Industry expert Peter Gaffney warned the oil and gas industry not to begin decommissioning in the North Sea too early as oil prices decline. The co-founder of Gaffeny Cline & Associates was in Aberdeen to speak at an event which sees more than 200 delegates fro across the world come together. He sat down with Energy Voice during the Aberdeen - Houston Gateway to discuss where he sees the industry heading as it rebounds from declining prices and higher production costs.
Energy specialist corporate finance firm Simmons & Company International said measures taken by the UK Government have fallen short of the 'radical shot in the arm' the UKCS (UK Continental Shelf) needs. The company said the changes were a move in the right direction, but said the North Sea oil and gas industry still faces higher levels of taxations compared to other industries. Changes include a 10% reduction in the supplementary charge, while the PRT (Petroleum Revenue Tax) is also set to be reduced from 50% to 35% to support continued production in older fields.
The oil and gas industry could be set for a year of mergers and acquisitions following a rapid fall in prices, it has been forecast. Business consultants PricewaterhouseCoopers (PwC) said 2015 might even see the first “hostile takeover” in the sector in living memory. The oil price has fallen from 115 US dollars (£73) a barrel in the middle of this year to around 60 dollars (£38). Teams working at PwC set out their top five predictions for the year ahead against such a backdrop.
Professional services firm PwC said the oil and gas industry will need to adapt to the new level of volatility within the sector. The company’s oil and gas team said there was little expectation of a rapid rebound in oil prices, which have dropped by 46% in the past six months. From more than $100 a barrel, the price of Brent Crude has dropped to around $60. PwC have made five predictions for the years ahead in the wake of the industry’s current climate.
As 2014 draws to a dramatic close for the industry, Energy Voice reflects on milestone events that fuelled a hectic year. In the first of a three part series we look back at some of the game changers within the industry. Later this week, we'll look at some of the highlights and defining moments in the months leading up to the Scottish referendum.
Global oil and gas exploration projects worth more than £95billion are likely to be put on hold next year as plunging oil prices render them uneconomic, new figures show. The shelving of developments around the world could put a severe constraint on supplies by the end of the decade, it is feared. As big oil fields that were discovered decades ago begin to deplete oil companies are trying to access more complex and hard-to-reach fields, which in some cases are deep under sea level.
The 2014 Press and Journal Energy Ball once again lived up to its reputation as the premier night of the region’s social calendar.