Technology from Onshore, water treatment and telecom are now imported offshore bringing new solutions and sometimes new markets.

Subsea Umbilicals Risers Flowlines

The Keep Smiling Spirit

Today Oil and Gas industry is facing one of its structural largest crisis due to a huge depreciation oil price on the market.
After 10 years of high price for oil with the frame of 80 to 110 USD per barrel nowadays barrel have slipped down around 40-35 USD.
Many projects are delayed, postponed or even cancelled due to uncertainties on profit feedback. In addition Alternative energy are emerging taking also advantage of more than 50 years of oil and gas offshore industry. But not only, lesson learn from other industry are now used or at least tested in oil and gas.
Technology from Onshore, water treatment and telecom are now imported offshore bringing new solutions and sometimes new markets.  
Despite the oil price  may remain around 30-50 USD/bbl,  the cost of oil producing  in Middle East countries. Iran, UAE, Irak are below 20 USD/bbl, even below 19 USD in Saudia Arabia. Except Canada, UK and Brazil which are above 40 USD and mainly due to huge investment governs by North Sea in UK, Deepwater in Brazil and Shiitic Oil. All the other countries are below 30-40 USD.
At last if we look back, we are just back in the years 1995-2005, with a barrel around 30 USD. As mentioned recently by TOTAL CEO, M. Pouyané, we have left the 10 years of high petrol price to enter into a new world where the price may be « low ». 
So why keep having the smiling attitude ?
Because the demand is still there. Because the middle class emerging in high populated countries like China, India, Indonesia, Brazil will need energy. It is anticipated that 80% of the oil demand for the next 50 years will be in Asia-pacific Area. So company will have no other option that to develop their capacity of Production.
Because even if new energy will come and challenge fossil energy, the oil will remain one of the most important partner for industry. This will push oil and gas to move thru new green standard by optimizing process, carbon impact and security. 
Because and if despite oil operators have pushed backs the brakes this years and probably will be careful for 2016, some subsea projects still exists but now industry has to be more competitive. New cheap and cost economic solution have to emerge. Today Total targets is to produce below 50 USD/bbl but nowadays they are above 70 USD.  
Because, nowadays we will not probably anymore in the "golden-plate FPSO" timing but new small and agile operator will come and challenge established oil operator.
So our industry has to bring new challenge and new solutions, Cheaper, Faster and Better. Definitively polymer can be on of these. But innovative and smart companies are also one of the best promising.
To finish I would bring the words of Peter Drucker : "The best way to predict the future is to create it."

Collections: Bardot group - Social & News

Category: 2016, Social

Type: Newsletter

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