From .... Finding Petroleum ...17 May 2018 18:28
What on earth is going on? Why am I asking this question? This year, this month, this week?
Well, here�s a starting point�.from the Sunday Telegraph of a couple of weeks ago: �Big Oil�s Big Identity Crisis�, a neat article unfortunately obscured behind the Telegraph� �Premium� wall.
What was this all about? Well, let�s try a one word answer���EQUINOR!!
Does everybody know what this is? Statoil�s re-branding�..sounds a bit like an insurance company to me but what do I know!!
However, they are��Joining the re-branding wave of majors and mini-majors doing the same thing, saying similar things. ....They have all been under pressure on several fronts, for example:
Over the last 2 or 3 years on: sustainability: are we a �fossil industry�, likely to go the same way as coal? Under pressure to reduce carbon �responsibility�. Anticipating growth in electric vehicles.
Since 2014�.cost pressures = major manpower cuts, hitting suppliers over the head, selling off poorly performing assets.
Reserves replacement: everybody doing poorly; in particular frontier exploration has not performed well since around 2010.
So different pressures over different periods leading to a need for change! And the response is�..these very broad statements being made by Shell, BP, Total, Statoil and to some extent Chevron and Exxon��
�We are energy providers!�
Electricity generation = �more than 50% gas in our portfolios�
We will focus on unconventionals and/or mature provinces
�We are OK at $60/barrel!�
And add to this a couple of �new� themes� Firstly �digitization� which is tending to focus for the moment on putting sensors in and around every price of oil field equipment to monitor performance, predict failures etc.
But there are lots of other opportunities.... And �decarbonisation� which is very focussed on Carbon Capture and Storage, especially for gas-fired power stations, and also committing to an overall reduction in GHG emissions.
A particular issue is or are methane emissions, much more dangerous than carbon dioxide, and likely to increase the more gas is part of the �energy providers� portfolio.
To summarise, in response to:
Questions on �Sustainability� => let�s not be in a �fossil industry�
Growth in electric vehicles => increased electricity demand
Majors and mini-majors are rebranding: ..As energy providers, especially of electricity
With > 50% gas in portfolios, �reducing emissions�, and
Returning to �mature provinces�; pursuing unconventionals.
These changes will impact, indeed IMHO seriously challenge, several different groups, for example:
Small-mid size companies who bra
Sign In
Follow the stocks
