McKinsey Energy Insights has released its latest Global Oil Supply and Demand Outlook predicting that oil prices will range within $60–70/bbl over the next three years. That is if the market trades ad MEI expects, in which case oil prices would increase to $65-75 by 2030. In the shorter term, MEI said that subject to OPEC continuing to fulfil its share of production cuts, having achieved 90% of its target in January, then the rebalancing process was likely to proceed relatively smoothly over the coming months.
Industry
APPEA warns against sovereign risk threat to Australia
The gas industry is disappointed to see the Australian Industry Group advocate half-baked policies that would definitely shred the incentive for investing in new gas projects, and that even AiGroup concedes these policies may not be feasible. “Calling for retrospective policy changes is a huge step for any business group,” APPEA Chief Executive Dr Malcolm Roberts said. “Suggesting government intervention to overturn contracts is almost unprecedented in Australia. “There is no doubt that we are facing a tight east coast gas market. There is no doubt that the market needs more gas supply.
Energy crisis SOS is in the pipeline
The oil and gas industry has welcomed the “constructive approach” proposed by the Queensland Minister for Natural Resources and Mines Dr Anthony Lynham which would see the state and commonwealth governments working with gas producers to boost supply. APPEA Queensland Director Rhys Turner said Dr Lynham's willingness to engage with the Commonwealth, including to develop new pipeline infrastructure, echoes what the industry has been saying for some time. "Developing new fields to bring more gas to market is the most important part of the equation right now," Mr Turner said. "Exploration is at a 30-year low.
Po Valley gets Bezzecca first gas go-ahead
Australian gas producer, Po Valley Energy, (ASX: “PVE”) is pleased to announce its 65% owned AIM-listed subsidiary, Saffron Energy (AIM:SRON) has received final approval from the Italian Ministry of Economic Development (UNMIG) for gas production at the Bezzecca gas field. Commissioning and gas production is scheduled to commence on the coming days. Bezzecca is located east of Milan within the established prolific, gas producing Po Valley region in northern Italy. Gas from Bezzecca1 is processed at the Vitalba processing plant and directly connected by the national grid.
APPEA applauds Queensland effort to boost gas supply
The announcement by QGC, a Shell Australia joint venture, that it has signed two new gas sales agreements with domestic customers is a clear demonstration that the Queensland gas industry is doing its bit to address concerns about domestic supply. This was said by APPEA Queensland Director Rhys Turner, who added that QGC’s announcement that it would be supplying gas for power generation in South Australia and manufacturing in Queensland should be a wakeup call to other state governments to act to bring on additional supply.
Polarcus announces Asia Pacific 3D contract.
Marine seismic acquisition company Polarcus has received a contract award for a broadband 3D marine seismic project in the Asia Pacific region. The marine seismic acquisition company announced the deal on April 7, but declined to reveal who the client was or any financial terms of the contract. Polarcus said the project was scheduled for the current quarter and would run for approximately two months.
CGG launches Sentinel for shallow target applications
CGG has announced that Sercel has launched Sentinel® HR, a high-resolution solid streamer designed to meet specific imaging needs of shallow-target applications, such as oceanology, civil engineering and reservoir characterization, as well as high-resolution 3D (HR3D) seismic surveys for detailed mapping of geological features. CGG said the latest member of the Sentinel streamer family has been developed with a close channel separation of 3.125 m to achieve reliable and cost-effective high-resolution surveys.
Icon takes the shale baton solo
ICON Energy has inherited a 100% interest and operatorship of ATP 855 in the Cooper Basin and will now be seeking commercial partners to pursue its ambitions for the Nappamerri Trough gas play. This development emerged after protracted negotiations between Beach Energy, which had drilled seven wells in ATP 885P, just over a year after supermajor Chevron had lost its appetite for the shale gas prospect in southwest Queensland. Beach has quit leaving Icon Energy no costs apart from well remediation expenses for a dry gas prospect with high CO2 and a challenging subsurface environment linked to high-pressure and temperatures.
Statoil strikes oil and gas with wildcat
Norway’s Statoil has struck oil and gas at a wildcat well in the Norwegian sector of the North Sea. This comes after the Norwegian oil and gas E&P, as operator of Gimle Unit and production licence 193, had completed drilling the 34/10-55 S well. The Norwegian Petroleum Directorate said Statoil had encountered a total oil and gas column of about 170 meters, of which 60 meters are in sandstone with good to very good reservoir properties in the Statfjord group and 10 meters in sandstone with moderate to good properties in the Lunde formation.
OGA unveils UK offshore frontier licence awards
The Oil and Gas Authority (OGA) has offered for award 25 licences for 111 blocks or part blocks to 17 companies in the 29th Offshore Licensing Round to enable further exploration and production across frontier areas of the UK Continental Shelf (UKCS). The 29th Licensing Round was the first licensing round in two decades to focus solely on frontier, under-explored areas of the Rockall Basin, Mid-North Sea High, and part of the East Shetland Platform. It attracted applications from 24 companies for 113 blocks when it closed in October 2016.