Upstream In Perspective

2020 is proving to be a tough year for oil and gas - no matter if its onshore or offshore activity. Low offshore activity, cost impacts and demand challenges have left the markets depressed. So, where will investments be made? Are there bright spots ahead? Our team of offshore and onshore experts discuss.

Two $10 billion gas-infrastructure deals may be leaving investors asking, “if it’s built, should we buy it?” as financial market participants seek relative cash-flow certainty in a low-rate environment. In this week’s episode, we consider with Michael Stoppard and Ed Kelly whether more infrastructure dollars may be on the prowl for other deals and where some of the transactional risks and opportunities may be going forward.

Chevron agreed on July 20, 2020, to acquire Noble Energy for $5 billion, or $10.38 per share. The announcement comes a bit more than a year after Chevron’s unsuccessful bid for Anadarko Petroleum, and will increase Chevron’s upstream presence in Global Gas and North America unconventionals. We discuss with IHS Markit experts the deal’s implications for the sector, and whether it signals a resurgence in Upstream M&A going forward.

After a chaotic start to 2020, perhaps we can say that the worst is behind us. Our North America onshore researchers discuss where there are signs of stabilization for 2020 onwards. Listen as they share recovery updates on the proppant, pressure pumping and upstream water segments.

Media and forecasters are increasingly making past-is-prologue comparisons between the 1970s and the coming 2020s, flagging potential parallels in pandemics, protests, and presidential campaigns. What can we learn from the 1970s as we consider energy markets in the coming decade?

IHS Markit’s Financial and Capital Markets Energy Research team discusses whether the rapid oil-price increase on the back of COVID-19 economic shutdowns has gotten overheated, and what near-term response to expect from North American producers.

Our Asia-Pacific upstream research team explores the future of Chinese national oil companies. Balancing energy security priorities with the oil and gas declines during this downturn could mean different strategies and priorities for China’s NOCs compared to the previous oil market crash. Learn more insights at www.ihsmarkit.com/energyblog.

The interconnectedness of the North America oil and gas industry means ripples are felt throughout the value chain. Our experts share the outlook for North America crude, financials and gas. Learn more about the North America outlook at https://ihsmarkit.com/research-analysis/the-north-america-oil-and-gas-industry-enters-survival-mode-.html

From a global perspective, conventional exploration and discoveries are at the lowest level in seven decades. In many ways, the rise of unconventional resources has diverted investment away from conventional E&P. But, the interplay of peak oil demand, operator specialization and the energy transition continue to factor into exploration. What does the exploration future look like? Our experts Jerry Kepes and Keith King discuss on the podcast.

After falling to its lowest weighting in the S&P 500 and facing climate change headwinds, the state of energy investment may have hit crisis-level. How will E&P companies deliver growth? And, how does the financial community see the energy segment? Our financial and capital markets experts join the podcast to discuss.

Our experts take a walk down memory lane with us as we explore their 2019 expectations for upstream oil and gas markets. Plus, we play a fun upstream energy version of "Would you rather" - focused on what's ahead in 2020.

Offshore wind is seen by many as an emerging low-carbon opportunity where certain oil and gas firms can leverage competitive advantages from their established expertise in offshore projects. Rapidly falling costs, new technology and policy support have helped firms create value in offshore wind projects. But, is it a sustainable opportunity for offshore oil and gas companies?

Amid concerns of credibility, cash flows and carbon, investors are shying away from the oil and gas industry. What's behind investor apathy? And, how are E&P strategies changing? IHS Markit experts from our financial services and energy businesses take a look from both the investor and operator viewpoints.

Electric fracking promises a number of advantages including some cost reductions, noise reductions, emission reductions and more. So, what’s the downside? Why aren't more operators moving to electric fracking? Our cost & technology analyst, Jesus Ozuna, gives an overview.

IHS Markit recently estimated the US oilfield water management market to now be valued somewhere around $37.5 billion. That represents a 12% year-on-year market growth from 2018—mainly driven by water disposal and water hauling. On our recent podcast, our experts Paola Perez Pena and Prescott Roach give us an overview the market, including how the Permian Basin plays a part.

In part two of our podcast on low-carbon strategies, we explore how upstream oil and gas companies are balancing profitability of the various low carbon investments.

Can low-carbon be profitable? Chris DeLucia joins the podcast to discuss the value proposition of alternative businesses for oil and gas companies.

China’s contribution in the global economic growth has been unparalleled, with its economic rise mirroring an exponential demand growth for oil and gas resources. Upstream experts, Nick Sharma and Kunfeng Zhu, join the podcast to explain the prospects of shale and tight gas in China in the upcoming years.

The MSGBC, or Senegal, Basin off the coasts of Senegal and Mauritania in western Africa is one of the most exciting areas of frontier exploration in the world. To date, there have been 168 newfield wildcats drilled in the basin that have discovered approximately 9 Bboe of recoverable resources, with over half of the volumes discovered in Senegalese waters. Jerry Kepes joins us to provide an overview of geological attributes and activity in the basin, and he gives us an overview of how potential discoveries might impact the broader market and region.

Brazil, Mexico, and Guyana represent critical E&P hotspots within Latin America. Ford Tanner, an analyst covering oil and gas risk in Latin America, joins the podcast to share his views on the most important above-ground risks facing E&P investors.