Lorraine Moore | Accelerate Success Group
Few predicted the unprecedented levels of US oil and gas production–just this year alone, oil production broke records in January, March and May. This phenomena is creating jobs, has reduced US oil imports to the lowest levels in 29 years, and positions the US and Canada as worthy contenders to export LNG. Commercial and consumer oil and gas consumption had the greatest reported increase since 2004. Who are the winners in this oil and gas boom? Largely, storage providers and transporters of oil and gas.
In The Headlines
Michael Lorusso | CIT Corporate Finance, Energy
Given the recent changes in global oil markets, it might seem as if the growth prospects for energy producers and the companies that support them are falling along with the price of oil. But take it from someone who has seen his share of market volatility over the years: there is little danger such businesses won’t have access to the capital they will need to keep growing.
Topic of Discussion
Much has been said in the United Kingdom about the potential for shale gas to transform the UK energy market as it has in the United States, where wholesale gas prices are a third of those paid by British consumers. The British Geological Survey estimates that the UK’s main shale formation, the Bowland Shale (Figure 1), has some 1,300 Tcf of gas in place. With annual gas consumption in the UK at around 3 Tcf, this alone could amount to decades of supply even at very conservative estimates of economically recoverable reserves. There are, however, significant obstacles to U.S.-style growth in the UK shale gas industry.
FOR IMMEDIATE RELEASE San Francisco, November 17, 2014
The International Energy Agency estimates that $50 trillion of cumulative investment is needed to meet the current world demand for energy. At the same time, a recent Ernst & Young study found that 64 percent of oil and gas megaprojects face cost overruns averaging 58 percent of their budgeted value—and 68 percent of these projects experience significant overruns as well.
These figures clearly indicate that cost and schedule overruns on such projects have become an industry crisis, impacting not only shareholder value, but society as a whole.
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