Structural burdens will weigh on Ghana's energy sector

2017 ◽  
Keyword(s):  
Oil And Gas ◽  
Energy Sector ◽  
Domestic Demand ◽  
Oil Price ◽  
Content Type ◽  
The Government ◽  
Power Project ◽  
Budget Shortfalls ◽  
Gas Supply ◽  
Internal Debt

Subject Ghanaian oil and gas prospects Significance On May 20, Italy's Eni announced the start of oil production from the Sankofa development, to be followed by gas in 2018. The Ghanaian government also plans to increase gas imports, but this is only part of the solution to a complex set of energy sector problems. President Nana Akufo-Addo's new administration faces significant challenges clearing internal debt and meeting domestic demand while also dealing with larger-than-expected budget shortfalls. Impacts The government will prioritise the large number of power project agreements signed by its predecessor. Further exploration in Ghana and Ivory Coast’s deep water will depend largely on the oil price. More domestic gas supply could help bring down Ghana’s high electricity tariffs.

Iraq to boost oil and gas, but not end Iran reliance

2019 ◽  
Keyword(s):  
Oil And Gas ◽  
Energy Sector ◽  
Oil Field ◽  
Electricity Supply ◽  
Infrastructure Projects ◽  
Content Type ◽  
Field Development ◽  
Oil Field Development ◽  
The Government

Significance The government is pressing ahead with key developments in the energy sector. These include attempts to boost electricity supply and reduce dependence on Iranian gas and power. Impacts Washington will continue supplying sanctions waivers, fearing the effects of instability. Compliance with OPEC cuts will be weak. Cooperation on exports of Kirkuk oil to Turkey via the Kurdistan pipeline may expand. New oil field development and infrastructure projects will not have a significant impact this year.

Algerian efforts to reduce imports lack conviction

2015 ◽  
Keyword(s):  
Oil And Gas ◽  
Oil Prices ◽  
Balance Of Power ◽  
Political Elite ◽  
Oil Price ◽  
The Political ◽  
Political Will ◽  
Content Type ◽  
The Social ◽  
The Government

Subject The car import debate and dynamics of the social contract. Significance A longstanding weakness of the Algerian economy has been its overdependence on oil and gas for income, and on imports for consumption. The risks of this dependence were exposed when oil prices halved in the final quarter of 2014. The government has responded by trying to revive investment in both the oil and non-oil economy, and by seeking to curb imports. One important aspect of this latter policy -- new restrictions on car imports -- has sparked significant public debate and raised questions about the government's competence and political will. Impacts If the oil price sustains its recent rally to 60-65 dollars per barrel, the government will have some time to adjust. It would also allow the political elite to maintain the current balance of power. Algeria will not close its markets to foreign imports so long as it continues to seek WTO membership.

Pandemic will blunt impact of China’s energy reforms

2020 ◽  
Keyword(s):  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Energy Sector ◽  
Carbon Markets ◽  
Gas Industry ◽  
Content Type ◽  
Blunt Impact ◽  
The Government ◽  
Energy Law

Subject Reform of China's energy sector. Significance The government has recently taken steps to reform China’s energy sector, diversify the number of actors and increase the role of market forces. However, the state retains a dominant position in the sector. Impacts It could still be many years before the draft Energy Law of 2020 is formally adopted into law. Measures to open up the oil and gas industry are likely to have little effect, especially at a time of low oil and gas prices. New electricity and carbon markets will not achieve their potential in terms of economic efficiency and emissions reduction for many years.

Oil will drive record Guyana growth again in 2022

2021 ◽  
Keyword(s):  
Climate Change ◽  
Oil And Gas ◽  
National Development ◽  
Oil Industry ◽  
Medium Term ◽  
Content Type ◽  
Development Plans ◽  
The Government ◽  
Wage Increases ◽  
Oil And Gas Sector

Significance As in 2020 and 2021, this projected growth will be driven by the ongoing expansion of the oil and gas sector, and related investment and state revenues. These rising revenues will support the government’s ambitious national development plans, which include both increased social and infrastructure spending. Impacts The government will prioritise enhancing the oil and gas investment framework. Investment into joint oil and gas infrastructure with Suriname will benefit the growing oil industry in both countries. The expansionary fiscal policy may lead to a rise in inflation, leading to further calls for wage increases. In the medium term, strong growth in the oil and gas sector could lead to increased climate change activism in the country.

The Economics of Oil and Gas Supply in the State of Texas

2018 ◽  
Vol 3 (01) ◽  
Author(s):  
Jashandeep Singh ◽  
Erick C Jones
Keyword(s):  
Federal Reserve ◽  
Oil And Gas ◽  
Oil Production ◽  
The State ◽  
Oil Price ◽  
Federal Reserve Bank ◽  
Reserve Bank ◽  
The Cost ◽  
Gas Supply

he Federal Reserve Bank of Dallas’s analysts claim that a 45% decrease in the oil price (From $100/Barrel to ~$55/Barrel) can reduce the payrolls of Texas by $125,000, even if everything else stays the same. As every industry is dependent on oil in this era, the cost of oil can dramatically impact the performance of any industry. But if we are able to reduce the cost of oil production, we can keep every industry under control.

