Prospects for Energy Markets and Investment in Traditional Oil & Gas

2020 ◽  
Vol 1 (2) ◽  
pp. 174-178
Author(s):  
Jon Fitzpatrick ◽  
Andy Hartree
Keyword(s):  
Energy Demand ◽  
Global Economy ◽  
Oil And Gas ◽  
Current Trend ◽  
Oil And Gas Industry ◽  
The Political ◽  
Way Of Life ◽  
Gas Industry ◽  
Behavioural Patterns ◽  
To Come

The oil and gas industry is facing as hostile an environment as it ever has. Already under increasing pressure from a highly vocal environmental lobby, precious sources of capital from all angles were already turning their backs on the industry when COVID-19 struck. The pandemic has provoked a further two-pronged attack on the industry. First, it dealt a huge blow to energy demand, as lock-down grounded economic activity, before driving what are likely to become long-term changes to our behavioural patterns with material consequences on global energy demand. Secondly, and perhaps more worryingly, the COVID-19 experience has given the impression that we can already live without the industry, encouraging the anti-industry lobby yet further. However, we cannot escape the fact that we are set to rely fundamentally on the oil and gas industry for decades to come. The challenge for the industry is in part to react to the reality of the political environment, evolving the way it operates to show it can deliver the necessary ESG-focused goals, but also to demonstrate that the industry remains a fundamental part of our global economy – our way of life: we need the industry, and the industry needs investment. COVID-19 did not start the debate, but has been a massive catalyst in raising the awareness of the issues. Through its direct impact on the economics for the industry, as well as helping increase the political pressure on it, the pandemic has increased the threat the industry faces in trying to fund itself sustainably. While many traditional investors count themselves out, the opportunity is opening up for those who recognise the importance of the industry and are prepared to buck the current trend.

The Political Economy of Power: Approaches to the Analysis of Relationships between the State and Business in Russia

2011 ◽  
pp. 19-33
Author(s):  
A. Oleinik
Keyword(s):  
Oil And Gas ◽  
Road Construction ◽  
Oil And Gas Industry ◽  
Retail Trade ◽  
Business Community ◽  
The Political ◽  
Economic Power ◽  
Gas Industry ◽  
The Road ◽  
Ruling Elites

The article deals with the issues of political and economic power as well as their constellation on the market. The theory of public choice and the theory of public contract are confronted with an approach centered on the power triad. If structured in the power triad, interactions among states representatives, businesses with structural advantages and businesses without structural advantages allow capturing administrative rents. The political power of the ruling elites coexists with economic power of certain members of the business community. The situation in the oil and gas industry, the retail trade and the road construction and operation industry in Russia illustrates key moments in the proposed analysis.

scholarly journals The Oil and Gas ROFR: Understanding Current ROFR Issues from the Point of View of the Transactional Lawyer, the Litigator, and In-House Counsel

2017 ◽  
Author(s):  
Donald G. MacDiarmid ◽  
Sean J. Korney ◽  
Melanie Teetaert ◽  
Julie J.M. Taylor ◽  
Robert Martz ◽  
...  
Keyword(s):  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Point Of View ◽  
Economic Consequences ◽  
Complex Nature ◽  
Gas Industry ◽  
Industry Standard ◽  
The Law ◽  
To Come ◽  
Corporate Lawyers

Rights of first refusal and other preferential or pre-emptive rights (together, ROFRs, and individually a ROFR) routinely find their way into oil and gas industry agreements. Disputes often arise because of the complex nature and significant economic consequences of ROFRs. In recent years, a number of reported cases, either relating directly to ROFRs or more generally relating to contractual interpretation, have clarified (or at times muddied) the waters surrounding the use, application, and interpretation of ROFRs. However, most ROFR disputes never result in a reported decision because the parties typically negotiate solutions long before trial.The authors consider current trends involving ROFRs in oil and gas agreements, and how they believe the law and legal practice surrounding ROFRs might continue to evolve in the years to come. The authors do not attempt to rehash the fundamentals of the law surrounding ROFRs; instead, they focus on how the courts have dealt with ROFRs in recent cases as well as how corporate lawyers and in-house counsel grapple with ROFRs day-today. The authors utilize the ROFR provisions found in industry standard contracts to analyze outstanding areas of uncertainty as well as what lawyers should contemplate prior to including a ROFR in an agreement. Additionally, the article examines the implications of recent rulings on the duty of good faith that may affect ROFRs. Finally, the article considers selected subjects of topical interest, including ROFRs in the context of busted butterfly transactions, insolvency proceedings, and package deals.

