Tanzania’s oil and gas sector faces mixed outlook

2020 ◽  
Keyword(s):  
Oil And Gas ◽  
Oil Prices ◽  
Investment Strategies ◽  
Political Will ◽  
Content Type ◽  
Oil Companies ◽  
Doing Business ◽  
Regulatory Uncertainty ◽  
Oil And Gas Sector

Significance However, years of delays, regulatory uncertainty and a lack of political will -- compounded more recently by depressed global oil prices and the global slowdown caused by COVID-19 -- have seen many projects stall. Impacts Marginal projects may suffer as oil companies assess their investment strategies amid depressed oil prices and a global economic slowdown. The complexity of doing business may prove a serious impediment to finalising long-term investments, especially under Magufuli. Sustained delays in developing extractives projects are likely to feature heavily in opposition election campaign talking points.

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.

Petroleum investors could cut their losses in Yemen

2017 ◽  
Keyword(s):  
Civil War ◽  
Oil And Gas ◽  
Oil Production ◽  
Liquefied Natural Gas ◽  
Solar Panels ◽  
Content Type ◽  
Remote Areas ◽  
Post Conflict ◽  
Oil And Gas Sector

Subject Yemeni oil production. Significance The oil and gas sector -- which was in any case in long-term decline, owing to a lack of investment -- suffered serious disruption after civil war broke out in March 2015, with oil, liquefied natural gas (LNG) and refining facilities closed, and ports blockaded to prevent delivery of oil products. The internationally recognised government of President Abd Rabbu Mansour Hadi has renewed efforts to encourage a recovery in oil production since late 2016, but these are hampered by the civil war and lawlessness in remote areas. Impacts Saudi Arabia and the UAE will be the main sources of oil imports, probably on concessional terms. Hydrocarbon exports will not provide sufficient finance for post-conflict reconstruction. Exports of LNG are unlikely to restart before 2020 at the earliest. A crisis of power provision will expand the market for small solar panels.

U.S. oil company stock returns and currency fluctuations

2015 ◽  
Vol 41 (9) ◽  
pp. 974-994 ◽  
Author(s):  
Andre Mollick ◽  
Khoa H Nguyen
Keyword(s):  
Financial Crisis ◽  
Stock Returns ◽  
Structural Breaks ◽  
Oil And Gas ◽  
Global Financial Crisis ◽  
Oil Price ◽  
Content Type ◽  
Oil Companies ◽  
Daily Data ◽  
Oil And Gas Sector

Purpose – The purpose of this is paper is to pay a closer look at the 2008-2009 financial crisis (and its aftermath) and analyzes stock returns of nine major US oil companies as well as the oil and gas sector under daily data from January 1992 to April 2012. Design/methodology/approach – The authors adopt the arbitrage pricing theory model to examine the relationship between stock returns and their influences including oil price return, yield spreads, and US dollar index return. The authors also provide a test for structural changes in each regression model of return series to capture for multiple breaks. To examine the asymmetric effect of oil price returns on stock returns, the authors separate oil price returns series into two series: positive changes in oil price and negative changes in oil price. Findings – The authors find stock returns of oil companies as well as the oil and gas sector are positively affected by oil prices and have stronger effects in the downward direction. Interestingly, The authors find the effects of oil price movements on stock returns increase over time. The authors examine the possibility that investors wishing to hedge against a weakening USD invest in US oil companies and find that more than half of these companies benefit from a weaker USD against the JPY, while all strongly benefit from a weaker USD against major currencies. Originality/value – The authors employ daily data for two-decade period including the last global financial crisis. Due to the long-term period covered in this study, sequential Bai-Perron tests are used to detect structural breaks of stock return series. In addition, the data-dependent procedures result in good specifications throughout with white-noise processes in almost all cases.

Iraqi Kurdistan could see oil and gas advances

2021 ◽  
Keyword(s):  
Oil And Gas ◽  
Oil Prices ◽  
Oil Production ◽  
Content Type ◽  
Oil Companies ◽  
Iraqi Kurdistan ◽  
Oil Sector ◽  
The Government ◽  
Slight Rise

Significance The oil sector managed a slight rise in oil production in 2020, despite the challenges of the pandemic and low oil prices. The KRG mostly managed to keep up payments to oil companies but did not assist Baghdad in making production cuts under the OPEC+ agreement. Impacts Combined new gas projects could meet domestic needs and potentially allow exports by the later 2020s. The government could resume payments of overdue amounts to international oil companies from this month. Talks with Baghdad will become more complex around planned elections in October 2021 and depending on legal developments with Turkey.

