123ArticleOnline Logo
Welcome to 123ArticleOnline.com!
ALL >> Environment >> View Article

Worldwide Oil & Gas Production Led To Falling Due To Financial Crisis

Profile Picture
By Author: Bharatbook
Total Articles: 1486
Comment this article
Facebook ShareTwitter ShareGoogle+ ShareTwitter Share

Impact of the Financial Crisis on Oil & Gas Exploration and Production Investment Report ( http://www.bharatbook.com/Market-Research-Reports/Impact-of-the-Financial-Crisis-on-Oil-Gas-Exploration-and-Production-Investment.html ) focuses on the key challenges and issues faced by exploration and production companies.

The financial crisis that has created a world wide credit crunch may stem the flow of capital expenditure by exploration and production (E&P) companies. With commodities prices now having fallen 63% for oil and 50% for natural gas off recent highs in July 2008, E&P companies are cutting back their capital budgets and drilling plans for the remainder of 2008 and 2009.

E&P companies are expected to spend around $96.2 billion in 2008, up by 41% from $68.4 million in 2007. The fall in oil prices, on top of the credit crisis is expected to end this trend. The plunge in oil prices near $45 a barrel and natural gas near $6 per mcf will curtail E&P companies' spending on new projects, limit production growth.

The financial crises have led to the reduction in the number of M&A deals ...
... in the upstream oil & gas industry. There were on an average around 48 upstream M&A deals every month during April 2008 to September 2008. However, the number of M&As went down to 41 deals in October 2008 and just 36 deals in November 2008. Going forward, highly leveraged deals will become more difficult in the sector due to restricted access to credit. However, we expect further consolidation in the industry driven primarily by reserve replacement pressures and the need to diversify geographically.

In 2008, production growth is expected to be around 14%, the highest growth rate since 2003. If commodity prices continue to trade around the current level, companies are expected to cut down their initial production guidance for 2009 and onwards.

The global financial and economic crisis has led to falling stock markets and oil prices. The combination of falling stock markets and oil prices could be enough to trigger strategic acquisitions and partnerships by the oil and gas companies. To date, 514 E&P deals (Asset Transactions, Merger and Acquisition) took place globally, with a combined worth of around $138.6 billion, as compared to 437 deals in 2007, with a combined worth of $141.5 billion.

For vast range of market reports please visit : http://www.bharatbook.com/Market-Research/Oil-Gas.html

Or

Contact us at:

Bharat Book Bureau
Tel: 91 22 27578668
Fax: 91 22 27579131
Email: info@bharatbook.com
Website: www.bharatbook.com

Total Views: 237Word Count: 383See All articles From Author

Add Comment

Environment Articles

1. Your Lawn Could Host An Endangered Ecosystem
Author: TAHIR LATEEF

2. Mmr
Author: mmr

3. The Importance Of Cleaning High-touch Surfaces For Better Hygiene
Author: jacks

4. Challenges And Solutions For Solid Waste Management
Author: Gaurav

5. Áo Ghi Lê Bảo Hộ Có Túi đựng điện Thoại
Author: trường an

6. Comparing Skip Hire Options: Should You Choose Local Or National Providers?
Author: Lily Jones

7. Expert Fiberglass Pool Installation Services
Author: Pools Now

8. The Hidden Gems: Qatar's Native Flora
Author: omar Shahat

9. Top Reasons To Choose An Online Solar System For Your Home: Convenience, Savings, And Customization
Author: Paul

10. Innovative Approaches To Fecal Sludge Management For Urban Sanitation
Author: jasmin thakkar

11. Busch Group Drives Sustainable Future Technologies
Author: Busch Vacuum Solutions

12. Human Hair Extension In Bangalore
Author: naturewigs

13. Navigating Skip Hire For Hazardous Waste: What You Need To Know
Author: Lily Jones

14. Five Great Ways To Save Energy In Your Kitchen
Author: Alicia Reno

15. Environmental Issues For Climate Change - What Should You Know?
Author: Climate Diet

Login To Account
Login Email:
Password:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: