Shale plays

US shale is upstream's only bright spot.


While in some respects, it appears that the industry seems to be turning around on higher crude prices, as far as oil field service companies are concerned, the US onshore sector is still the only game in town. "We are in the midst of a unique and challenging cycle with very different dynamics between the North American and international markets," said Halliburton President Jeff Miller, whose assessment was confirmed by Barclay's analysts who estimated that US E&Ps will increase spending by 25% this year, while overseas firms are still heading for a 10% spending cut.

Intense competition has seen a number of service firms consolidate. Mergers since 2015 have included Schlumberger's acquisition of Cameron and Technip's merger with FMC Technologies. Mergers that have not yet been completed include Wood Group's proposed acquisition of Amec Foster Wheeler and Baker Hughes' combination with GE's oil and gas unit.

Some sources, however did point to a number of positive signs outside the US' shale fields. According to Wood Mackenzie, 20-25 large oil & gas projects are likely to be given the green light this year, up from just nine in 2016, and some contracts have already been awarded. TechnipFMC, for instance, received a contract in the last week of April to provide engineering and subsea equipment for ExxonMobil's Liza offshore project in Guyana, and the month before, the company won a contract for Kaikias, a Gulf of Mexico deepwater project run by Shell. (FT/May 2/p 74)

Source: Worldwide Refining Business Digest Weekly.e, May 15, 2017.


CEM Unit revamps
  • Gazprom Neft completes modernization of AR deep conversion complex. The Russian firm has announced that it has completed a RUB 6B ...More
  • L&T Oman wins EPC contract for Sohar coke facility. Larsen & Toubro Oman has announced that ...More
  • KBR to license ROSE technology to Shell refinery. Royal Dutch Shell will license a ROSE® ...more

New Products
  • ASTM procedure approval further opens up XOS' Clora suite of analyzers for crude oil chloride analysis. For more information, visit here

  • XOS has announced the worldwide release of Petra MAX™, a new D4294 analyzer with combined analysis of 13 elements from P to Zn. For more information, visit here

  • OMMICA™ from LUX Assure can save time and money with simple, onsite methanol analysis. For more information, visit here

  • Improve crude diet flexibility and increase your profits with the Baker Hughes Crude Oil Management™ approach—a proactive way to overcome the processing challenges of different crude blends. For more information, visit here

  • Baker Hughes' TOLAD™ cold-flow additives enhance the low-temperature handling properties of biofuels, petroleum fuels, residual oils, and crude oils. For more information, visit here