The withdrawal of companies from mining areas threatens oil reserves

Wednesday, February 18, 2014 10:37



Heading international oil companies to cut spending on exploration, which means withdrawal of areas to explore new reserves and threatens the future, due to the impact of those companies one of the worst years in terms of discoveries in nearly 20 years.

With the failure of some mining operations in important places such as the coast of West Africa, from Sierra Leone, Angola even decreased the estimated value of companies that focus on exploration, and major oil companies have begun to change its modus operandi.

Said Tim Dadson, head of exploration at Statoil, which was the largest company to explore for conventional reserves in the world last year, "is becoming increasingly difficult to find new reserves of oil and gas, particularly oil."

Dadson said "discoveries became somewhat smaller and more complex and more distant, and it is difficult to change that direction." "The whole industry will face difficulty in bringing new reserves in the coming period."

Although the final data for 2013 are not yet available Dadson said that last year was probably the worst year for oil exploration since 1995.

Said Lyle Brinker director of energy research at any company. Virus. S Consulting firms will reduce energy exploration, especially in the new areas.

He said: "Some will retreat from drilling operations in areas such as the Arctic or the deeper waters of Infrastructure Ltd. .. and will continue to be places like the Gulf of Mexico and Brazil has been very active."

The most affected by this trend are the major oil companies that want to maintain the resource base with a huge decrease in the number of oil fields in the world's major traditional and the difficulty of access to the areas of exploration, especially in the Middle East.

Expects the International Energy Agency of lower oil prices to $ 102 a barrel next year from about $ 108 at the moment with the growth of production from several sources.

Said Virendra Chauhan, analyst at Energy Consulting Ospkedz "should oil prices remain at high levels because lower prices or reduce corporate investment may lead to a slowdown in production growth."

Said my company. My earlier that despite the rise in global oil reserves and one percent in 2012, it is equivalent to the global consumption for a period of 52.9 years, down from 54.2 in 2011. Expects me. Increase my consumption of 19 million barrels per day by 2035, which represents an increase of 21 percent on estimates of U.S. Energy Information Administration in 2011.

Has begun some energy companies have already shifted their capital from traditional production to the production of shale has this trend will continue because of the lower risk of exploration and the short time between investment and the start of cash flows as well as the appropriate size of the projects.

And adversely affecting the stocks of companies that focus on exploration. Said Anish Kapadia, an analyst at Tudor company Bakering Holt & Co International Consulting "stocks traded exploration discoveries worth or less of them so from the perspective of the stock market has no ownership interest in the shares of those companies. People lose confidence in exploration."

Shares of European exploration companies 20 percent over the past year compared to an increase of the European index of oil companies two percent.

The data showed any company. Virus. S that spending cuts led to a decline in mergers and acquisitions by half last year and plans to enhance shareholder returns may focus on cooperation rather than acquisitions.

Said Jeremy Bentham, vice president of Shell in charge of the business climate may see more activity on the level of assets than at the corporate level .. Further joint ventures and asset swaps and asset purchase and sale. "

It is believed insiders within the industry that energy companies may not go back on those cuts until after the start in the cash flows and returns of capital allocated by projects such as the Gorgon LNG, a subsidiary of Chevron, worth 54 billion dollars and a draft Australia Pacific LNG, a subsidiary of Conoco and its value 25 billion dollars. St.


http://www.albaghdadia.com/economy/item/26598-2014-02-18-07-38-30