energize oil & gas – issue 01-2013 - GL Group

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market report How confident are you about the oil and gas sector in the coming year? Confident for Growth In spite of economic uncertainty, technically challenging operating environments and a lack of skilled personnel, the industry demonstrates optimism and willingness to invest The oil and gas industry is facing a new reality in 2013. Rising global energy demand and dwindling access to “easy” oil have compelled the sector to explore new frontiers and technologies to unlock resources once considered inaccessible. New investment is driving innovation and change throughout the industry, but it comes with challenges. In particular, in the wake of the 2010 Macondo oil spill, companies are facing they expected to increase their capital investment this year, with spending on innovation also set to increase. Just 6 per cent of those polled expect to cut spending on research and development (R&D) and, while the highest proportion of companies (44%) expect budgets to remain flat during 2013, nearly four in ten (37%) expect to spend more on innovation. Yet, despite these positive forecasts, GL Noble Denton’s research reveals a number of significant challenges facing How confident are you about the oil and gas sector in the coming year? rigorous regulation and stricter scrutiny from a wide range of stakeholders. Nonetheless, confidence in the industry is rising and Seismic Shifts: The outlook for the oil and gas industry in 2013, GL Noble Denton’s third annual report on the outlook for the sector, reveals that there is much to be optimistic about. Around nine in ten (89%) of the 400 senior oil and gas professionals surveyed in the research said they remained upbeat about the industry’s prospects in 2013, up from 82 per cent in 2012 and 76 per cent in 2011. In particular, they identified the potential for exceptional growth in projects across the US, Brazil and Australia. abstract In addition to growing industry confidence, Seismic Shifts suggests that Dwindling “easy” oil and gas is a technological challenge Investment focuses on the investment will remain robust in 2013. USA, Brazil and Australia Half the respondents surveyed said that agree neutral disagree ”The impact and consequences of the 2010 Macondo oil spill on the industry have now largely faded” don’t know / not applicable To what extent do you agree? 20% 25.4% 46.2% 8.5% 12 energıze
3.7% 12.9% 45.8% Risk management 37.6% 2.4% 49.5% 7.8% Health & safety 40.3% 2.4% 40.7% 7.8% Compliance & regulation 49.2% How do you expect investment in the following aspects of your business to change during 2013? increase decrease stay the same don’t know / not applicable the industry this year. In particular, increasingly demanding operating environments and a shortage of skilled resources mean that companies will have to deal with tighter margins, greater overheads, higher risks and tougher contract terms in the face of a skills meltdown. Key Concerns in 2013 Economic uncertainty tops the list of industry worries in 2013, with forecasts for impeded growth increasingly becoming long-term expectations. This is especially true within Europe, due to concerns about the outlook for the Eurozone, and in Asia-Pacific, where six in ten of those polled flagged economic uncertainty as the principal force likely to impact the oil and gas sector in 2013. Low natural gas prices were also identified as a cause for concern, even as bullish oil-price forecasts help to propel the industry. But, although the US shale revolution and resulting low wholesale natural gas prices suggest industry unease over a broader global gas “glut”, any further worldwide decoupling of oil and gas prices remains unlikely, according to Seismic Shifts. Less than half (44%) of the respondents said they believed gas prices would continue to deviate from the oil index, with industry professionals expecting oil prices to remain high in 2013, at around 100 US dollars per barrel. 76% 2011 Confidence prevails 82% 89% 2012 2013 Which do you expect to be the biggest barriers to growth for your business? (top 5 answers) 54.8% 38% 26.8% 26.5% 24% skills shortages increased overall operating costs difficulties in resourcing projects pricing challenges (e.g. falling gas prices making projects uneconomic) tougher competition from international rivals Concerns about the industry’s shortage of skilled labour were high enough to make skills shortages a top-five issue among those polled for the 2011 research. Worries have risen sharply: 55 per cent cited skills shortages as the number-one barrier to industry growth in 2013 (see North Sea Oil. left). Securing and retaining talent from a dwindling pool of resources will be one of the biggest decline, higher oil After years of prices have made concerns for companies in the coming year. exploration and production of A Changing Global Fuel Picture North Sea oil feasible once 2013 could be the year in which we see the beginnings of an east-west divide in energy supply again. and demand, indicates Seismic Shifts. Growth in the production of unconventional oil and gas will increasingly help the US to fuel its own energy needs, leading the country to rely less on the Middle East for imports. 01/2013 13
Page 1 and 2: GL Noble Denton energıze e nergy.
Page 3 and 4: editorial To Our Readers Confidence
Page 5 and 6: profile inbrief GL Noble Denton in
Page 7 and 8: The Americas, Asia-Pacific, the Mid
Page 9 and 10: Energy Mix. The largest shale gas r
Page 11: BioGas suite of web-enabled softwar
Page 15 and 16: ise by 50% or more rise by 25% or m
Page 17 and 18: Network. 4,000 technical experts se
Page 19 and 20: Utility works. Massive investments
Page 21 and 22: The demand for engineering services
Page 23 and 24: CNPC. China National Petroleum Corp
Page 25 and 26: CPOE Headquartered in Beijing, CNPC
Page 27 and 28: Integrity Management Software GL No
Page 29 and 30: Narrows. Tight turns, strong curren
Page 31 and 32: Precarious. The sheer dimensions of
Page 33 and 34: GL Noble Denton provides engineerin
Page 35 and 36: Risks. The consequences of errors c
Page 37 and 38: Figure 1. Short-term survival test
Page 39 and 40: provides a factor to increase repai
Page 41 and 42: wall theory for the principal stres
Page 43 and 44: Pipe Doctors. The Henkel composite
Page 45 and 46: IADC GL Noble Denton Expert recogni
Page 47 and 48: Oil & Gas Complex marine engineerin

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