Progress in merging India’s oil companies may be slow

2017 ◽  
Keyword(s):  
Energy Security ◽  
Oil And Gas ◽  
Fiscal Year ◽  
Content Type ◽  
Oil Companies ◽  
Energy Company ◽  
Oil And Natural Gas ◽  
Term Energy ◽  
At Home

Subject India's efforts to make state-run oil companies more competitive at home and abroad. Significance India’s Oil and Natural Gas Corporation (ONGC), which specialises in exploration, is set to acquire a majority stake in refiner Hindustan Petroleum Corporation Limited (HPCL) by the end of the fiscal year ending March 2018. The planned consolidation of these two state-owned enterprises (SOEs) reflects the Indian government’s aim of making public sector oil companies more competitive at home and abroad, improving long-term energy security. Impacts India’s oil ministry will become increasingly involved in scrutinising oil companies’ competitiveness domestically and overseas. Any perceived privatisation of the ONGC’s assets could be met with protests by many of its 33,000 employees. The ONGC will in the long term need to diversify into a broader energy company rather than focusing only on oil and gas.

Malaysia’s eastern states will push for more autonomy

2020 ◽  
Keyword(s):  
Federal Government ◽  
Oil And Gas ◽  
Prime Minister ◽  
Negative Impact ◽  
Oil Prices ◽  
The State ◽  
Content Type ◽  
State Economies ◽  
Oil And Gas Sector

Subject Outlook for Sarawak and Sabah states. Significance The Gabungan Parti Sarawak (GPS) alliance, which governs in Sarawak state, supports the Perikatan Nasional (PN) coalition, which earlier this month displaced the Pakatan Harapan (PH) coalition from the federal government upon the appointment of Muhyiddin Yassin as prime minister. The Warisan party, which governs in Sabah state, had supported the PH in the federal parliament. Impacts Steep declines in global oil prices will have a negative impact on state economies in eastern Malaysia. The GPS will seek a greater role for the state-owned Petros in Sarawak’s oil and gas sector. Sarawak expanding control over its oil and gas sector would increase pressure on Sabah to do likewise.

Local demand will Egypt’s sustain gas sector long term

2020 ◽  
Keyword(s):  
Oil Prices ◽  
Side Impact ◽  
Demand Side ◽  
Content Type ◽  
Oil Companies ◽  
Policy Responses ◽  
The Past ◽  
Near Term ◽  
Upstream Investment

Subject Outlook for the Egyptian gas sector. Significance Over the past five years, Egypt’s natural gas sector has seen a dramatic turnaround. However, the demand-side impact of COVID-19 policy responses and the collapse in oil prices are now weighing heavily. Given these challenges, international oil companies (IOCs) are reviewing their investment options. Impacts New upstream investment in the gas sector will be reduced or put on hold. Further drops in domestic gas prices are likely in the near term. Egypt may seek to delay or minimise Israeli gas imports.

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.

Global energy M&A will be limited in 2016

2016 ◽  
Keyword(s):  
Private Equity ◽  
Oil And Gas ◽  
Oil Prices ◽  
Oil And Gas Industry ◽  
Gas Production ◽  
Gas Industry ◽  
Oil And Gas Production ◽  
Content Type ◽  
Oil Companies ◽  
Conventional Oil

Subject Prospects for consolidation in the oil and gas industry. Significance Falling revenues and downward reserve valuations caused by the fall in oil prices are producing merger and acquisition (M&A) opportunities in the oil and gas sector. However, uncertainty about how long oil prices will stay low is keeping bids and offers apart, amid quandaries over which forms of oil and gas production will prove most profitable once prices revive. Impacts Post-bankruptcy restructured companies may be primary targets, given acquirers' unwillingness to take on elevated levels of debt themselves. Mid-cap companies with serviceable debt loads will gain from increased scale; cost reduction capacity will be a source of value. Shale cost reductions suggest that technology and assets in the shale patch will remain attractive to more conventional oil companies. Values of long lead-time projects, such as conventional oil assets in Africa, will suffer. There is substantial firepower available to private equity buyers who are holding out for lower prices prompted by distressed sellers.

Congo-Brazzaville oil discovery should aid industry

2019 ◽  
Keyword(s):  
Oil And Gas ◽  
Content Type ◽  
Political Actors ◽  
Oil Companies ◽  
Potential Development ◽  
Republic Of The Congo ◽  
Environmentally Sensitive ◽  
Congo Brazzaville ◽  
Oil And Gas Sector ◽  
Basin Area

Significance With the government’s finances and governance under renewed scrutiny as a result of a recently agreed IMF bailout, two Congolese companies on August 10 announced a sizable first discovery in the Cuvette basin area. While initial reports may have exaggerated the find’s potential, the announcement highlights some of the challenges facing the country’s oil and gas sector. Impacts News of the find may boost exploration in northern Congo and its neighbours (Democratic Republic of the Congo, Central African Republic). The discovery's location in an environmentally sensitive area will likely pose reputational problems for potential development partners. The IMF deal should bring with it greater scrutiny of state finances, potentially improving governance and reassuring investors. Local political actors will struggle for influence amid tougher anti-corruption and reporting requirements for international oil companies.

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