Developing vietnam's oil and gas industry in association with energy and economic security in the international integration period

2021 ◽  
Vol 11 ◽  
pp. 55-61
Author(s):  
Thuong San Ngo
Keyword(s):  
Energy Balance ◽  
Energy Demand ◽  
Oil And Gas ◽  
Renewable Resource ◽  
Oil And Gas Industry ◽  
Primary Energy ◽  
Economic Security ◽  
Total Production ◽  
State Budget ◽  
Gas Industry

Oil and gas is a non-renewable resource that plays an important role in the economy. It is forecasted that by the middle of the twenty-first century, oil and gas still holds the leading position in primary energy balance in many countries. The world energy consumption in 2020 was over 4.1 billion tons of oil and 3,853 billion m3 of gas [1]. During 60 years of construction and development, Vietnam's oil and gas industry has made important contributions to the economy, especially helping the country overcome the energy crisis and budget deficit in the 1990s. By the end of 2020, the total production amounted to over 424 million tons of oil and condensate, and over 160 billion m3 of gas; at one time even contributing nearly 30% of the State budget and 22 - 25% of the GDP. Especially, the formation of important coastal petroleum industrial zones and oil and gas projects on the continental shelf have contributed to ensuring national sovereignty and national security. The demand for oil and gas in the energy balance increases rapidly with the speed of socio-economic development. It is forecasted that in the near future, Vietnam will no longer be self-sufficient in supply and must import completely to meet the country's energy demand. In parallel with proactively implementing urgent technical and technological solutions, Vietnam's oil and gas industry needs mechanisms to increase reserves and maintain oil and gas output, as well as prepare the next steps for transition to energy forms with low greenhouse gas emissions and renewable energy.

Energy and Environment

2020 ◽  
pp. 185-206
Author(s):  
Kenneth P. Miller
Keyword(s):  
Renewable Energy ◽  
Global Economy ◽  
Fossil Fuels ◽  
Oil And Gas ◽  
Renewable Energy Sources ◽  
Oil And Gas Industry ◽  
Environmental Policies ◽  
Federal Law ◽  
Gas Industry ◽  
Energy And Environment

This chapter examines the deep Texas-California divide over energy and environmental policies. The modern Texas economy was built on energy, and the state remains the nation’s leading producer. The state’s development of fracking has revolutionized the oil and gas industry and has helped the nation break its dependence on foreign oil. Texas has also increased its production of renewable energy, but believes the global economy will rely for the foreseeable future on fossil fuels and resists restrictions on these resources. California, by contrast, has become a global leader in the fight against climate change. It has aggressively regulated carbon emissions and mandated a massive switch to renewable energy sources. California is the only state that can impose emissions regulations more strict than federal standards. As power has shifted in Washington, California has alternated between translating its environmental policies into federal law and defending its policies from federal challenge.

Interpreter Sam

2019 ◽  
Vol 38 (12) ◽  
pp. 980-980
Keyword(s):  
Human Resources ◽  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Graduate Degree ◽  
Career Goal ◽  
Gas Industry ◽  
Personal Learning ◽  
To Come ◽  
A Company ◽  
Personnel Department

Sam traveled back about two-thirds of a lifetime to see a young man, the proud owner of a newly awarded graduate degree and married for only two weeks, walking into the lobby of the building where he would start his career as a geophysicist in the oil and gas industry. He carried a personalized leather briefcase, a gift from his parents which was very fashionable in those days; he doesn't remember any details of its contents. By his own estimate he was confident, but not too confident, and undoubtedly was much more nervous and apprehensive than he realized at the time. After only a few years and still on a very steep segment of his personal learning curve, he chose to take a position with a different company, necessitating relocation of his family to another state. At his new company a representative of the Personnel department (the language hadn't evolved to Human Resources yet) asked him, “What is your primary career goal?” Instinctively and without hesitation he replied, “I want to be the best geophysicist you have.” He couldn't have imagined how often the substance of his response would motivate and guide him in years to come, nor could he have known at the time that there is no such person as the “best geophysicist” in a company (see Interpreter Sam in the October 2008 issue of TLE). Certainly there is an “only geophysicist” in some companies, but …

scholarly journals Navigating the Quagmire of Oil and Gas Transactions with Income Trusts

2015 ◽  
pp. 163
Author(s):  
Trudy Curran ◽  
Pat Mcguire
Keyword(s):  
Oil And Gas ◽  
Current Trend ◽  
Oil And Gas Industry ◽  
Gas Industry ◽  
Legal Implications ◽  
Income Trusts

This article examines the current trend towards incometrust conversion in the oil and gas industry and the various business and legal implications which arise as a result. Documented is the history ofthe development of the income trust, various methods in which income trusts are managed structures in which they exist, methods ofconversion, and lax treatment. The various implications of income trusts to the oil and gas lawyer are then discussed, with a focus on asset transactions and multi-party deals, as well as the concerns arising for counter parties to a transaction with a trust entity.  Finally, evolving issues affecting income trusts are addressed.

