FacebookInstagramTwitterContact

 

BORNEO HOUSING AGENCY: Terrace House in Bengkurong (B$190K, Property Chinese Owned) • Industrial Warehouse in Menglait, Gadong for Rent • Shop house in Gadong (Ground Floor) for Rent • Industrial Shops in Bunut for Sale • Land in Jerudong for Sale • Shop house in Kiulap for Sale (44 years lease, approx 5,000.00 per month rental) • Chempaka Terrace House for Rent (3 bedrooms, B$700.00 per month) • Shop house in Kiarong for Sale (B$380.00) • TEL: +6738732975, +6738839007           >>           Fully furnished office space for rent at Regus Brunei. Call +673-886-2879 or go to www.regus.com.bn           >>           Private Company Urgently Need Houses & Flats for Rent in Bandar Seri Begawan, Kindly Contact the ff. nos. for further information: 242-7623/+673 883-9007           >>           Lionel Messi Turns Frustration Into Match-Winning Clasico Performance           >>           Wayne Rooney Returns To Help Man United Close On Top Four           >>           Antonio Conte Wants Romelu Lukaku At Chelsea, Man Utd Face Silva Battle           >>           Liverpool Slip Up Again Vs. Palace As Christian Benteke Haunts Former Club           >>           Lionel Messi nets 500th Barcelona goal as his side beat Real Madrid 3-2           >>           Tim Cook Reportedly Threatened To Pull Uber From App Store           >>           Most Habitable Planets May Be Completely Covered In Water           >>           With The Galaxy S8, Samsung Grabs The Smartphone Design Crown           >>           Apple Threatened To Drop Uber's App Over Iphone Tagging (Updated)           >>           Britain’s Biggest Dog Is 7ft And Weighs The Same As A Baby Elephant           >>          

 

SHARE THIS ARTICLE




REACH US


GENERAL INQUIRY

[email protected]

 

ADVERTISING

[email protected]

 

PRESS RELEASE

[email protected]

 

HOTLINE

+673 222-0178 [Office Hour]

+673 223-6740 [Fax]

 



Upcoming Events


DARe (How to Start Business - Food Industries)
April 19th, 2017 | 20:00 PM





Prayer Times


The prayer times for Brunei-Muara and Temburong districts. For Tutong add 1 minute and for Belait add 3 minutes.


Imsak

: 04:42AM

Subuh

: 04:52AM

Syuruk

: 06:11AM

Doha

: 06:34AM

Zohor

: 12:20PM

Asar

: 03:33PM

Maghrib

: 06:26PM

Isyak

: 07:37PM

 



The Business Directory


 

 



World Business


  Home > World Business


Oil Industry Starts Revival as Project Approvals to Double


Photographer: Eddie Seal/Bloomberg

 


 January 12th, 2017  |  09:20 AM  |   567 views

BLOOMBERG.COM

 

The oil industry will shake off the effects of the biggest downturn in a generation this year as they more than double project approvals and increase exploration spending for the first time in three years, according to Wood Mackenzie Ltd.

 

Companies will green-light more than 20 oil and gas fields for development compared with nine in 2016, the Edinburgh-based industry consultant said in a report Wednesday. Drillers, led by U.S. shale operators, will also increase spending on exploring for new oil and developing existing projects by 3 percent to $450 billion following two years of cuts.

 

The outlook is improving after a 2 1/2-year slump that bankrupted some companies and forced those that survived to curb billions of dollars of spending, mothball projects and take a hit on earnings. Producers also renegotiated contracts to squeeze suppliers and reduce costs. This and rising oil prices since the Organization of Petroleum Exporting Countries Nov. 30 decision to cut production is helping the industry recover.

 

“The cycle we’ve just been through, we believe we’re coming out of that cycle,” said Malcolm Dickson, a principal analyst at Wood Mackenzie. “We are cautiously optimistic.”

 

About a third of the oil and gas fields that are likely to go ahead this year will be located in deep waters, he said. These are typically the most expensive to develop. Companies have managed to bring down the cost in some projects in the U.S. Gulf of Mexico to make them profitable with oil prices above $40 a barrel, Dickson said. Benchmark Brent has held above $50 a barrel this year and traded 0.8 percent higher at $54.09 on the London-based ICE Futures Europe exchange as of 9:28 a.m. local time.

 

Exxon Mobil Corp.’s Liza project in Guyana, Royal Dutch Shell Plc’s Kaikias in the deepwater Gulf of Mexico and Petrobras Brasileiro SA’s Sepia in Brazil are likely candidates for final investment decisions in 2017, he said.

 

Beyond 2017, there are still many projects that have break-even costs higher than $60 a barrel. Of the 40 larger deepwater projects that are moving toward approval, about half have a rate of return less than 15 percent at a $60 oil price, according to Wood Mackenzie.

 

Spending is picking up fastest in the U.S., where operators can respond quickly to higher oil prices. Spending on U.S. onshore projects is likely to grow 23 percent to $61 billion, according to the report. In much of the world outside the U.S., including the U.K. North Sea, exploration spending is likely to decrease, Dickson said.

 

While the outlook is improving, global upstream spending in 2017 will remain 40 percent below 2014, Wood Mackenzie said. Project approvals will also be below the 2007-2014 average of 40 a year. Explorers, still recovering from oil’s collapse, aren’t ready to turn on the tap just yet.

 

“For us this will be about not starting to run too fast,” Statoil ASA Chief Executive Officer Eldar Saetre said at a conference in Oslo last week. “There won’t be a lot of new activity initiated when it comes to larger projects in 2017.”

 

Though Brent oil had its best year since 2009 last year, with prices surging 52 percent, it remains about half its value in mid-2014. Prices are down more than 4 percent this month amid concerns about how effective the OPEC supply cuts can be if U.S. output rises.

 

“Most players will be hedging their bets because there’s still some uncertainty where oil prices are going to land,” said Tom Ellacott, a vice president of corporate analysis at Wood Mackenzie. However, “companies now believe they have reset their portfolios to operate at these sort of low prices that we have been seeing.”

 


 

Source:
courtesy of BLOOMBERG

by Rakteem Katakey

 

If you have any stories or news that you would like to share with the global online community, please feel free to share it with us by contacting us directly at [email protected]

 

Related News


Speaker Did Not Abuse His Power, Says His Deputy

 2017-04-24 09:15:49

North Korea 'Ready To Sink' Us Aircraft Carrier Vinson

 2017-04-24 09:27:55

Hot Spots In Emerging Markets This Week: Nigeria, China, Turkey

 2017-04-24 10:19:55