There is only one curve that matters – and that is the “World Crude Oil Demand curve”. The world population continuous to grow and evolve requiring more energy that needs to come from hydrocarbons. Crude oil demand has surpassed 100 million BPD. Since 2012 there has been a steadily growth in demand for crude oil from 90 million BPD and its expected that the demand will be getting close to 105 million BPD in 2020. Given current WTI and Brent pricing this represents an increase of almost a billion USD per day since 2012!
The US has become the World’s number ONE petroleum liquids producer with the Permian basin as the largest producing region in the US. If the Permian Basin would be a country it would rank #7 among the world’s top producers. The US market is remains focused on “Tight oil production” (Shales in the lower 48). This is expected to grow in the next 3 to 5 years, whereas Gulf of Mexico activities are expected to decline if technology investments are limited.
TenRivers has the domain expertise and data to help you understand how the Oil and Gas Industry is structured, the dynamics between Oil and Gas Producers and Oil Field Service and Equipment (OFSE) companies, the technology, the competitive landscape, and where this industry as a whole is trending.
Global economics dynamics and the continuously growing demand for energy has more than ever an impact on the decision making process in exploration and production of oil and gas. NOC's, IOC's, and Independent Producers have become asset portfolio owners depending more so on their suppliers of Oil Field Services and Equipment (OFSE). In the new age of Digital Technologies partnerships between Producers and OFSE companies optimizing technology integration will lead to reduction of operating cost and improved reservoir performance. TenRivers is the leading domain expert in Oil and Gas Digital Technologies and can help you with your strategies and implementation.
Technology has definitely changed the way wells are being drilled, completed, and produced when compared prior to 2014 operations. For example US Drilling is done with less than half the rigs in 2014 and less wells are being drilled but the wells being drilled have longer laterals with extended reach over 8,000 ft. Wells are heavily fracked to produce more than wells prior to 2014. As a result today's wells are producing more oil resulting in the increase of US crude oil production.
TenRivers has the domain knowledge in what technologies and which OFSE business segments will be in high demand in the next 2 to 5 years to support the Oil and Gas Producers. OFSE industry is going to a transformation to come out of the downturn. Likely we will see increased M&A activities in 2019 to create focus, and build supplier bargaining power to be able to deliver profitable results in the next 3 to 5 years.
We will be delighted to engage with you assisting you in understanding the Oil and Gas Industry and provide consulting services tailored to your needs.
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