2010 PESA industry review–exploration

2011 ◽  
Vol 51 (1) ◽  
pp. 147
Author(s):  
Ciaran Lavin ◽  
Terry Walker ◽  
Yvette Knowles
Keyword(s):  
Global Economy ◽  
Oil And Gas ◽  
Commodity Prices ◽  
Oil And Gas Industry ◽  
Gas Industry ◽  
Seismic Surveys ◽  
Extensive Coverage ◽  
Primary Driver ◽  
Exploration Drilling ◽  
Northwest Australia

An uncertain global economy, offset by strong commodity prices, provided the backdrop to a subdued yet solid level of exploration activity in 2010. The major loci of activity in the Australian oil and gas industry were the Exmouth Plateau, where exploration for conventional gas in support of LNG projects was the primary driver, and the Bowen/Surat Basin, where coal seam gas (CSG) for LNG was the main target. Onshore permit awards dominated new licensing in 2010, with 31 exploration permits awarded over an area of 190,000 km2. The majority of these permits are focused on unconventional gas exploration. Conversely only 14 exploration permits (30,000 km) were awarded offshore, all in northwest Australia. This historically low level can be related to an already extensive coverage of existing permits in the offshore petroleum provinces and delays in the announcement of acreage awards from the 2009(II) acreage release. Twenty-nine 2D seismic surveys were started in 2010, with three still active at the end of the year. Once completed, the 2010 surveys will total nearly 37,000 km of data, with 76% offshore. Twenty-one 3D seismic surveys commenced in 2010, with six still active at year end. The 2010 surveys will ultimately comprise approximately 29,000 km2 of data, with 95% offshore. Northwest Australia dominated seismic activities. Exploration drilling for conventional hydrocarbon resources was relatively subdued in 2010, with 63 wells spudded, compared to 92 wells in 2008 and 74 in 2009. Of the 49 wildcat wells where results are known, 51% reported hydrocarbon discoveries. This was a little less than the 57% in 2009 and up on the 39% in 2008. The discoveries were distributed across most of the traditional petroleum provinces. High levels of CSG drilling continued in 2010, exceeding 2008 activity but less than that of 2009. At least 648 CSG wells were spudded in 2010, mostly in the new heartland plays of the Bowen/Surat, Gunnedah and Clarence-Moreton basins. This compares with more than 600 CSG wells drilled in 2008 and more than 900 in 2009. The first dedicated Australian shale gas exploration drilling took place in 2010. Emerging shale plays in the Cooper and Perth basins were tested.

Contemporary fiscal issues impacting M&A in the oil and gas sector

2012 ◽  
Vol 52 (1) ◽  
pp. 149
Author(s):  
Kenneth Wee
Keyword(s):  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Regular Feature ◽  
Gas Industry ◽  
Resource Rent ◽  
Petroleum Resource ◽  
Recent Developments ◽  
Australian Economy ◽  
To Come ◽  
Oil And Gas Sector

Ongoing growth in deal activity in the oil and gas industry is one of the critical forces underpinning the sustained robustness of the Australian economy. Australian oil and gas assets continue to attract significant international interest and are actively pursued by global and domestic investors alike. On the supply side, exploration players are seeking the necessary funding and technical support to commercialise prospective oil and gas discoveries, while on the demand side, major established oil and gas companies are seeking to acquire viable targets as a means of rapidly replenishing their reserves. Consequently, merger and acquisition (M&A) deals and asset trades have become a regular feature of the corporate oil and gas scene in Australia. In time to come, a wave of industry consolidation is likely to emerge. This paper discusses key fiscal aspects of M&A transactions, as affected by recent developments in the Australian taxation landscape, and their impact on the overall economics of, and extracting value from, an investment in the oil and gas sector, including: the taxation of farm-in/farm-out arrangements, asset swaps and carry arrangements; structuring the deal consideration for fiscal efficiency; takeover and acquisition vehicle structures; the M&A issues associated with the extension of the Petroleum Resource Rent Tax (PRRT) to the onshore oil and gas industry; consideration associated with capital management, capital structure and financing trends for the industry; exit and repatriation routes—do all roads lead to tax?; managing transaction costs; and, managing tax risks in M&A deals.

