Financial Overview of Offshore Oil and Gas Industry Overview Brooks.pdfFinancial Overview of...
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Financial Overview of Offshore Oil and Gas Industry
36th Annual Marine/Offshore Industry Outlook Conferencey
Allen BrooksManaging Directorg g
PPHB LPMarch 28, 2013
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Good News – The Industry is Back!!!
• Central Gulf Sale- One of top 10 ever- $1.2b in high bids- 320 tracts- 52 bidders (even w/o BP)
• Shenandoah Appraisal Well- 1,000’ net pay- Continuous string of
d t di ideepwater discoveries Exxon – Hadrian
(700mm bbls) Chevron – Moccasin Chevron Moccasin
(200mm bbls) Shell – Appomattox
(500mm bbls)
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The World Needs More Oil and Gas
Global Energy Demand Growth
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Growth of the Offshore Oil and Gas MarketFrom 1 to 80+ Offshore Countries in 60 Years
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The Dynamics Underlying Offshore Industryy y g y
Worldwide Offshore Rig Utilization
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E&P Spending Responds to High Oil Pricesp g p g
$645bn to be Spent in 2013
Source: Citibank, Lehman Brothers, Barclays
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Parallel Offshore Oil and Gas Markets
International Drilling Shows SteadyU.S. Offshore Recovers after Macondo International Drilling Shows Steady Growth
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Oil Prices and Offshore Rig Cycleg y
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Technology Enhances Offshore Industry Capabilitiesgy y p
1st Open Water MODU – 1954 – 40’ w.d. 2000’s Generation – 10,000’s w.d.
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Technology Enhances Offshore Industry Capabilitiesgy y p
Tidewater’s Ebb Tide in Gulf of Mexico –1950’s Maersk’s North Sea “Behemoth” – 2000’s1950 s Maersk s North Sea Behemoth 2000 s
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Technology Enhances Offshore Industry Capabilitiesgy y p
Early McDermott Derrick Barge Deepwater Multi-purpose Construction VesselVessel
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Technology Enhances Offshore Industry Capabilitiesgy y p
Man in the Water Man out of the Water
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Offshore Drilling Rig Construction Cycle Drives Industryg g y y
Industry in Third Construction Boom
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Impact of Shale Revolution on Offshore Oil & Gas ProductionProduction
Hi h Oil P i D i i L d d GOMShale Gas Changed GOM Market High Oil Prices Driving Land and GOM Activity
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Outlook for Offshore Drilling Industryg y
Worldwide Semisubmersible Rig UtilizationWorldwide Jackup Rig Utilization Utilizationp g
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Dynamics of Other Offshore Market Segmentsy g• Supply Vessels
- Utilization up- Fleet expansion underway- Day rates higher
• Subsea Market- More deepwater discoveries- Technology increases capabilitiesgy p- Costs trending lower
• Offshore Construction- New offshore regions need infrastructure- Deepwater means more pipelines- Deepwater means more pipelines- Technology advancing
• Diving / R&M- Have to do more remotely
L t d ti t tl t ll- Lost production too costly to allow• Abandonment
- Lots of old platforms in GOM- Environmental/safety concerns
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- Aging North Sea and other regions
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Conclusions
• Global energy demand growing again
• Oil prices are up/predicted to stay up or rise
• Capital for the oil and gas industry is availablep g y
• Offshore fleet expanding and upgrading
Sh l ill lt ff h k t• Shale will alter some offshore markets
• Deepwater discoveries opening new opportunities
• Now, only governments can screw up the market
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