Sujit Potdar|Aspen Technology
Despite record low LNG prices, and the ever increasing capital costs of new production plants, there has been a significant amount of pressure on the industry to increase capacity by improving existing plant efficiencies and constructing more facilities. Demand for LNG as a carbon friendly energy source continues to grow in many regions. Before the end of the decade, when most of the current construction projects will reach completion and be in production, there will be a short period of oversupply, but not for long. By 2021, the world will need additional supply capacity – more output, more plants.
In The Headlines
On Friday January 1, 2016, the Theo T left Corpus Christi Texas with a cargo of crude oil and condensate headed for Vitol Inc. refineries in Europe. For the first time in 40 years, the United States is exporting crude oil to a non-Canadian market. One tanker is a drop in the bucket, but during the months and years to come, this event will mark a dramatic change in the global oil market, as it brings the substantial competitive and technical capabilities of American producers to bear in head-to-head competition with state-owned oil monopolies. Forecasting future exports is challenging given price volatility and geopolitical challenges in the Middle East. However, the US Energy Information Administration (“EIA”) has built three cases to illustrate the potential for US exports out to 2025, and one of the stories of the next several years in the oil business might involve the influx of American barrels on foreign shores.
Topic of Discussion
Marne Martin | ServicePower Technology PLC
To achieve business goals safely, and effectively extract reserves as quickly as possible, people, assets, oil and gas organisations and third-party contractors need to pull together. It is of course the people that are most important to achieving these aims, and it is the people that present maybe the biggest challenge. There has been rapid industry expansion and now, with the drop in oil prices, rapid contraction of employee numbers. Firstly there was a skills shortage, and now, with the pressing need to cut expenses in the face of dropping commodity prices, the industry cannot seem to offload its employees fast enough.