Issue: October 2016

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COVER

  • OILFIELD SERVICE COMPANIES ADOPT A NEW ROLE

    Oil drillers have struck a “Gusher”! This is, however, a gusher they do not want, one of red ink signifying unprofitable budgets. The overproduction of crude oil, along with low price per barrel, has led to less demand for crude, resulting in loss of revenues for oil service companies. The question is, can service companies survive the severe fall in revenues, and still remain healthy enough to perform on future contracts?

INSIDE ISSUE

  • SEISMIC DATA FIRMS CONTRIBUTE TO UPSTREAM

    Drilling costs for oil and gas concessions can reach over $100 million. Calculations per field average between $5 to $10 million for drilling and completion expenses, as is the case for Eagle Ford and Bakken in the US, and the drilling of AG-115 well in Abu Gharadig field in Egypt, costing $6.5 million. Therefore, companies do not want to explore wrong locations, only to discover poor-yielding assets at the end of the process.

  • Driving Revenues through Innovative Technology

    National Oil Companies’ (NOCs) growing interest in new kinds of partnerships has created new opportunities for oil field service companies. As profits and revenues of service firms highly depend on the scale of exploration activities, innovative technology has become an essential component for revenue generation. Giant oil field service actors such as Halliburton, Schlumberger, and Baker Hughes have thus resorted to this business strategy in a market where crude prices have witnessed an unprecedented decline.

  • The Role of Sensors Service Companies in Global Oil Market

    Technology is vital to enhance the quality of service companies’ output provided to the oil and gas industry. Skills, methods, and techniques that research and development departments (R&D) of service firms adopt, help boost production for oil and gas companies with a minimal cost and high efficiency. The developments then promise to maximize service companies’ revenues.

  • ENGINEERING, PROJECT MANAGEMENT FIRMS ALTERING OIL INDUSTRY

    Implementing projects in oil and gas industry requires companies to assign certain tasks to specialists. Project managers and engineers are needed for oil and gas players in order to avoid taking huge risks that may result in loses. In that aspect, oil and gas investors hire engineering and project management service companies, also known as Engineering Procurement Construction Service Companies like Ennpi in Egypt, Amec Foster Wheeler in the UK, and Carmagen Engineering in the US.

  • Improving Service Companies’ Profitability through Supply Chain Agility

    The global oil and gas industry has been rapidly turning into a highly volatile and complex industry over the last two years. Meanwhile, the different types of players operating within the industry have been often caught competing on supply chain effectiveness to lower their overhead costs, improve their operational efficiency, and sustain their growth and profitability, in the thick of the fluctuating business environment. Oil-field service and equipment (OFSE) companies have been among the companies suffering the most from the international plunge in oil prices, which commenced in mid-2014.

  • Joint Ventures in the Energy Sector: Structuring JVs for Success in Egypt

    The sheer scale of investment needed to bring Egypt’s deepwater upstream, downstream oil and gas, and power projects into operation, and the specific needs for foreign investment, casts a sharp focus on the joint venture mechanism for doing business in Egypt. The aggregate level of investment anticipated across these sectors currently exceeds $100 billion and it is hoped that the IMF funding package of $12 billion agreed in August will serve as the catalyst to kick start or accelerate much of the needed investment.