Indonesian energy reform eyes public-private balance

2015 ◽  
Keyword(s):  
Oil And Gas ◽  
Local Level ◽  
National Level ◽  
Content Type ◽  
Resource Endowment ◽  
Gas Market ◽  
The Government ◽  
Private Investors ◽  
Energy Assets ◽  
Oil And Gas Sector

Subject Proposed reforms in the oil and gas sector. Significance In the face of strong resource nationalism, President Joko 'Jokowi' Widodo's government faces strong pressure to improve the balance between public control and private participation in the oil and gas sector. To that end, the government proposes to amend the 2001 oil and gas law. Its draft amendment proposes, most notably, that state enterprises should control all production operations, while private investors provide technology and capital. The government is also considering revisions to the upstream regime, which is currently based on production-sharing contracts (PSCs). These changes require parliamentary approval. Impacts Private firms, especially foreign ones, are likely to delay fresh investment in energy assets, given the oil and gas market glut. Indonesia's vast natural resource endowment will attract private interest, but regulatory uncertainty will be an abiding problem. Transparency in the extractive sector will continue to rise at the national level, but local level reforms will be slow.

Low oil prices put pressure on China's energy policy

2015 ◽  
Keyword(s):  
Oil And Gas ◽  
Oil Prices ◽  
International Market ◽  
Domestic Demand ◽  
Energy Prices ◽  
Content Type ◽  
Oil Companies ◽  
National Oil Companies ◽  
Financial Pressure ◽  
Difficult Time

Subject Effect of low oil prices on China. Significance China is the world's second-largest oil user and imports nearly 60% of its annual requirements. If oil prices remain below 50 dollars per barrel, China's import bill for crude oil will fall by tens of billions of dollars in 2015, while the national oil companies (NOCs) face a difficult time as their profits from oil production are squeezed. However, the consequences are not straightforward due to the government's role in setting energy prices and the mix of commercial and state objectives of the NOCs. Impacts Financial pressure on China's NOCs will not be as great as on their international counterparts. The NOCs are likely to embark on a spree of buying overseas oil and gas assets. With contracted gas supplies exceeding domestic demand, Chinese LNG importers will sell surplus on the international market.

Mexico's shale ambitions will have to wait

2016 ◽  
Keyword(s):  
Economic Development ◽  
High Risk ◽  
Oil And Gas ◽  
Oil Industry ◽  
Oil Price ◽  
Tight Oil ◽  
Shale Oil ◽  
Content Type ◽  
Oil Companies ◽  
Growing Crop

Subject Mexico's massive untapped shale oil and gas reserves. Significance Mexico has enough 'tight oil' and gas reserves to make the country energy independent again, according to some estimates. However, finding and developing those reserves will be a long, costly and high-risk endeavour. Unfortunately for Mexico's energy policymakers, the oil price crash has sapped the industry's appetite and ability to take on the challenge. It will be years before Mexico's shale industry regains the momentum that had started to build before the oil industry downturn. Impacts Mexico will grow increasingly reliant on US natural gas imports, providing opportunities for pipeline and other infrastructure builders. Shale development could bring economic development to some of Mexico's poorest regions. A growing crop of domestic oil companies stands to gain from tight oil production.

Monetary easing may quicken in Brazil this year

2017 ◽  
Keyword(s):  
Monetary Policy ◽  
Interest Rate ◽  
Interest Rates ◽  
Economic Recession ◽  
Government Debt ◽  
Domestic Demand ◽  
Private Debt ◽  
Content Type ◽  
Positive Effects ◽  
The Government

Significance At its first meeting of 2017, on January 10-11, the COPOM reduced the benchmark Selic interest rate to 13%. The 75-basis-point (bp) rate cut decision, the largest in nearly five years, accelerated the monetary easing cycle that started in October 2016. Economic recession has been relieving inflationary pressures and opening room for more intense cuts in interest rates. Impacts Further reductions of interest rates may contribute to controlling government debt. Private debt renegotiations at lower interest rates may facilitate a recovery in domestic demand and output. Any positive effects of monetary policy on activity may help contain popular dissatisfaction with the government.

Pressure will mount on Mexico's external sector

2016 ◽  
Keyword(s):  
Negative Impact ◽  
Oil Prices ◽  
Oil Price ◽  
Content Type ◽  
Credit Line ◽  
Growth Firms ◽  
Floating Exchange Rate ◽  
Fiscal Revenue ◽  
The Government ◽  
External Sector

Subject Mexico's external accounts. Significance The plunge in global oil prices represents a significant blow to the Mexican economy, particularly in terms of fiscal revenue. However, a negative impact is also showing in Mexico's external accounts. Moreover, manufacturing exports are contracting, partly due to problems in the automotive sector. Mexico's floating exchange rate is acting as an effective cushion, and its level of international reserves remains comfortable. Nonetheless, the growing external deficits may spark greater uncertainty about the economy's prospects. Impacts If market confidence deteriorates further, the government may activate the 65-billion-dollar Flexible Credit Line that it has with the IMF. The peso should rebound from the all-time nominal lows it has reached, but only after US growth firms up and the oil price stabilises. Despite the increasing external deficits, the government will not introduce protectionist measures and the opposition will not demand them.

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