Survive, Revive, Thrive: Chapter 5: Steering by the Stars

2021 ◽  
Vol 73 (02) ◽  
pp. 8-9
Author(s):  
Tom Blasingame
Keyword(s):  
Global Economy ◽  
Oil And Gas ◽  
Essential Element ◽  
Career Mobility ◽  
Oil And Gas Industry ◽  
Energy Component ◽  
Gas Industry ◽  
Young Professionals ◽  
Talented People ◽  
Lower Carbon

The purpose of life is to discover your gift. The work of life is to develop it. The meaning of life is to give your gift away. - David S. Viscott, American psychiatrist Steering by the Stars History is a guide to navigation in perilous times. History is who we are and why we are the way we are. - David McCullough, American historian I recently read a “thought piece” in a major magazine that was a fictional account of how a new CEO would address his or her company’s employees while simultaneously restructuring the company’s units to deal with the pandemic. The fictitious CEO focused on prioritizing two things: treating the employees with respect while rewarding their loyalty and contributions and taking the necessary actions to maintain and improve engagement and sales for the company’s customers. This story is a reminder of the effect the pandemic has on businesses - all businesses. When the need to hire, utilize, and retain the very best talent is absolutely essential, do talented people really need to be micromanaged and endlessly evaluated? Or should we have the confidence to let them do their jobs? As I have mentioned in past columns, we (the big we - the oil and gas industry) will emerge leaner and a lot meaner when this storm finally passes. Employment, promotions, career mobility, and access to capital will become much more competitive. Our next generation, the students, need to understand and accept this. Young professionals need to realize that being a best-in-class performer may not be an option, and yes, layers of management will disappear as we rely on people to self-motivate and self-optimize their performance. We must also focus on what our customers want, namely energy security, diversity of access to energy, a lower-carbon future, and assurances that we are “walking the walk” on ESG issues. ESG stands for environmental, social, and corporate governance, in case you forgot. Each of these is both desirable and achievable - and need I restate that this is what our customers want? So how do we “steer by the stars?” Start with the obvious: If you can’t see the stars, you may want to wait until you do. Most importantly, this method works - crudely perhaps, and certainly not with the precision or reliability of GPS, but we aren’t trying to thread a needle. We are trying to ensure the significance of our industry and the livelihoods of our people. Understanding how to get where we need to be is the most essential element to getting there. We have the talent, technology, and infrastructure to provide a vital energy component. We need to make sure that we are “steering” toward our customers and toward a future where we continue to make a significant social and economic impact on the global economy.

Carbon capture and storage in the oil and gas industry: 40 years on

2017 ◽  
Vol 57 (2) ◽  
pp. 413
Author(s):  
Christopher Consoli ◽  
Alex Zapantis ◽  
Peter Grubnic ◽  
Lawrence Irlam
Keyword(s):  
Oil Recovery ◽  
Energy Demand ◽  
Carbon Capture ◽  
Large Scale ◽  
Oil And Gas ◽  
Carbon Capture And Storage ◽  
Oil And Gas Industry ◽  
Gas Industry ◽  
Wide Range ◽  
And Storage

In 1972, carbon dioxide (CO2) began to be captured from natural gas processing plants in West Texas and transported via pipeline for enhanced oil recovery (EOR) to oil fields also in Texas. This marked the beginning of carbon capture and storage (CCS) using anthropogenic CO2. Today, there are 22 such large-scale CCS facilities in operation or under construction around the world. These 22 facilities span a wide range of capture technologies and source feedstock as well as a variety of geologic formations and terrains. Seventeen of the facilities capture CO2 primarily for EOR. However, there are also several significant-scale CCS projects using dedicated geological storage options. This paper presents a collation and summary of these projects. Moving forward, if international climate targets and aspirations are to be achieved, CCS will increasingly need to be applied to all high emission industries. In addition to climate change objectives, the fundamentals of energy demand and fossil fuel supply strongly suggests that CCS deployment will need to be rapid and global. The oil and gas sector would be expected to be part of this deployment. Indeed, the oil and gas industry has led the deployment of CCS and this paper explores the future of CCS in this industry.

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