategy Lessons to Share.

What strategy have the major oil sands players hired? lessons learned from oil sands pioneers. Despite of a low political and social risk environment, Canadian oil sands is still under pressure. This is while a handful number of pipeline projects are at negotiation stage to provide higher takeaway capacity. The heavy differential has narrowed from highs […]

Culture Eats Strategy for Breakfast!

How organizational culture can be the biggest risk to strategy implementation, and how to mitigate it. Upstream companies are distressed to improve their net profit. They have each formulated an strategy, but how supportive are their culture to those strategies. Their bottom line next year will largely be determined by their current strategies and success of their […]

Do You Play to Win – or to Not Lose?

How organizational culture makes you behave when targeting a goal. I came across this article with HBR and thought that you may find it interesting. The concept is simple, yet very profound. It discusses two different styles that an individual, a team , or an organization may take (often naturally) towards targeting a goal or overcoming […]

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