“I am ready for the winter but I want a tablet computer for maximum $3.7 Million to review my business from any location.”

 We are talking about automated workstation for Alexey Miller, Chief Executve Officer at Gazprom.

It is estimated Oil & Gas sector would increase by 50% in 2030. Let's talk about it by looking at ongoing and future trends in global economy.

Details

In 2016 the completion of “The Power of Siberia” project is expected to be finalized as this construction of massive pipelines undertaken by Russian Mega companies i.e. Gazprom and Pemex’s Los Ramones by entering in Phase 2 is among the biggest boosts of all time for Oil and Gas industry. The biggest aim behind “The Power of Siberia” project is to have unified gas transmission system and gas production centers for Irkutsk and Yakutia to get across the gas from these centers and conveying it to Vladivostok. This trend is helping Russia in natural gas export and gives excess to the economy of South Asia. Whereas on the other perspective Los Romones Phase 2 plans to help Mexico in order to satisfy its own oil demand.

Introduction of new technology of oil extraction by BP is the first one as the frontrunner in this technology. Well this new BP technology is introduced to boost the quantity of oil that it can extract. This plan is used for the first time at £4.5bn by the west of Shetland for the Clair Ridge development. If the conventional way is used the oil will carry only 10% crude that it contains. In result the pressure will be exhausted. But with new method introduce by the Clair Ridge alone will bring in extra barrels of 42 million in the energy firm. Oil on surface is more because of the established industry technique for water flooding. Deep into the seabed inside the sea water is pumped within the oil bearing rocks.

The new trend of Shale gas is related to natural gas which is packed within shale formations. The rich sources of petroleum and natural gas are Shales that is fine grained sedimentary rocks. Over the period of decade the mixture of horizontal drilling and hydraulic fracturing had permitted to way in to huge volumes of shale gas that were formerly uneconomical to produce. The natural gas production taken from shale formations had revitalized the industry of natural gas in the United States. The use of shale gas is prevented because of the limitations on extraction technology usage.

To know the general trends in energy sector is supply of the Natural gas which is fast growing and can overtake coal and is on second position behind oil, it is assessed that the coming 2 decades will bring more than 60% rise in Natural gas demand. With this global demand trend that is 55% now and will be 60% in future for oil and natural gas as the both will become the top two energy sources of the world. The more supply of new oil and gas will be getting through unconventional sources i.e. production from shale formations because of the growing share lead by global supply. The renewable energies are expected to grow timely, specifically wind and solar power. There might be chances of delay in demand growth and curb emissions because of the energy saving technologies and practices that are new high efficiency natural gas plants and hybrid vehicles that has bring efficiency in energy sector.

 

Oil & Utility Industry

Know the Trend of National Iranian Oil Co.

 It has calculated that the 6.4 billion barrels per day are supplied by National Iranian Oil Co. Iran is a huge oil and gas producer in spite of international sanctions but India and Turkey are blamed to trading Iranian oil against gold. Although an agreement of new term crude supply 2012 has signed between National Iranian Oil Company and Chinese trader Unipec. But it is ended in a dispute due to over payment terms. However it is unclear whether Unipec has accepted the terms of credit period from 60 days to 90days.

 

Identify the Trend of Exxon Mobil

The Exxon Mobil is expanding into nuclear power i.e. up to 5.3 million barrels every day. The company $400 billion in sales is not seems like a lot as compared to its annual profits i.e. $40 billion. After the struck up a deal of the summer 2012 with Russia Exxon move on to imposed themselves on the entire market to take leading role on the nuclear market. The main focus of the company is to double the production of world’s nuclear energy.

 

Look at the Trend of PetroChina

PetroChina is leading the world with 4.4 million barrels supply a day as it is one of the biggest of china’s three stated oil giant. It also control over the portion of the market i.e. high as compared to the publicly traded giants. It is competing well with the Gazprom to get regional dominance in the oil and gas sector. The prior most aim of the PetroChina is to promote forestry bio-energy which is key part for energy development strategy in order to achieve goals for industry and ecology. So the biggest focus is on the Green source of energy.

Discover the Trend of British Petroleum

BP reputation was ruined by the oil spill explosion in the Gulf of Mexico and damages its funds now up to 4.1 million barrels are supplied per day. Although BP might not maintained its sale per day of 4.1 billion for a longer period due to the concerns related to it.

 

Recognize Trends of Royal Dutch Shell

The 3.9 million barrels sale per day is made by the Royal Dutch Shell. Its $24bn investment was a let down for shell due to the promises made by US Shale gas boom who failed to keep the promises. Shell is venturing hard and making its effort in Alaska’s Chuckchi Sea to start drilling it for oil.

Get Familiar with the Trends of Pemex 

The sale is up to 3.6 million barrels on a daily basis. $2bn tender is voided by Pemex which was their largest tender among all because of the project i.e. Los Ramones which is moving into phase 2. As this project is backbone of Mexico’s natural gas transportation system. But now it is lead by Pemex and it has become its crown jewel. From now onwards Mexico will be facilitate by Pemex for efficient gas transportation for the upcoming years to come.

