Tags
Industry News

Global industry changes create uncertainty for oil and gas

Key drivers underpinning capital allocation, market alignments and operating characteristics of the global oil and gas industry are undergoing rapid changes - and creating greater uncertainty in the commodities market. PwC Canada's new report Energy Visions: Who's in Charge launched today in Calgary focuses on key actions the Canadian industry must take to achieve greater agility in this changing marketplace. 

OPEC policy changes have affected heavy oil trade flows, according to the report. Up until recently, US shale supply was dependent on prices, actions, and decisions of Saudi Arabia and core OPEC members. But the extreme price volatility and existence of a new significant source of non-OPEC supply (US shale) have challenged OPEC's authority. Lower OPEC exports of heavy sour crude to Asia have driven up prices, making it economically feasible for North American barrels to reach that market. 

According to the report, the resilience of US shale under the 'lower-for-longer' oil price environment has been stunning. Even though US production fell from a high of about 9.6 million bpd in April 2015 to about 8.6 million bpd in November 2016, the rate of decline was much slower than many predicted. 

"With the new US Administration and a freshly signed OPEC agreement, the outlook is still one of uncertainty for oil and gas. Price volatility continues to be a determining factor that will impact current and future strategies for all industry players," said Reynold Tetzlaff, National Energy Leader at PwC Canada. "The Canadian sector stands at a crossroad where it must balance well managed cost containment, capital discipline, strong sustainability practice, operational excellence and an innovation culture if it wants to survive the lows and excel in the future." 

Canadian oil and gas companies aren't ignoring the increasing impact carbon has on their operations or the growing relationship carbon has with attracting and maintaining capital in Alberta, especially in the eyes of international investors. Greater collaboration between government, industry, stakeholders are required to hold Canada accountable to reduce greenhouse emissions while remaining globally competitive.  

"The world needs oil and gas and that will not change in the near term. I am confident that Canada, with our technological innovations and ingenuity, and strong environmental standards, is well positioned to build on its position as a global leader within the sector," adds Tetzlaff.

Company Info

Latest News

Tags
Drilling & Production
Industry News

RMP Energy announces Elmworth battery start-up

RMP Energy Inc. has announced the recent successful commissioning and start-up of its 100% owned and operated Elmworth 2-23 oil battery and gas handling facility in the Elmworth (Gold Creek) field of West Central Alberta. The 2-23 Facility is presently handling the initial crude oil and natural gas production from two (2.0 net) of RMP's Middle Montney drilled wells (3-22-68-3W6M and 4-18-68-2W6M). Early-stage well production results are encouraging and the Company anticipates providing detailed production data once the wells produce for at least thirty calendar days. The start-up of the 2-23 Facility marks an important corporate milestone for RMP as it enables the Company to begin realizing commercial benefit and return of its capital investment from its new core area, which encompasses 82.5 net sections (52,800 net acres) of acreage prospective in the Middle Montney reservoir. The 2-23 Facility, which can be expanded as required, has initial design capacity to handle 1,500 bbls/d of crude oil, 8.2 MMcf/d of natural gas and 7,500 bbls/d of emulsion.   

Read More

Sponsored Content

TESTS SHOW VOLVO AT 20 PERCENT LOWER COST PER TON

The Volvo EC350E and EC380E were put up against two industry leaders to see how each would perform in terms of productivity and fuel efficiency. The four comparable machines were equipped with fuel meters and put through the same test, loading trucks at maximum power. The results were used to calculate estimated time and cost to move 551,156 U.S. tons (500,000 metric tons) of material. Calculations are based on 50-minute work hours, 8 hours per day.

The Result: Volvo delivered a 20% lower cost per ton and moved 15% more material per hour. Get tips about how to get the most from your excavator at volvoce.com/exfactor. 

Learn More

Tags
Instrumentation, Systems & Automation

Advanced LVDT signal conditioner

H.G. Schaevitz LLC dba Alliance Sensors Group introduces the S1A AC-LVDT Signal Conditioner that offers smart and fast LVDT setup with built-in null indication and simple front panel pushbuttons to set zero and full scale. Engineered to work with the widest range of AC-LVDTs, RVDTs and inductive half-bridge sensors including 3-wire GE LVRTs and GE gas turbine LVDTs with the buck-boost, the S1A DIN rail module supports LVDT operation and indicates most common failures. 

Read More

Tags
Software & IT

IoT driving digital transformation, research report shows

IoT has become the leading technology for digital transformation and is the number one priority for 92 percent of organizations, according to global research findings published by Inmarsat. The Inmarsat Research Programme study, focusing on the enterprise application of the Internet of Things (IoT), revealed that machine learning (38 percent), robotics (35 percent), and 3D printing (31 percent) were also key requirements for effectively delivering digital transformation for business.  

Read More

Tags
Software & IT

Cloud-based solution makes SCADA secure and scalable service

Honeywell Process Solutions (HPS) announced the launch of Experion Elevate, a real-time process supervisory control and data acquisition (SCADA) solution delivered as a secure and scalable service. Experion Elevate allows for predictable costs, easy upgrades, and continual support. It is a member of Honeywell's suite of cloud-enabled solutions for operations technology and information technology (OT/IT). HPS made the announcement at its annual Honeywell Users Group symposium.

Read More

Tags
Industry News
Power Systems

Kubota Engine increasing footprint in Latin America

Kubota Engine America is increasing its footprint in Latin America by collaborating with key partners, already adding 24 distributors in more than 20 different countries to its growing network. Kubota's growth is fueled by its dedicated Latin America development team that has spent the last two years identifying the best distributors to address local needs and strategically planning to bring and support Kubota's reliable Japanese technology to more people. 

Read More

Tags
Industry News

Oil Sands Advisory Group provides first round of advice to Alberta government

The government of Alberta has received the first round of consensus advice from its Oil Sands Advisory Group (OSAG). The group is composed of leaders from the oil sands industry, environmental groups, and affected communities. Its first task was to advise the province on growing oil sands production in compliance with its legislated 100 megatonne cap on annual emissions.

Read More

Tags
Industry News

Oil sands production forecast expects strong additions through 2019

IHS Markit has released its outlook for Canadian oil sands production through 2026. IHS Markit expects large production growth through 2019 — making Canada the second largest source of global supply growth during that time. More modest but sustained growth is expected beyond 2019, with oil sands production at the end of 2026 around one million bpd higher than in 2017.

Read More

Tags
Software & IT

New release of Seeq software expands data analytics and introduces new features

R17 is the sixth release of Seeq software in just the past 15 months, driven by input and use cases from customers expanding their use of Seeq. A key innovation in the new release is support for visual analytics on data in any time reference to provide improved correlation analysis of historical data sets, monitoring support of incoming data, and predictive analytics to anticipate future events and issues.

Read More

Tags
Drilling & Production

CAODC revises 2017 drilling forecast upwards

The Canadian Association of Oilwell Drilling Contractors (CAODC) has announced its revised 2017 Drilling Forecast. The organization forecasts the following:

  • Projected 2017 wells drilled: 6,842 — an increase of 2,177 from original forecast
  • Projected 2017 operating days: 71,839 — an increase of 22,859 from original forecast
  • Projected rig count in for Year End 2017: 635 — a decrease of 30 rigs 

Read More