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| Monthly Newsletter |
June 2009
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Welcome to June's edition of Bright Spots, our round up of oil and gas news in Deloitte. This month we take a look at how drilling has dropped in the UKCS, the importance of keeping and maintaining talent in the industry and the much debated price of oil. We also take time to look back at comments generated from an article featured in last month's newsletter 'Oil and gas reality check', and presentations given at the Dutch oil and gas conference focusing on the investment climate in that region. We give you information on the newly announced licensing rounds in Russia, Alaska and India, and keep you up to speed with the training opportunities that we provide. Finally, we would like to draw your attention to a talk being given by Graham Sadler, our managing director, at the 20th World Oil Forum.
- Thought leadership -
UKCS to see drilling activity drop
Deloitte analysis
Drilling activity on the UK Continental Shelf may fall by half in 2009 and drop
again in 2010 despite the new incentives and tax changes introduced by the
Chancellor in April.
High operating costs and tax burdens are affecting drilling with investment
in new and existing fields expected to fall to £3.5-4.5 billion this year and dropping
again to £2.5-4 billion in 2010.
The analysis was given at a briefing in Aberdeen on 26 May 2009, in partnership
with trade association Oil & Gas UK, which lobbied for major changes in the
fiscal regime to improve activity on the UKCS, especially with low oil prices.
More > Oil and Gas Journal: UKCS to see drilling activity drop
Top
Drilling for talent in the new millennium
Retaining talentThe need to develop and retain talent is a pressing issue for many companies around the globe, but it is especially prevalent today for those in the global upstream sector of the oil and gas industry. Aggravated by a generational gap in the current labour pools resulting from a low influx of new talent during the 1980s and 1990s, the industry is facing ever-increasing pressure to retain an aging workforce - greater than 50% is over 45 years old, while at the same time employing creative techniques to harness the intuitive knowledge they possess.
Download > Drilling for talent
(PDF, 8 pages, 282.78KB)
More > Generation Y: A highly productive resource
More > Winning the talent management battle
Time to get used to $80 oil
Upstream reports Deloitte viewsOn 15 June 2009, Upstream reported on the ever debated average oil price expected in the coming year, with Deloitte's chief economist, Ian Stewart, expressing his views on the topic.
The world may have to get used to an average oil price settling closer to the $80 mark, once prices settle after the past year's wild fluctuations. Just as oil at last year’s peak of $147 looked excessive, its low of $34 looked unlikely to last, said Ian Stewart in an internal company briefing.
"It looks as if oil prices have moved to a permanently higher level relative to the 1990s where an average of $16 per barrel prevailed," he said.
More > Upstream: Time to get used to $80 oil
Top
Did it work?: Technology to make oil extraction slicker
Comments following Deloitte's oil and gas reality checkLast month we featured an article entitled 'Oil and Gas Reality Check: ten of the top issues facing companies in the coming year'. With such pressing issues facing the oil and gas industry, we delve one step further to discuss the use of technology within the industry. On 17 June, John Woods, oil and gas consulting partner at Deloitte expressed his views to the Financial Times on this matter.
More > FT: Did it work? Technology to make oil extraction slicker
Deloitte Dutch oil and gas conference 2009
Investment climate in the Dutch oil and gas industryOn 14 May 2009, Deloitte's Dutch oil and gas conference took place at the Hulstkamp Gebouw in Rotterdam. The 2009 conference focused on the investment climate in the Dutch oil and gas industry, with speakers from Shell, Nederlandse Gasunie, ING Wholesale, Vopek, Cirrus and EBN.
More > Presentations from the Dutch oil and gas conference 2009
- Technical -
Licensing rounds
India: NELP VIII Round and Fourth Coal Bed Methane Round
On 9 April 2009, the Indian Ministry of Petroleum & Natural Gas
(MOP&NG) launched the Eighth Round of New Exploration Licensing Policy (NELP)
and Fourth Round of Coal Bed Methane (CBM IV).
Under the CBM IV Round, 10 blocks covering an area of 5,040 square kilometres in
six states are on offer.
Under the NELP VIII Round, 70 exploration blocks covering an area of 163,535 square kilometres in 11 sedimentary basins are on offer. Of these 70 blocks, 24 are located in deep waters, 28 are located in shallow waters and 18 are onshore blocks. Companies are required to submit their bids by 10 August 2009, with results expected to be announced in December 2009.
More > NELP VIII and Fourth Coal Bed Methane Round
More > NELP VIII: Bid documents
Russia: Blocks offered in Khanty-Mansiysk Autonomous AreaThe Russian Subsoil Management Agency invited applications for the Chanatoyskiy block, being offered for 25 years of exploration and production. The agency has also announced an auction of five blocks (Vostochno-Kayumovskiy 1, Vostochno-Nikolskiy, Zapadno-Tumannyy, Zmanovskiy, and Ityakhskiy) to be held on 29 July, each with 25 years exploration and production.
The Subsoil Management Agency of Khanty-Mansiysk Autonomous Area announced an auction to be held on 11 August 2009. Under this auction, the Vostochno-Gribnoy block is offered for 20 years and the Shukhtungortskiy block is offered for 25 years of exploration and production.
Russia: Blocks offered in the Republic of Sakha
The Russian Subsoil Management
Agency announced an auction of four hydrocarbon subsoil areas offered for
exploration and production. The deadline for submitting applications and deposits
is 26 June 2009 with the auction being held on 5 August 2009.
Russia: Blocks offered in Orenburg Region
The Subsoil Management Agency of Orenburg Region announced an auction of four
hydrocarbon blocks to be held on 31 July 2009. The deadline to submit applications
and deposits is 13 July 2009.
Russia: Blocks offered in Komi Region
The Subsoil Management Agency of Komi Republic has also announced an auction,
in which the Verkhnekhatayakhskiy-II block is offered for 20 years of exploration
and production. The deadline to submit applications and deposits is 13 July
2009.
More > Blocks offered in four regions of Russia
Alaska: Cook Inlet and Alaskan Peninsula 2009 Lease Sales
The Alaska Department of Natural Resources (ADNR), Division of Oil and Gas (DO&G), offered lands for competitive
oil and gas leasing in the Cook Inlet Areawide 2009 (CI2009) Lease Sale on 20 May
2009.
The sale resulted in five bids received on four tracts for a total of 7,685 acres. The sum of all bids received was USD147,001.65 and the total of only the high bids was USD110,009.65.
The DO&G, also offered lands for competitive oil and gas leasing in the Alaskan Peninsula Areawide 2009 (AP2009) Lease Sale on 20 May 2009.
No bids were received for this sale.
More > Cook Inlet and Alaskan Peninsula 2009 Lease Sales
More > Division of Oil and Gas: Cook Inlet Lease Sale
- Training -
Industry training
We are hosting a number of industry and technical training courses designed to help those who are new to the petroleum industry or wishing to broaden their understanding on a given subject. Currently we have the following courses available:
- Power of gas - essentials of gas and LNG
- Future potential - integrated evaluation of upstream hydrocarbon assets
- On the map - practical training in ESRI ArcGIS for oil and gas professionals
PetroView training
We continue to provide our PetroView training courses throughout the year, which help develop skills to best utilise our leading upstream oil and gas GIS application.
- Topical -
Events
20th World Oil Forum 2009On 15 July 2009, Graham Sadler, managing director of Deloitte's Petroleum Services, will be giving a talk at the Forum on "Industry outlook in 2009 and beyond" during a session dedicated to independant upstream oil and gas companies.
Date: 13-15 July 2009
Location: Intercontinental, Park Lane, London
Download > 20th World Oil Forum
(PDF, 2 pages, 571.45KB)