 

Get to Know the Trend of Chevron

A daily sale of 3.5 million barrels by Chevron is making it successful one. It is an American based company that become frontrunners in the Shale gas boom and has constantly looking in Romania and Ecuador for unconventional fuel. As it is America’s one of the largest oil and gas company but has not come out from many controversies. Although in 2010 it has purchased atlas petroleum for $4.3 billion to increase acreage in Utica Shales and Marcellus.

 

Trend of Kuwait Petroleum Corporation

Getting the sale up to 3.2 million barrels per day by the Kuwait Petroleum Corporation is also an achievement and becoming a strong player in Europe is building its strengths while fulfilling its promises is the biggest deal of all by the corporation. In 1934 foundation was taken place of Kuwait’s oil company.

 

Know the Trend of Abu Dhabi National Corporation

The sales comparison to other companies is not as good as of others i.e. up to 2.9 million barrels a day. In UAE the power is taken by Abu Dhabi. As the strategic position of the corporation is good so it is taking benefit of it and building pipeline from Strait of Hormuz to Fujairah in order to take a chance of improving its crude exports resources through Iranian blockade.

 

Identify the Trend of Sonatrach

The sale is limited that is 2.7 million barrels on a daily basis and sooner the company is taking Algerian license as in Algeria output in form of natural gas is exported to Europe.

 

Recognize Trend of Total

Well the sale of Total is up to 2.7 million barrels supplied every day. They are coming up with long term deals, vision and partnership. Due to the new taxes on oil inventories are imposed by the French President in July, the biggest issue for Total is that it will cost almost $200 million and damage France refining sector which is already performing poor.

 

Familiarity with the Trend of Petrobras

The sale of the company is 2.6 million barrels a day. Company is battling to expand its horizon in one of their type huge ultra deep oil locations offshore.

 

Get to know the Trend of Rosneft

It is Russian company which has a sale of 2.6 million barrels a day. It is considered as the sibling to Gazprom. However Gazprom is one the oil companies that is controlled by Russia’s State.

 

The Trend of Exelon

 The company revenue is $23.5 billion and Profit is $1.16 billion. According to the research of Vermont Law School stated that because of operating costs and low electricity prices four of the nuclear power stations are shutting down in Illinois but Exelon Nuclear is completely denying this statement and saying that there is no chance of shutting down of any nuclear power plant in Illinois. According to the Exelon communication Manager the only nuclear plant that is going to be closed is in 2019 in New Jersey.

 

Conclusion

 Well energy sector is related to the life blood of growth and oxygen of economy specifically when we talk about the mass industrialization phase that are bringing the economic giants into market who are confronting today with approximately $5000 to $15000 per capita GDP. The fall of jobs was the biggest impact on employment during economic turbulence. No doubt that energy sector is recognized for being highly intensively capitalized; however the affect on employment is mostly forgotten. As referring to an example of the American Petroleum Institutes who calculated that the industry facilitates more than 9 million jobs indirectly and directly. This is more than 5% of the total employment according to a country perspective. Moreover 7.7% of US GDP was represented by the Energy industry in 2009 with added total value of more than US $ 1 trillion to the National Economy.

 As the above trend shows that to US and world GDP has a bigger impact of energy sector as it is a huge contributor to them. As the consumption of energy is increasing so that the percentage of being a huge contributor in the US and World GDP is slowly decreasing. As this has brought the oil and gas companies on 9th position out of 10 according to 2009 fortune global rankings. In 2005 starting it was confirmed that a high year on year growth of deals have been seen this year according to the analysis by outsourcing transactions declared by oil and gas companies. 

It has seen that oil and gas sector has shown a constant growth since 2005 and has shown a continuous signing behavior for deals that is evolving around.

According to the data presented it is clear that players in these vertical market against their counterparts who are horizontal market have tremendous investments seen in the energy sector and have enough options to lie back on to cover for global energy requirements for a long span of time. Moreover vertical market is considered as a place for businesses to thrive under the right administration of management and leadership in order to get a massive substantial fortune. Furthermore a backbone of energy markets is these companies. As these companies are making this sector lucrative and successful.  

Well it is also understandable that key outsourcing trends in the oil and gas vertical are the backdrop of this growth which is crucial for both buyers and suppliers. Whereas it is also examined that for oil and gas vertical outsourcing and off shoring activity the key trends according to the market update is to examine sources and give preferences across to the important majors of oil and gas. For every day consumer most important is the energy vertical market even knowing the importance of horizontal market. The reason is that due to the shortage for individual consumers the fuel prices will shoot up high because of the utility companies getting out of the vertical market.

Quotes

 "Positive Energy is a fuel to human growth."-  Prince Amir Al Saud 

"By 2030 global population will be over poverty line." - Prince Amir Al Saud