Page 22 - impiantistica_5_15
P. 22
Fig. 2 – Global hydrocarbon storage from 2015 to 2024 in oil & gas prices would cut global production.
However, it is having the opposite impact. Opec
producers are now focused on market share not
price protection.
Opec oil production has risen from about 30 million
barrels per-day to over 32 million barrels per-day
and climbing.
Also, US Independents facing serious debt
problems are maximizing production to increase
much needed cash-flow. They are also seeking
new ways to cut costs in order to better compete
and maintain production. The result of all this is an
overall increase in global oil & gas exacerbating the
glut.
The Majors as buyers will have the
financial resources to continue developing
and producing their shale properties,
lowering production costs and adding to
the growing global energy glut.
Conventional deposit of oil assets. For example, 20% of the “junk bond” or Shale is ubitquous
and non conventional de- high yield bond market comprises Independent
posit of shale oil & gas producers. Now that spot prices in the US are Calcite exists all over the world. There are large
at $ 2.50 per million btu these Independents can quantities in countries such as China, Argentina,
Fig. 3 – Comparative pro- no longer pay down their debt payments. They Russia, Algeria and Canada to name a few.
duction surpluses, demand will therefore be forced to sell shale assets at a Does anyone really believe these energy riches
and price declines from discount to the Majors. will not be exploited contributing heavily to the
1986 to 2008 There are now a slew of Independents selling shale production of oil and gas and national wealth?
assets, e.g., Anadarko, Comstock Resources, Exco Over time, these countries will develop the ability to
Resources, Chesapeake Energy etc. Many more exploit their shale resources contributing to an ever
sales are forthcoming. The Majors as buyers will growing supply of oil & gas energy.
have the financial resources to continue developing
and producing their shale properties, lowering Spending for storage tanks
production costs and adding to the growing global
energy glut. Capital spending for storage tanks for hydrocarbons
will increase some 250% in 2015. Spending on this
Crash in oil & gas prices and type of storage tanks will also grow dramatically
global production reaching some $ 21 billion by 2024 (figure 2).
This tells us that oil & gas supply will continue
It was assumed by many that the recent crash to significantly outpace demand for many years
ahead. Consequently, there will be downward
price pressure on both oil & gas for the years
ahead. Also, when the stored oil & gas is eventually
released from storage it will push down energy
prices sharply.
20 Impiantistica Italiana - Settembre-Ottobre 2015
